You are here

GuocoLand's Q2 profit drops on absence of divestment gain from associate

GUOCOLAND Limited reported a 25 per cent drop in net profit to S$43 million in the second quarter ended Dec 31, 2017 due to a divestment gain by an associate in the comparative period.

Its revenue jumped 60 per cent to S$370.6 million, thanks mainly to stronger sales and higher progressive revenue recognition from its Singapore residential projects.

During the quarter, its share of profit from associates and joint ventures fell to S$9 million from S$44.8 million a year ago as it recognised a one-time gain from the divestment of a land parcel in the year-ago quarter.

For the fiscal first-half, GuocoLand's net profit more than doubled to S$208.5 million from S$82.8 million a year ago on the back of higher revenue and share of profit of associates and joint ventures.

The 69 per cent jump in revenue for the six-month period to S$732.5 million was led by stronger performance of its residential projects in Singapore.

Contribution from Changfeng Residence, a joint-venture residential project in Shanghai that has been substantially sold and completed, was the main reason behind the surge in share of profit of associates and joint ventures to S$179.5 million in the six-month period, up from S$44.7 million in the year-ago period.

Giving an update on its projects in Singapore, GuocoLand said that its city-fringe condominium project Sims Urban Oasis has obtained its temporary occupation permit in October last year. The 1,024-unit project was about 94 per cent sold as at end-2017.

Its luxury residential project Martin Modern at Martin Place, launched last July, sold 210 units out of a total of 450 units as at end-2017.

The group secured a commercial site in Beach Road last October for S$1.622 billion in a 70-30 joint venture with its parent, Hong Kong-listed Guoco Group. Both companies are controlled by Malaysian tycoon Quek Leng Chan.

BT is now on Telegram!

For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes