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OUE Q2 net profit soars on gain from divestment of stakes

PROPERTY developer OUE Limited on Tuesday posted a ballooning in net profit to S$60.9 million for its second quarter ended June 30. This was more than 10 times the S$5.3 million that it reaped a year ago.

This was mainly due to a one-off S$136.6 million gain on disposal of Aquamarina Hotel, which owns Marina Mandarin Singapore. 

OUE completed the divestment of its minority stakes in Marina Centre Holdings, which owns assets that include the Marina Square retail and commercial complex, and Aquamarina Hotel in April 2019, for S$390 million. 

Revenue rose 89 per cent to S$285.3 million, mainly due to higher contributions from the development property divisions, as the period saw the completion of OUE Twin Peaks units sold under deferred payment schemes.

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This was partially offset by lower contributions from the investment properties and healthcare divisions. The former was due to the lower contribution from US Bank Tower while lower revenue from the healthcare division was mainly because of lower contribution from its operations in China. 

The board has proposed an interim tax-exempt dividend of one Singapore cent per share, similar to a year ago. This will be paid on Sept 26.