Q3 earnings double to S$10.7m for Bukit Sembawang Estates on higher sales, profit recognition

HIGHER sales and higher profit recognition on projects helped to push up third-quarter earnings at Bukit Sembawang Estates, the property developer said on Monday.

Net profit for the three months to Dec 31, 2017, stood at S$10.7 million - double the S$5.35 million in the same period the year before.

Turnover rose by 69 per cent year-on-year to S$17.53 million.

The company noted that it had recognised profits for the quarter on its Watercove Ville project, as well as two houses in Lengkok Angsa.

Bukit Sembawang Estates also saw other operating income grow to S$1.78 million, a turnaround from expenses of S$1.85 million the year before.

It said that such income was mainly due to a write-back of allowance for foreseeable losses on development properties - to the tune of S$35.5 million - for its Paterson Collection project.

But much of this was offset by the Additional Buyer's Stamp Duty of S$31.8 million incurred for the same project.

Finance income also slid by 57.7 per cent to S$540,000, largely owing to a decrease in interest income from fixed deposits placed with banks.

Earnings per share rose to 4.13 Singapore cents for the three months, from 2.07 Singapore cents previously.

Official statistics have shown a full-year increase of 1.1 per cent in private home prices for 2017, coupled with a 33 per cent jump in the number of new units sold compared with the previous year, the company noted.

It said in its industry outlook that it is "closely monitoring the changing dynamics of the residential property market for timely launching of new residential projects for sale".

Bukit Sembawang Estates closed down by S$0.02, or 0.33 per cent, to S$6.03, before the announcement.