UEL posts S$10.6m profit in Q3 from continuing operations

UNITED Engineers Limited (UEL) reported a net profit of S$10.6 million for the third quarter ended Sept 30, down from S$134.65 million a year ago.

The 92 per cent plunge was mainly due to some S$123 million of profit attributable to owners of the company in the year-ago comparative period, derived from discontinued operations related to Multi-Fineline Electronix Inc and its subsidiaries and the group's environmental engineering businesses.

UEL had sold its US subsidiary Multi-Fineline Electronix and environmental engineering firm UES Holdings last year.

Excluding discontinued operations, the group's net profit from continuing operations marked a 9 per cent drop from S$11.7 million a year ago.

For the quarter, revenue increased 41 per cent year on year to S$143 million mainly due to revenue recognition from The Manhattan in Malaysia following the completion of the project during the quarter, and higher revenue from sales of property units in Singapore.

For the nine months ended Sept 30, net profit of S$64.2 million was 56 per cent lower than the year-ago period due to absence of contribution from discontinued businesses. But excluding discontinued operations, net profit from continuing operations represented a 99 per cent jump from a year ago on the back of revaluation gains.

UEL's revenue for the nine months rose 2 per cent to S$366.2 million, thanks to higher revenue from property development, which was partially offset by lower revenue from other business divisions.

"Although regional geopolitical uncertainties continue to persist, the Singapore property market seemed to have stabilised with improved overall sentiments and strengthening global economic conditions," the group said in its financial statement.

"In China, the property cooling measures have brought about a relative slowdown in activity but the property market may continue to see sustainable growth in the longer term."

A consortium led by Perennial Real Estate Holdings and Yanlord Land Group had launched an offer for UEL shares, and closed the offer in September with a stake of 33.5 per cent in UEL.