SINGAPORE (March 31): Construction firm Low Keng Huat’s earnings fell to $6.3 million for the fourth quarter ended Jan 31, an 80% decline from the $32.1 million it posted a year ago on lower revenue.
Revenue for the quarter came in at $10.2 million, which was less than half of the $20.8 million reported in 4Q16.
This was due to an absence of revenue in the hotel segment after the sale of Duxton Hotel Saigon (DHS) in the current year, as well as lower contributions from Duxton Perth as a result of lower room rates and occupancy.
In the property development segment, only one office unit at Paya Lebar Square (PLS) was sold during the financial year.
Low Keng Huat added that there was no revenue for the construction segment during the quarter since the group ceased tendering for third party construction contracts since 2015.
Other income during the quarter rose 19% to $14.3 million from $11.9 million a year ago, mainly due to the extraordinary gain from sale of DHS, Shanghai Xinfeng Realty Development, and the group’s joint venture OSC-Duxton (Vietnam) Joint Venture Company.
For FY17, group earnings remained at $55.7 million, unchanged from the previous year although FY17 revenue fell 46% to $47 million.
This was due to higher profits in its hotel, investment and development segments for the full year more than offset the losses incurred in the construction segment.
A first and final dividend of 3 cents per share, as well as a special dividend of 1 cent per share, has been declared and will be paid on June 21 following shareholders’ approval.
Shares of Low Keng Huat closed 0.8% higher at 64 cents on Friday.
