SINGAPORE (Aug 27): Oxley Holdings saw its earnings plunge 81% to $25.6 million for the 4Q19 ended June, falling from $137.7 million a year ago.
This brings full-year earnings to $146.3 million for FY19, just over half of FY18 earnings of $285.0 million.
4Q19 revenue fell 57% to $100.4 million, from $233.1 million a year ago, mainly due to lower revenue contribution from its project in the United Kingdom.
Gross profit dropped 18% y-o-y to $23.0 million, buoyed by higher gross profit margins from its hotel operations, the UK project, and its new Singapore development projects.
The group registered other gains of $96.7 million in 4Q19, some 38% lower than other gains of $156.6 million a year ago.
This was mainly due to lower fair value gain on the investment property in Singapore and lower net gain from the mark-to-market of the financial instruments in 4Q19.
Administrative expenses surged 68% higher to $26.2 million during the quarter, compared to $15.6 million a year ago, mainly due to higher accrual of payroll-related cost and other expenses.
The group reported a loss of $21.2 million from share of results of associates and joint ventures in 4Q19, compare to a gain of $29.7 million a year ago.
The share of losses in 4Q19 arose from losses from the associates and joint ventures in Australia, China and the UK.
As at end June, cash and cash equivalents stood at $474.4 million.
As at June 30, 2019, the group has total unbilled contract value of $3.9 billion. Some $2.2 billion of this is attributable to projects in Singapore, while the remaining $1.7 billion is from overseas projects.
The group has recommended a final dividend of 0.68 cent per share for FY19, some 12.8% lower than the final dividend of 0.78 cent a year ago.
Together with the interim dividend of 0.32 cent per share paid earlier, this brings full year dividend for FY19 to 1.00 cent per share.
Looking ahead, Oxley says it remains cautiously optimistic of sustainable future growth.
“We acted swiftly when opportunities came to reduce our gearing when we saw uncertainties in the global market last year. The disposal of Chevron House and part of Dublin Landings boost our profitability and cashflow,” says Ching Chiat Kwong, executive chairman and CEO of Oxley.
The group says it is on track to reduce its borrowings and gearing ratio, and is in a good position to make the forthcoming bond repayment.
Shares in Oxley closed flat at 30.5 cents on Tuesday before the results announcement.
