SINGAPORE (Nov 12): Property developer Oxley Holdings reversed out of the red with earnings of $12.2 million in 1Q20 ended September, compared to losses of $0.7 million a year ago.
This translates to earnings per share of 0.29 cents for 1Q20, compared to a loss per share of 0.02 cents in 1Q19.
The better earnings performance was mainly attributable to a six-fold surge in other gains to $33.1 million during the quarter. This was due to fair value gain on revaluation of an investment property in Cambodia and net gain from the mark-to-market of the derivative financial instruments.
1Q20 revenue grew 66% to $282.8 million, mainly due to increase in revenue from the development projects in Singapore and the United Kingdom.
Gross profit was 5% higher at $58.3 million in 1Q20, as gross profit margin slid 12 percentage points on lower margins from the UK project.
Interest income trebled to $2.8 million, mainly due to interest income from the advances due from joint venture and associate companies.
Marketing and distribution costs fell 47% to $3.6 million, mainly due to lower expenses incurred for the show flats.
Administrative expenses jumped 55% to $11.1 million, mainly due to higher consultancy fees incurred for the overseas projects.
Other losses more than doubled to $18.2 million, mainly due to an increase in the unrealised foreign exchange loss from translation of foreign currency denominated balances.
As at end-September, cash and cash equivalents stood at $449.1 million.
As at end-October, the group had total unbilled contract value of $3.3 billion, of which around $2.3 billion was attributable to projects in Singapore.
Looking ahead, the group says it remains “cautiously optimistic” on the outlook for the real estate sector.
Barring unforeseen circumstances, the group aims to sell all the Singapore residential units by the end of 2020 and prepare for the launch of new projects in Ireland and Vietnam in the new year,” says Ching Chiat Kwong, Oxley’s executive chairman and CEO.
Shares in Oxley closed half a cent lower, or down 1.5%, at 34 cents on Tuesday. Year to date, the counter has climbed some 19.3%.
