SINGAPORE (Aug 14): Property developer Sinarmas Land posts a 78.7% surge in earnings to $63.0 million for the 2Q ended June, from $35.3 million a year ago.
This was on the back of higher revenue and better operating performance from its Indonesia division.
Revenue grew 34.3% to $299.3 million in 2Q17, from $222.8 million a year ago.
This was mainly attributable to higher sales of land parcels, a larger number of residential units handed over to homebuyers, as well as increased revenue recognition from apartments in BSD City, Indonesia.
In 2Q17, the group recognised $117.3 million of revenue from sales of land parcel to its joint venture with Mitsubishi Corporation, PT BSD Diamond Development, for further joint development.
The gain arising from this transaction that is attributable to the interests of the group has not been recognised in the group’s income statement in accordance with the requirement of Singapore Financial Reporting Standards.
The reversal of unrealised gain of $42.7 million that represents the group’s portion for gain on sales of land parcel to the joint venture adjustments have been made in the share of results of joint ventures, resulting in a loss of $40.4 million for 2Q17.
EBITDA is 2Q17 improved by 73.9% to $207.4 million, from $119.3 million a year ago. EBITDA margin climbed 15.7 percentage points in 2Q17 to 69.3%.
As at end June, cash and cash equivalents stood at $747.9 million.
“Confident on the long-term growth potential of the property sector, the group will embark on land sales and strategic alliances to accelerate future growth, while focusing strategically on increasing recurring income contribution through development and acquisition of commercial properties,” says Margaretha Widjaja, Sinarmas Land’s executive director and vice-chairman of the group’s Indonesia division.
“Going forward, the group will continue to actively pursuing investment opportunities in London, Europe and other global cities to boost recurring income from its international division,” she adds.
Shares in Sinarmas Land closed half a cent higher at 43.5 cents on Monday.
