Higher development, investment income boost UOL's Q2

Net profit rose 21% to S$132.7m; revenue up 59% due mainly to consolidation of UIC group

Sat, Aug 04, 2018

HIGHER profit from property development and property investment, as well as higher dividend income received and recognition of higher fair value gains on investment properties, gave a fillip to results for UOL in its second quarter.

Net profit rose 21 per cent to S$132.7 million from the previous year. For the three months ended June 30, revenue surged 59 per cent to S$635.4 million from the preceding year.

The increase in revenue was due mainly to an additional S$295.5 million from the consolidation of the UIC group and the associated and joint venture companies of UOL group and UIC group from September 2017, it said.

"Excluding the effects of this consolidation, revenue from property development was lower by S$69 million or 31 per cent, with lower progressive recognition of revenue from Principal Garden as the project approaches completion in end 2018; absence of contribution from [email protected] which was fully sold in August 2017, offset in part by revenue from Amber 45 which was launched in May 2018.

"Revenue from hotel operations remained flat as the loss of revenue from the closure of Pan Pacific Orchard for redevelopment was largely replaced by new revenue from Pan Pacific Melbourne which was acquired in end July 2017. Revenue from property investments was lower by 4 per cent or S$2 million mainly due to lower revenue from OneKM mall.

"The increase in dividend income was mainly from United Overseas Bank (UOB) Limited which declared higher ordinary and special dividends in the current quarter totalling 65 cents per share compared to 35 cents per share in the second quarter of 2017."

UOL has a small 2.4 per cent in UOB.

Earnings per share came in at 13.59 Singapore cents, a reversal from a loss per share of 0.03 Singapore cent in the previous year. Net asset value per share edged up to S$11.34 as at June 30, from S$11.23 in six months ago.

UOL shares ended 4 Singapore cents or 0.6 per cent down at S$7 on Friday.