reporter2
10-02-14, 16:14
http://www.businesstimes.com.sg/premium/companies/others/profit-recognition-boosts-oxley-q2-net-251m-20140210
Published February 10, 2014
Profit recognition boosts Oxley Q2 net to $25.1m
By cai haoxiang [email protected]
OXLEY Holdings said that net profit for its second quarter ended Dec 31, 2013 more than doubled to $25.1 million, from $11.4 million the same period a year ago.
This was mostly due to an accounting requirement that caused the entirety of profit to be recognised for a completed 131-unit commercial and industrial project, The Commerze@Irving.
Profit continued to be recognised for partial completion of 12 mixed-residential projects, as well as share of profit from a joint venture and foreign exchange adjustment gains, offset by fair value losses from marking currency swaps to market.
Revenue for the quarter increased by more than two times to $202.2 million, from $59.8 million a year ago, boosted by revenue recognition for The Commerze@Irving.
Oxley declared an interim dividend of 0.3 cent per share, compared to 0.1 cent per share for the same period last year.
Looking ahead, the company said: "The property cooling measures introduced by the Singapore government have been successful in weeding out property speculators, causing overall demand for residential properties to remain soft.
"The group is hence monitoring the market for an opportune time to launch its remaining pipeline of mixed-residential projects at Oxley Rise, Joo Chiat and Ang Mo Kio Street 66."
Oxley said it is also developing its two investment properties. They are a hospitality and commercial project at Stevens Road, where the Pines Club was located, and an industrial project at Tampines Industrial Crescent.
To date, the group has launched 27 projects. As of Feb 7, 21 projects are 95 per cent or more sold. The remaining are Oxley Edge (92 per cent), The Midtown & Midtown Residences (94 per cent), NEWest (82 per cent), The Flow (50 per cent), Floraville (50 per cent) and Eco-Tech@Sunview (62 per cent).
Oxley has also been expanding aggressively overseas. It now has a pipeline of eight projects in Malaysia, one in London, UK, four in Cambodia, and two in China.
The accounting requirement that caused the lumpy earnings recognition this quarter is known as the completion of contract (COC) method used for commercial properties. Residential condominiums, by contrast, use the percentage of completion (POC) method, such that profits are recognised progressively as the projects are completed.
The COC method used for the completion of Oxley's 728-unit Oxley Bizhub had similarly caused a spike in Oxley's first quarter earnings.
Together, for the half year ended Dec 31, 2013, revenue was $888.2 million, and net profit, $275.9 million.
Net asset value at end-2013 was 16.87 cents, compared to 16.61 cents at end-Sep 2013.
The counter closed on Friday at 64 cents, down 3.5 cents or 5.2 per cent.
Published February 10, 2014
Profit recognition boosts Oxley Q2 net to $25.1m
By cai haoxiang [email protected]
OXLEY Holdings said that net profit for its second quarter ended Dec 31, 2013 more than doubled to $25.1 million, from $11.4 million the same period a year ago.
This was mostly due to an accounting requirement that caused the entirety of profit to be recognised for a completed 131-unit commercial and industrial project, The Commerze@Irving.
Profit continued to be recognised for partial completion of 12 mixed-residential projects, as well as share of profit from a joint venture and foreign exchange adjustment gains, offset by fair value losses from marking currency swaps to market.
Revenue for the quarter increased by more than two times to $202.2 million, from $59.8 million a year ago, boosted by revenue recognition for The Commerze@Irving.
Oxley declared an interim dividend of 0.3 cent per share, compared to 0.1 cent per share for the same period last year.
Looking ahead, the company said: "The property cooling measures introduced by the Singapore government have been successful in weeding out property speculators, causing overall demand for residential properties to remain soft.
"The group is hence monitoring the market for an opportune time to launch its remaining pipeline of mixed-residential projects at Oxley Rise, Joo Chiat and Ang Mo Kio Street 66."
Oxley said it is also developing its two investment properties. They are a hospitality and commercial project at Stevens Road, where the Pines Club was located, and an industrial project at Tampines Industrial Crescent.
To date, the group has launched 27 projects. As of Feb 7, 21 projects are 95 per cent or more sold. The remaining are Oxley Edge (92 per cent), The Midtown & Midtown Residences (94 per cent), NEWest (82 per cent), The Flow (50 per cent), Floraville (50 per cent) and Eco-Tech@Sunview (62 per cent).
Oxley has also been expanding aggressively overseas. It now has a pipeline of eight projects in Malaysia, one in London, UK, four in Cambodia, and two in China.
The accounting requirement that caused the lumpy earnings recognition this quarter is known as the completion of contract (COC) method used for commercial properties. Residential condominiums, by contrast, use the percentage of completion (POC) method, such that profits are recognised progressively as the projects are completed.
The COC method used for the completion of Oxley's 728-unit Oxley Bizhub had similarly caused a spike in Oxley's first quarter earnings.
Together, for the half year ended Dec 31, 2013, revenue was $888.2 million, and net profit, $275.9 million.
Net asset value at end-2013 was 16.87 cents, compared to 16.61 cents at end-Sep 2013.
The counter closed on Friday at 64 cents, down 3.5 cents or 5.2 per cent.