MCL's profit falls in absence of 05's US$12.8m writeback

Singapore Companies
Published November 11, 2006

MCL's profit falls in absence of 05's US$12.8m writeback

By UMA SHANKARI

PROPERTY group MCL Land yesterday said that in the absence of exceptional items, net profit for its third quarter ended Sept 30 fell 60 per cent to US$5.4 million, from US$13.4 million for the corresponding three months last year.

The third-quarter profit of 2005 was boosted by a US$12.8 million write-back in provisions for foreseeable losses of development projects. Revenue for the third quarter of 2006 hit US$9.15 million, up from US$425,000.

On a nine-month basis, net profit fell 16 per cent to US$12.14 million from US$14.38 million and revenue was US$13.29 million, up from US$1.51 million.

The company reported that it continued to make good progress with the pre-sales of its Singaporean properties, with some 99 per cent of units on offer sold as of Sept 30.

Both The Calrose (421 units) and Mera Springs (129 units) are fully sold. Also, the 400 units in The Esta and 95 units in The Grange, a 53.5 per cent joint venture (JV) project, are almost all sold as well ahead of their scheduled completion in 2008, said MCL.

Similarly, MCL's JV development with the Landmarks Group in Malaysia has also performed well.

MCL also said that it has received approval from the Strata Titles Board for its purchase of Boon Teck Heights, which is scheduled for completion in January 2007.

With this latest acquisition, MCL Land will have acquired seven sites since 2005 for a total cost of US$271.8 million. These sites provide a maximum permissible gross floor area of 1.2 million square feet, to be developed over the next few years, said the company.

'The prospects for the residential property market in Singapore are expected to remain positive as economic growth is sustained,' said MCL. 'The group's overall performance for the full year should benefit from completion of MeraPrime in Singapore and Desa Villas and Desa Putra in Malaysia.'

Third-quarter earnings per share fell to 1.46 US cents, from 3.61 US cents previously, while net asset value per share climbed to US$1.12 from $1.07 at the end of 2005.

MCL's stock shed one cent to close at $1.69 yesterday.