GuocoLand net profit jumps 41% in Q2

Singapore Companies
Published February 15, 2007

GuocoLand net profit jumps 41% in Q2

By MICHELLE QUAH


QUEK Leng Chan's Singapore-listed property arm GuocoLand has reported a 41 per cent jump in net income for its second quarter ended Dec 31, 2006 to $44.6 million, from $31.7 million the year before.

The better numbers were despite slimmer revenues in the quarter. GuocoLand's revenues dropped 41 per cent year-on-year to $99.6 million in the December 2006 quarter, which the group said was mainly due to lower takings from the sale of its property development projects in Singapore and China.

The drop in revenues was compensated by a 200 per cent jump in other operating income, which increased to $39.4 million in Q2, from $13.1 million the year before. This was thanks to GuocoLand recognising a $19.3 million profit from the sale of its stake in BIL International, and higher net forex gains of $9.7 million from the revaluation of bank loans denominated in US dollars.

The contribution from the group's associates and jointly controlled entities to profit after tax also increased by 50 per cent to $6.9 million - mainly due to a higher profit contribution from GuocoLand's 40 per cent-owned associate, Razgrad Pte Ltd, which owns The Ladyhill development.

For the half-year to Dec 31, 2006, GuocoLand's net profit amounted to $52.7 million, up from $43.5 million the previous year. But its revenues dropped 16 per cent to $187.8 million.

Going forward, GuocoLand said it would time its Singapore property launches to catch the expected broad-based recovery in demand in the residential property market, and continue to replenish its land bank through acquisitions.

The group said its outlook on the China and Malaysia property markets remains positive.

It believes that, barring unforeseen circumstances, it will report 'satisfactory results' for the third quarter ending March 31 and for the financial year ending June 30, 2007.