SC Global net falls 32% in Q2

http://www.businesstimes.com.sg/sub/...46109,00.html?

Published August 15, 2009

SC Global net falls 32% in Q2


SC Global Developments has reported a net profit fall of 32 per cent, to $7.8 million, for the second quarter ended June 30 from a year ago, dragged down by losses at its Australian unit AVJennings Ltd (AVJ) as well as a higher provision for share-based payments tied to incentive performance targets.

Revenue septupled to $226.4 million from the inclusion of revenue from AVJ. The group had in December 2008 raised its stake in AVJ to 50.03 per cent, making the latter a subsidiary.

Revenue during the quarter included progressive recognition of development projects in Singapore, including The Marq on Paterson Hill and Hilltops, based on progress of construction. Construction of another project, Martin No 38, also progressed to the stage where its maiden revenue recognition was included. In addition, revenue was recognised from Kairong International Gardens in Shenyang, China.

For the half-year ended June, revenue rose to $357.6 million from $75.5 million for H1 2008 due to the consolidation of AVJ's revenue, while net profit fell 40 per cent to $18.3 million.

SC Global said that sentiment in the property sector in Singapore has improved even though the economic statistics are currently not reflective of a full recovery. In addition, the two integrated resorts (IRs) slated to open early next year are anticipated to create further positive spin-offs for the economy.

In Australia, the remainder of 2009 will continue to be challenging for AVJ, but the group expects 2010 to show improved financial and operational performance. AVJ reported an after-tax loss of A$12.7 million (S$15.4 million) for the year ended June 30.

SC Global's total financial liabilities fell slightly to $1.64 billion at end-June, compared to $1.65 billion a year ago. The liabilities are predominantly long term in nature.