http://www.businesstimes.com.sg/arch...s-q2-loss-217m

Published August 11, 2012

SC Global posts Q2 loss of $21.7m

By jasmine ng


SC Global Developments swung into the red in the second quarter ended June 30, 2012, recording a net loss of $21.72 million, compared with a net profit of $46.29 million in the year-ago period.

The loss was mainly attributed to an allowance for asset impairment of $65.1 million made by its subsidiary, AVJennings (AVJ). Excluding these allowances, SC Global would have been profitable for Q2, it said yesterday.

Group revenue, which mainly comprises contributions from sales of new units and progressive recognition of the group's development project, Seven Palms Sentosa Cove, fell 53 per cent to $123.09 million.

This is due to lower sales and the absence of significant contributions from the progressive recognition from Hilltops and Martin No 38, SC Global said.

Total operating expenses, including administrative expenses, rose to $89.22 million in Q2 from $27.76 million last year. This was mainly due to the allowances for asset impairment made by AVJ.

For the fiscal first half, SC Global posted a net loss of $31.7 million, compared with a net profit of $119.1 million a year earlier. Revenue for the same period was $172.84 million, down 64 per cent from $483.02 million a year earlier.

With the introduction of several rounds of property-cooling measures over the past two years, the most recent in December 2011, SC Global said that sentiment in the residential property market remained cautious.

As the group adopts the new INT FRS 115 accounting standard, it continues to move from having more finished units on hand rather than developments under construction.

Hence, variations in performance from quarter to quarter are more dependent on the timing of sales and the increasing proportion of overseas contributions, SC Global said.

Shares of SC Global closed yesterday at 97.5 cents, up half a cent.