http://www.businesstimes.com.sg/arch...falls-20140221

Published February 21, 2014

Chip Eng Seng Q4 net falls

By raphael lim [email protected]


CONSTRUCTION and property group Chip Eng Seng's fourth-quarter net profit fell 11.7 per cent year-on-year, due to lower profits from its construction and property development divisions.

Net profit for the three months ended Dec 31, 2013 was $34.6 million or 5.34 cents per share, against $39.2 million or 5.93 cents per share a year ago.

A lower net fair value gain on the group's investment properties of $13 million, compared to $30 million a year earlier, also affected the bottom line.

Revenue for the quarter fell 22.2 per cent to $173.2 million, dragged down by the property development division, which saw revenue fall 35.5 per cent to $97.2 million.

Net profit for FY2013 fell 9.7 per cent year-on-year to $73.4 million. Revenue was also down 18.6 per cent at $502.5 million. Property development had lower revenue in FY2013 as a completed development project, 33M in Australia, saw final revenue recognition a year earlier.

Construction revenue was higher for both the quarter and the full year, from more active projects.

Earnings per share for the full year was 11.32 cents, down from 12.29 cents. A first and final dividend of four cents per share was proposed.

The stock closed at 71.5 cents yesterday, up half a cent.