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Thread: Bukit Sembawang posts $61.4m Q4 loss

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    Default Bukit Sembawang posts $61.4m Q4 loss

    http://www.businesstimes.com.sg/sub/...34345,00.html?

    Published May 23, 2009

    Bukit Sembawang posts $61.4m Q4 loss

    Net loss due mainly to a $70m provision for foreseeable losses for its Fairways residential project


    BUKIT Sembawang Estates has posted a $61.4 million net loss for the fourth quarter ended March 31, 2009, against a $3.5 million net profit in the same year-ago period.

    The red ink flowed mainly from a $70 million provision for foreseeable losses for its Fairways residential project at Telok Blangah as a result of the weakening property market, the company said in its results statement yesterday.

    Q4 saw an $8.7 million gain on disposal of available-for-sale financial assets.

    For the year ended March 31, Bukit Sembawang posted a $48.4 million net loss, against a net profit of $74.9 million in the preceding year.

    Besides the $70 million provision for the Fairways site, the weaker full-year bottomline was due to the absence of a one-time capital gain arising from the sale of HSBC shares in the previous year; reduced development profit recognised on Mimosa Terrace projects in the latest period; and the suspension of capitalisation of borrowing costs, property tax and other development costs on certain development projects, which have been deferred.

    Last month, the group issued a profit warning that it expected to report a loss for the year ended March 31, and that this will be due primarily to the recognition of an allowance for foreseeable losses for a development project as a result of the weakening property market.

    It did not identify the project, although some analysts had surmised it was the Fairways property. It bought the freehold plot for $785 psf per plot ratio in 2007 during the en bloc sale bull run.

    Looking ahead, Bukit Sembawang said that it has launched the marketing of Verdure at Holland Road, where already 90 per cent of the apartment units have been sold.

    'We will also continue to market the landed properties in Seletar Hills and Sembawang areas in the current financial year. However, profit from property development based on the percentage of completion method will be determined by the progress of construction of development projects,' the group noted in its results statement.

    'Parc Mondrian and Paterson Suites will be completed after the financial year ending March 31, 2010 and the units of the other development projects to be sold will be in the early stage of construction,' it added.

    The group is proposing a two cents per share final cash dividend based on the enlarged issued capital base following the rights issue last month.

    Revenue for Q4 ended March 31, 2009, slipped 59.1 per cent to $4.9 million, due mainly to reduced development revenue recognised (based on percentage of completion method) on Mimosa Terrace projects.

    Full-year revenue fell 17.2 per cent to $62.6 million.

    The group's net asset value per share stood at $3.77 as at March 31, 2009, down from $4.53 a year earlier.

    The stock closed four cents higher at $3.10 yesterday.

    The group raised $245.7 million net proceeds from its recent rights issue.

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    http://www.straitstimes.com/Money/St...ry_380527.html

    May 23, 2009 Saturday

    Bukit Sembawang posts loss of $61m


    BUKIT Sembawang Estates yesterday reported a net loss of $61.4 million in the fourth quarter, reversing from a profit of $3.5 million previously.

    The big loss was due to a $70 million provision in foreseeable losses, because of its expensive purchase of Fairways Condo in Telok Blangah at the height of the en bloc frenzy in 2007.

    Revenue for the three months ended March 31 fell by 59.1 per cent to $4.9 million. This was attributed to reduced development revenue recognised on its Mimosa Terrace housing projects.

    For the full year, Bukit Sembawang suffered a net loss of $48.4 million, against a profit of $74.9 million in the previous year.

    Apart from the Fairways blight, the poorer performance was also due to the absence of a huge one-off gain this year that had padded profits last year. The developer had realised a gain of $46.7 million last year from the sale of its investment in HSBC shares.

    Revenue dropped by 17.2 per cent to $62.6 million.

    Full-year loss per share was 44 cents compared to profit of 70 cents previously, while net asset value per share shrank to $3.77 from $4.53.

    The company has proposed a final dividend of two cents a share, down from seven cents previously. A rights issue last month has enlarged the company's issued share capital. The dividend will be paid to all outstanding shares.

    Looking ahead, Bukit Sembawang said the current sentiment in the residential property market remains subdued amid the uncertainties in global financial markets and the slowing United States economy.

    However, its Verdure condominium project in Holland Road is already 90 per cent sold at a median price of about $1,416 per square foot.

    It said it will continue to market its landed homes in the Seletar Hills and Sembawang areas in the current year.

    Bukit Sembawang shares yesterday rose four cents to $3.10.

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