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GuocoLand's net profit up 58% to $67.6m in Q2
But half-year profits slumped 84%.
GuocoLand has posted an improvement in net profits for the quarter ending last December, up 58% to $67.6m from $42.8m a year ago.
This came as its revenue contracted 3% to $232m in the said quarter, due to different sales mix in two periods of review. Other income increased by 19% to $24.8m mainly due to the fair value gain on foreign exchange hedges in the current quarter.
"In the previous corresponding quarter, there was a fair value loss on the foreign exchange hedges of $7.1 million, recorded in other expenses.," the group said.
Meawhile, finance costs increased by 10% to $18.9m. Share of profit from associates and joint ventures increased by $44.1 million in the current quarter. This was due to higher profit contributed by an associate in Malaysia, arising from the completion of its disposal of a parcel of land located in Mukim and District of Sepang, Selangor.
In terms of half-year period, GuocoLand recorded a 36% decline to $434.7m, mainly due to the absence of contribution from the sale of an office block in Shanghai Guoson Centre in the previous corresponding period. On the bottomline, there was an 84% decline to $91.5m
Looking forward, the group expects a rough road given the fall in Singapore's private residential property prices.
"Flash estimates released by the Urban Redevelopment Authority showed a decline of 0.4% for the 4th quarter 2016, and a decline of 3.0% for full year 2016. While the decline for the full year was smaller than the 3.7% decline recorded in 2015, property consultants do not expect a recovery in home prices in the near term given the muted economic growth outlook and job market uncertainties. Office and mall vacancies have been on the rise and are expected to increase further. However, the office and retail components of the Group’s Tanjong Pagar Centre, which received Temporary Occupation Permits in October 2016, have achieved commitment levels in excess of 80%," the group said.
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