Chip Eng Seng Corporation, the construction and property group, has reported a 76% surge in net profit to $47.2 million in the six months ended 30 June 2010 (1H 2010) and a 55% surge in 2Q 2010 net profit to $22.4 million.

2Q 2010 group revenue rose 84% to $125.0 million, boosted mainly by property sales as well as higher construction activities.

Property development revenue surged 681% to $40.5 million, accounting for almost a third of group revenue. This was mainly attributed to sales of units at its 100%-owned development project, Oasis@Elias, which was launched in the second half of 2009.

As at 30 June 2010, 66% of the project has been sold.

Revenue from construction activities jumped 35% to $84.1 million due to progress recognition of ongoing projects. These projects include The Parc Condominium, City Vista Residences, Grange Infinite and HDB projects, such as, Queenstown RC25, Sengkang N4C3, Punggol West C25 and precast projects.

As a result, group gross profit soared six times to $10.3 million from $1.7 million previously. Share of results of associates rose 24% from $16.1 million to $20.0 million due to the recognition of profits for its joint development projects with strategic partners, namely the Parc Condominium, City Vista Residences and Grange Infinite. Consequently, Group pre-tax surged 61% to $23.6 million.

For the six months ended 30 June 2010 (1H 2010), group revenue jumped 53% to $225.0 million, up from $147.1 million. Gross profit more than quadrupled to $13.6 million from $3.2 million, mainly due to profit recognition of Oasis@Elias, ongoing construction projects and precast projects.

Share of results of associates rose 48% to $45.9 million and pretax profit surged 78% to $49.5 million. Consequently, net profit was up 76% to $47.2 million.

Cash and cash equivalents stood at $75.8 million as at 30 June 2010. Total bank borrowings were $179.0 million as at 30 June 2010, up from $113.5 million as at 31 December 2009.