Mainboard-listed Overseas Union Enterprise says net profit surged 16 times to $127.1 million for the three months ended 30 Sept 2010 (3Q2010), up from $7.5 million in the corresponding period last year (3Q 2009).

The robust performance came on the back of a 52.9% rise in the group 3Q 2010 revenue to $51.2 million, driven by improved contributions from the Hospitality division and Retail division, Mandarin Gallery.

Against an improved global economic outlook, the Hospitality division, which has a portfolio of hotels in Singapore, China and Malaysia, achieved sales of $42.4 million, a 29.3% growth from $32.8 million a year ago.

Also contributing favourably to the group’s performance was its retail division helmed by wholly-owned Mandarin Gallery. Rental income from Mandarin Gallery reached $8.2 million in 3Q 2010.

Fuelling the group’s 3Q 2010 net profit was a fair value gain of $128.4 million, mainly from its recent acquisition of DBS Towers 1 & 2.

The group has a healthy balance sheet and net cash position of $193.5 million.

OUE says the positive economic outlook, together with the rise in visitor arrivals driven by the two IRs are expected to benefit the group’s hospitality and retail operations in Singapore.