SINGAPORE (Jan 16): Property developer GuocoLand Limited reported earnings of $32.4 million for 2Q20 ended December, nearly three times its earnings of $10.9 million a year ago. 

This brings the group’s half year earnings to $74.5 million, double that of $37 million for the corresponding period in the previous year. 

Revenue for the quarter saw a 110% surge to $299.6 million from $142.9 million in the preceding year. This was attributable mainly to higher progressive recognition of sales from the group’s residential development Martin Modern.

Correspondingly, gross profit doubled to $89.7 million from $44.1 million in 2Q19. 

Administrative expenses increased 36% to $26.7 million in tandem with higher sales activities. Other expenses tripled to $13.3 million on the back of higher fair value losses on derivative financial instruments. 

Meanwhile, finance costs for the quarter fell 23% to $26.3 million due to higher capitalisation of finance costs compared to the previous year. 

Share of profits of associates and joint ventures fell 89% to $1.0 million due to a combination of lower contributions from the group’s Shanghai joint venture, as well as lower share of losses from a joint venture in Singapore which had reportedly incurred costs for the group. 

GuocoLand also booked a tax expense of $6.9 million for the quarter compared to a tax credit of $6.4 million in the previous year, which had arose from the reversal of overprovision. 

Earnings per share for 2Q20 increased to 2.49 cents from 0.55 cents the previous year. 

As at end-December, cash and cash equivalents stood at $698 million. 

In its outlook statement, GuocoLand noted that latest flash estimates released by the Urban Redevelopment Authority had shown that overall private residential property prices for the quarter had increased marginally by 0.3% for the quarter, slower than the 1.3% and 1.5% increases reported in the previous two quarters of 2019. 

“However, prices of non-landed residential properties in the Core Central Region and Rest of Central Region have decreased by 3.7% and 1.4% respectively, while prices of non-landed residential properties in the Outside Central Region have increased by 2.9%,” noted the group. 

Meanwhile, GuocoLand notes that new home prices in Chongqing, China continue to be on the rise, increasing by 0.5% and 8.4% on a month-on-month and year-on-year basis respectively in November 2019. 

Shares in GuocoLand closed one cent higher, or 0.5% up, at $1.92 on Thursday prior to the results announcement.