Construction company Low Keng Huat reported earnings of $51.9 million in 1H20 ended July, from $0.8 million a year ago.

The significant increase was mainly due to the gain on sale on Low Keng Huat’s equity stake in Perennial Shenton Holdings (PSH) of $50 million during the period.

Excluding the sale, the company’s earnings would have increased by $1.1 million to $1.9 million in 1H20.

Earnings per share (EPS) for 1H20 stood at 7.02 cents from the 0.11 cents the year before.

Revenue grew by 33% y-o-y to $22.9 million. The growth was attributable to the increase in revenue of $9.9 million in the development segment due to sales at Uptown @ Farrer, which was launched for sale in 3Q19.

The growth in revenue was offset by the $2.1 million decrease each in the investment and hotel segments. The decrease in both segments were attributable to the rental rebates granted to tenants at the retail mall in Paya Lebar Square, and the decrease in occupancy at Duxton Perth Hotel respectively.

The decrease in the hotel segment was slightly offset by the increase in occupancy at Citadines Balestier.

Cost of sales increased 58% y-o-y to $16.6 million due to higher sales in the development segment.

Share of results of associated companies and joint ventures registered profit of $53.9 million mainly due to the sale of equity stake in PSH, compared to the $2.0 million loss in FY19.

As at July 31, cash and cash equivalents stood at $130.6 million.

Shares in Low Keng Huat closed flat at 39.5 cents on September 14.