SINGAPORE (Aug 14): Sinarmas Land reported 1H19 earnings increased nearly sevenfold to $330.8 million from a year ago on exceptional gain.

In 1H19, revenue increased 46.0% to $560.9 million from $384.3 million a year ago, mainly due to higher sales of commercial and industrial land parcels in Indonesia and higher sales of residential units in BSD City, Indonesia.

Cost of sales increased 55.2% to $177.2 million, resulting in gross profit for 1H19 coming in 42.1% higher at $383.8 million a year ago.

Total operating expenses fell 7.9% to $113.9 million, with selling expenses dropping 9.2% to $43.6 million and general and administrative expenses declining 7.0% to $70.3 million.

Other expenses came in 28.2% lower at $38.0 million, as finance costs increased 19.3% to $87.1 million.

In addition, Sinarmas Land also recorded a gain from exceptional items of $373.7 million, which was absent last year, due to gain on equity interest, negative goodwill and from the effect of restricting an associated company.

As at end of June, cash and cash equivalents stood at $947.8 million.

Margaretha Widjaja, executive director of Sinarmas Land and vice-chairman of SML Indonesia Division, says, “With the successful re-election of President Joko Widodo for a second five-year term, we expect his economic policies to continue boosting investment into infrastructure developments, introducing tax breaks for some industries and possibly, corporate tax cut.”

“The ongoing uncertainty regarding Brexit and trade war between US and China has resulted in the deprecation of the British Pound and Chinese Renminbi which is expected to negatively impact our international division. Hence, the Group will closely monitor macro-economic indicators while seeking new investment opportunities outside Indonesia,” adds Widjaja.

Shares in Sinarmas Land closed at 23 cents on Wednesday.