SINGAPORE (Jan 19): Oxley Holdings reported a 45% drop in 2Q18 earnings to $68 million from a year ago. This brings 1H18 earnings to $116.8 million a year ago, down 11% y-o-y.

Earnings per share was 3.82 cents for 1H18, compared to 4.06 cents for 1H17.

The homegrown property developer has declared an interim dividend of 0.72 cents and a 1-for-5 bonus share issue has been proposed.

Revenue for 2Q18 came in 33% lower at $406.1 million while revenue for 1H18 dipped 2% to $716.7 million.

Half-year revenue comprised revenue recognised upon the handover of completed units in The Royal Wharf Phases 1A and 1B, revenue recognised on sold units at two mixed-residential projects in Singapore, Floraville/Floraview/Floravista and The Rise @Oxley-Residences, according to the progress made in the construction of these developments, and rental income from investment properties and service income from hotel operations.

1H17 revenue was also boosted by the recognition of revenue upon the completion of Oxley Tower in Dec 2016 which was absence in 1H18.

Gross profitability was $121.7 million for 1H18, 51% lower than that of 1H17. Gross profit margin came in at 17% for 1H18, as compared to 34% for 1H17. The decrease in gross profit and gross profit margin was due to higher gross margin of the Oxley Tower project versus the lower gross margin of The Royal Wharf project.

Share of profit from equity-accounted associates and joint ventures was $74.8 million fro 1H18, attributable to the share of profit from The Bridge, a joint venture project in Cambodia, and the Galliard Group.

As at Dec 31, Oxley had cash and cash equivalents of $272.2 million, and total borrowings of $2,533.4 million. Net gearing was maintained at 1.9 times.

As at end Dec, the group has total united contract value of $1.78 billion, of which $0.15 billion was attributable to the projects in Singapore and $1.63 million was attributable to overseas projects.

In Singapore, other than T-Space which was 66% sold, all the launched projects were completely sold. Oxley's hotels --Novotel Singapore on Stevens and Mercure Singapore on Stevens -- have started operations in October 2017 and December 2017 respectively.

In London, more than 3,100 homes or 93% of the Royal Wharf project have been sold and the group is on track to hand over the remaining units of Phase I and Phase II of the project by the second quarter of 2018, and Phase II by 2019.

The construction of Dublin Landings, the mixed-use development in Dublin's business district, has been progressing on schedule.

The sales of other projects, including The Peak in Cambodia and Oxley Convention City in Indonesia, have also seen steady progress.

Year to date, shares in Oxley are up 17.5% to 67 cents.