Oxley reports 11% lower 1H earnings of $117 mil; proposes 1-for-5 bonus issue

Oxley reports 11% lower 1H earnings of $117 mil; proposes 1-for-5 bonus issue

PC Lee
19/01/18, 07:25 am

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.

2019 GDP growth to ease to 'slightly above midpoint' of 1.3-3.5% forecast: MAS

SINGAPORE (Apr 26): MAS expects GDP growth to come in slightly above the mid-point of 1.3-3.5% forecast range in 2019, as growth momentum of the global economy has moderated at the turn of the year amid sluggish trade. This was according to the Guide to the Macroeconomic Review April 2019, released by the Monetary Authority of Singapore’s (MAS) Economic Policy Group on Friday morning. On the back of easing GDP growth, MAS has decided to maintain the current rate of appreciation of the SGD NEER policy band. This policy stance is consistent with a modest and gradual appreciation path of ....

CapitaLand Mall Trust kept at 'hold' by OCBC and Maybank on higher mall supply, soft retail sector

SINGAPORE (Apr 26): OCBC Investment Research says CapitaLand Mall Trust’s (CMT) 1Q19 results met its expectations. Gross revenue rose 10.0% y-o-y to $192.7 million while NPI jumped 11.5% to $140.1 million, forming 25.1% of its FY19 forecast. See: CapitaLand Mall Trust declares 3.6% higher DPU of 2.88 cents on higher income OCBC says Funan has already achieved high pre-commitment levels of 90%, and is on track to open in the middle of 2019 and will thus contribute to CMT’s earnings progressively from 2H19. However, the near-term outlook remains cautious given the higher supply, ....

Singapore's GLP plans US$3 billion IPO for its US warehouses

(Apr 26): Singapore-based GLP is planning an initial public offering (IPO) for its US operations that could raise about US$3 billion ($4.09 billion). GLP may seek to value the operations at more than US$20 billion, and the firm is said to have confidentially filed with securities regulators for the planned offering. Much of GLP’s US business stems from a 2014 deal to acquire IndCor Properties from Blackstone Group for US$8.1 billion. The offering could help GLP recoup funds after it was taken private by a management-backed consortium from the Singapore stock exchange last year. GLP ....