SINGAPORE (Nov 1): Oxley Holdings saw earnings for 1Q18 surge nearly sevenfold to $48.7 million from $7.1 million a year ago on higher revenue.

This brings its earnings per share (EPS) for 1Q18 to 1.67 cents compared to 0.24 cents in the same period a year ago.

Revenue over the quarter more than doubled to $310.6 million compared to $126.5 million in the previous year, due to recognition of revenue from the handover of certain plots in The Royal Wharf Phase 1A; units sold in two mixed-residential projects in Singapore, Floraville/Floraview/Floravista and The Rise @ Oxley-Residences; as well as rental income from investment properties.

In line with the higher revenue, cost of sales widened 227% to $257.7 million from $78.9 million in 1Q17.

An increase in share of profits from equity-accounted joint ventures and associates by $13.42 million was also recorded over the quarter, mainly contributed by Galliard and a joint venture project in Cambodia amounting to $5.63 million and $7.27 million respectively.

Gross profit grew to 11% to $52.9 million compared to $47.5 million a year ago while gross profit margin increased to 38% from 17%.

As at end Sept, Oxley had cash and cash equivalents of $295.7 million, while net gearing was 2 times compared to 1.9 times as at end June.

The group has a total unbilled contract value of $2.30 billion, of which $0.3 billion is attributable to projects in Singapore while about $2 billion are attributable to overseas projects, where revenue will only be recognised upon TOP.

Noting steady PATMI delivery over the past few quarters, group executive chairman and CEO Ching Chiat Kwong says Oxley is also progressing well in the preparation for the launch of its Singapore projects around mid-2018.

“Among our investment property assets, Novotel Singapore on Stevens has commenced operations and Mercure Singapore on Stevens will start operation soon. With a diversified development and investment portfolio, Oxley is well on its way to becoming a strong international property developer with good earnings visibility and growing recurring income stream,” says Ching.

Shares in Oxley closed 0.7% higher at 73 cents on Wednesday.