Chip Eng Seng reported Monday its first quarter net profit increased 83.8 percent on-year to S$11.25 million on higher property development revenue and lower tax expenses.
Revenue for the quarter ended 31 March rose 34.2 percent on-year to S$267.27 million, mainly on “robust” contributions from the property development and hospitality divisions, Chip Eng Seng said in a filing to SGX after the market close.
Property development revenue increased 48.9 percent on-year in the quarter to S$204.27 million on a higher percentage of completion of Grandeur Park Residences and Park Colonial, the filing said.
Revenue from hospitality increased 19.7 percent on-year to S$21.7 million in the quarter on the full-quarter contribution from the Mercure & Ibis Styles Grosvenor Hotel in Adelaide, South Australia, which was acquired in March 2018, the filing said.
However, revenue from construction fell 10.03 percent on-year to S$37.7 million, largely on lower revenue recognized from Tampines N6C1A/1B and Woodlands N1C26 & N1C27, which were completed in in 2018, the filing said.
Income tax expense dropped 71.5 percent on-year to S$1.17 million on a lower contribution from Australian entities, which are subject to higher tax rates, Chip Eng Seng said.
In addition, the company posted a year-earlier foreign exchange loss of S$4.89 million, compared with no loss in the first quarter of 2019 as the Australian dollar strengthened.
While you’re here, we’re hoping you can help us out.
Shenton Wire has been providing you with quick news and market analysis. Help us continue to bring you the news you’ve come to expect and to expand our reach beyond Singapore.
Your monthly contribution will directly fund our journalism.
You can check your existing account here. You can also contact us about other contribution levels or for corporate subscriptions and syndication queries.