Oxley fiscal 3Q net profit more than doubled despite 75 percent revenue drop

The Chevron House building at Raffles Place in Singapore’s central business district (CBD).The Chevron House building at Raffles Place in Singapore’s central business district (CBD).

Oxley Holdings reported Monday its fiscal third quarter net profit jumped 118 percent on-year to S$66.1 million, mainly on fair value gains on investment properties in Dublin and Singapore.

That was despite revenue for the quarter ended 31 March dropped 75 percent on-year to S$59.9 million on lower contributions from a United Kingdom project, Oxley said in a filing to SGX.

Other gains for the quarter increased to S$101.5 million, from S$33.1 million in the year-ago quarter, mainly on the fair value gain on the Chevron House commercial building, located at 30 Raffles Place in Singapore, Oxley said.

Oxley has sold the Chevron House property for S$1.025 billion, with the transaction expected to be completed in 2020.

“Oxley has seen good sales progress in its development projects in Singapore and across the globe since the beginning of the financial year,” Ching Chiat Kwong, executive chairman and CEO, said in the statement.

“The Singapore residential portfolio has achieved commendable sales of more than 2,168 units given the current market sentiments. We expect the sales momentum to improve further before the end of the current financial year,” Ching added.

Oxley said it had total unbilled contract value of S$3.7 billion, with around S$2.0 billion from projects in Singapore.

In its outlook, Oxley pointed to uncertainty from the U.S. trade war with China and from Brexit.

“Sentiments for new home purchases in Singapore are muted due to the lingering effect of the cooling measures introduced in July 2018 and the increased supply in the residential market has weighed down on prices,” Oxley said.

“In London, property prices are affected by uncertainties over Brexit though Dublin in Ireland is enjoying positive spillover effects from Brexit. In other parts of Asia, property expenditure is likely to be impacted by the China economy and their capital controls as the Chinese are significant investors in Asia property markets,” it added.

 

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