OUE 2Q19 net profit surges more than 11 times on divestment proceeds

The OUE Bayfront building in Signapore’s central business district. Credit: Shenton WireThe OUE Bayfront building in Signapore’s central business district. Credit: Shenton Wire

OUE reported Tuesday its second quarter net profit surged more than 11 times on-year to S$60.86 million, from S$5.32 million in the year-ago period, mainly on a one-off gain of S$136.6 million for the disposal of Aquamarina Hotel.

Revenue for the quarter ended 30 June jumped 89.4 percent on-year to S$285.3 million, the property developer said in a filing to SGX.

“The revenue growth was mainly due to higher contribution from the development Pproperty division; partially offset by lower contributions from the investment properties and healthcare divisions,” the filing said.

The development property division posted revenue of S$151.1 million, up from nil in the year-earlier quarter, on the completion of the sales of some OUE Twin Peaks units sold under deferred payment plans.

The hospitality division posted revenue of S$54.4 million for the quarter, up S$400,000 on-year.

The investment properties division posted revenue of S$66.4 million, down 4.9 percent on-year, on a lower contribution from the U.S. Bank Tower property.

The healthcare division’s revenue contribution declined, mainly on a lower contribution from the China operations, the filing said.

OUE declared a dividend of 1 Singapore cent a share, unchanged on-year.

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