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Wednesday, 14 February 2018

(The Star) E&O third quarter net profit down but revenue higher

PETALING JAYA: Eastern & Oriental Bhd’s (E&O) third quarter net profit dropped 29.28% to RM21.98mil on the back of a 36.41% jump in revenue to RM331.9mil due to higher income tax expense.

Thus, earnings per share (EPS) dropped to 1.68 sen from 2.47 sen previously.

For the nine-month period, net profit jumped 64.88% to RM62.89mil on the back of a 44.31% increase in revenue to RM701.22mil. EPS increased to 4.81 sen from 3.04 sen.

E&O’s key driver which is its property development division, contributed close to 90% of revenue. Two other segments contributing to E&O’s performance were the hospitality and investments divisions.

The group’s positive performance was attributed to the maiden recognition of revenue from the sale of 20% of reclaimed land at Phase 2A of the Seri Tanjung Pinang Phase 2 (STP2A) project in Penang to Kumpulan Wang Persaraan (KWAP or Retirement Fund Inc).

In March 2017, E&O subsidiary Tanjung Pinang Development Sdn Bhd (TPD) – the project proponent for Seri Tanjung Pinang Phase 2 – entered into a conditional sale and purchase agreement with KWAP to dispose of 20% of the STP2A development land over 1.445 million sq ft to KWAP for about RM766mil cash.

Revenue for the third quarter was also accounted from ongoing projects on the first phase of Seri Tanjung Pinang namely The Tamarind executive apartments, Amaris and Ariza Seafront terraced homes.

Princes House, E&O’s project in London’s prime Kingsway area, contributed to the group’s performance through higher sales of completed properties recognised during the quarter under review.

E&O managing director Kok Tuck Cheong said E&O is maintaining its focus and resources on completing the reclamation of Seri Tanjung Pinang Phase 2 which is targeted for the second half of 2018.