Oxley posts 163% rise in 2Q earnings

SINGAPORE (Jan 20): Second quarter earnings for homegrown property developer Oxley more than doubled to S$123.8 million (RM386 million), or 4.23 Singapore cents per share, from S$47 million a year ago, on higher sales.

Revenue in the three months to December more than trebled to S$605.7 million mainly due to recognition of revenue from Oxley Tower upon its completion and the handover of certain plots in The Royal Wharf (Phase 1A) handed over to the buyers.

Revenue recognition on the sold units of five of its mixed projects in Singapore and rental income mainly from the group’s 70% stake in Space@Tampines (the industrial property was completed in June 2015 and has occupancy rate of 95%) also lifted sales.

For 1H2017 ended December, earnings rose 58% to S$130.9 million, while revenue rose 19% to S$732.2 million.

As at end December, the group had total unbilled contract value of S$2.60 billion, of which S$0.49 billion are from projects in Singapore and S$2.11 billion are from projects overseas. Revenue to be recognised by the group amounted to S$3 billion.

Ching Chiat Kwong, Oxley’s executive chairman and CEO, said, “We made consistent good progress and achieved several milestones during the past few quarters. The geographical expansion and diversification will not only mitigate single country risk and generate more growth opportunities, but should also enhance our revenue stream and continually improve our financial position. With our expertise, diligence and dedication, Oxley has gradually transformed from a Singapore-based developer to a strong property group with global presence.”

Oxley has declared an interim dividend of 0.5 Singapore cent per share, down from 0.75 Singapore cent a year ago.

The stock closed at 43.5 Singapore cents. — theedgemarkets.com.sg