Guocoland’s earnings jump 46% from share of associates’ profits

SINGAPORE (Jan 20): Guocoland reported earnings of S$57.1 million for 2QFY2017, a 46% improvement from the earnings of S$39 million (RM121 million) in 2QFY2016.

During the quarter to December, revenue fell 3% to S$232 million. Gross profit fell 22% to S$47.4 million on the back of a change in sales mix.

For the half year period, revenue fell 36% to S$434.7 million because of the sale of an office block in Shanghai Guoson Centre in 1HFY2016 that was not repeated in the current period. Earnings fell 85% to S$82.8 million.

Other income rose 19% to S$24.8 million, owing to a fair value gain on foreign exchange hedges in the current quarter. Administrative expenses rose 5% to S$13.8 million and other expenses fell 92% to S$0.6 million.

Share of profits from associates and joint ventures rose from S$0.7 million to S$44.8 million due to the higher earnings from an associate in Malaysia who completed the disposal of a land parcel in Selangor.

Guocoland said in a filing to the Singapore Exchange that the challenging operating conditions in Malaysia are expected to continue, but added that it will continue to focus on sales and leasing of its current projects.

The group did not declare any dividends for the current financial period.

Shares in Guocoland closed 3.5 Singapore cents higher at S$1.855 on Friday. —  theedgemarkets.com.sg