DutaLand back to black in 4Q on land disposal gains

KUALA LUMPUR (Aug 30): DutaLand Bhd returned to the black in the fourth quarter ended June 30, 2017 (4QFY17) with a net profit of RM15.08 million versus a net loss of RM5.02 million a year ago, mainly on gain on disposal of land totalling RM26 million.

In an exchange filing, DutaLand said quarterly revenue expanded over eight times in 4QFY17 to RM91.26 million from RM10.72 million in 4QFY16, thanks to higher contribution from the property division, whereby segmental revenue came in at RM80.9 million versus RM100,000 a year earlier.

The group further explained that the revenue from the property division was mainly derived from the disposal of land from the Kenny Heights joint venture project.

For the full year ended June 30, 2017 (FY17), DutaLand registered a net profit of RM13.22 million compared with a net loss of RM3.72 million in FY16, while revenue more than tripled to RM130.38 million from RM37.79 million.

Moving forward, DutaLand said it is negotiating to dispose of its plantation assets for RM750 million and is "exploring various options" to best utilise the potential sale proceeds in order to maximise its shareholder value.

On Aug 22 this year, DutaLand announced that its wholly-owned unit Pertama Land & Development Sdn Bhd (PLD) had accepted the letter of intent dated Aug 18, 2017 from Boustead Rimba Nilai Sdn Bhd (BRN), which is wholly-owned by Boustead Plantations Bhd, for the proposed acquisition of 42 parcels of plantation land owned by PLD.

The indicative cash consideration for the exercise was RM750 million. BRN has paid RM15 million, being the refundable 2% earned interest.

DutaLand closed 2.6% or 1.5 sen lower at 56 sen yesterday, valuing it at RM473.83 million. —

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