Eastern & Oriental posts net profit of RM3.16 million

KUALA LUMPUR: Eastern & Oriental Bhd posted net profit of RM3.16 million on the back of revenue of RM41.08 million for its third quarter ended December 31, 2010 (3Q 2011).

The results was lower than the revenue of RM89.99 million and net profit of RM10.49 million posted a year ago, it said on Friday, Feb 25 in a Bursa announcement.

In 3Q 2010, the higher revenue generated were mainly contributed by the property division from the sale of land held for property development, sale of completed units in Dua Residency and higher revenue recognition for Seri Tanjung Pinang projects.

Its jointly controlled projects namely the St. Mary Residences and the on-going Villas by-the-sea

bungalows in Penang have achieved revenue totaling RM87.91 million, lower than the RM106.16 million achieved in the previous year.

The decrease in profit was due to lower contribution from the property division on the back of lower revenue recognised, higher finance costs coupled with pre-opening expenses totaling RM4.3 million for Lone Pine Hotel and Straits Quay Retail.

With the return of positive sentiments in the property market, it expects an improved environment. Launched property development projects such as St. Mary Residences in Kuala Lumpur, Quayside condominiums and other developments in Seri Tanjung Pinang are expected to contribute positively to the company's earnings.

No dividend was declared for the financial period under review.

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