E&O records profit after tax of RM11.848 mil in 3Q10

PETALING JAYA: Eastern & Oriental Bhd (E&O) achieved a profit after tax of RM11.848 million for its third quarter ended Dec 31, 2009, compared with a loss of RM3.978 million recorded in the corresponding period of financial year ended March 31, 2009.

The company recorded a quarter-on quarter increase in revenue of 28% to RM90 million from RM70.162 million.

“The company’s significantly improved results is attributable to its effective pre-emptive balance sheet management strategy coupled with a higher contribution from the properties and hospitality divisions on the back of increased revenue and lower finance costs,” the company said in a statement on Feb 23.

The balance sheet management strategy included, among others, a capital injection of RM236 million from the Group’s recently completed irredeemable convertible secured loan stocks issue exercise.

Moving forward on this strong footing, E&O has continued with several property launches in 2010.

In early February, E&O launched the first block of its landmark Quayside Seafront Resort Condominiums project in Seri Tanjung Pinang, achieving a take-up rate of more than 50% out of the total 298 units. Buoyed by this encouraging response, E&O expects to launch the second tower by the second quarter of 2010.

Set within 21 acres, Quayside is a one-of-its-kind luxury seafront condominium in Malaysia, featuring a 4.5-acre waterpark exclusively for residents.

Designed by world-class US-based landscape architects Geyer Coburn Hutchins LLC, the waterpark comprises an interconnected collection of pools over seven distinct activity areas while the adjoining green open park includes a 1.4km jogging and cycling track.