E&O reports drop of 56% in net profit for 2Q

KUALA LUMPUR: Eastern & Oriental Bhd (E&O) recorded a drop of 56% in net profit to RM5.085 million from RM11.511 million a year ago for its second quarter (2Q) financial results ended Sept 30, 2010, the group announced on Monday Nov 29.

Revenue for the same period dropped by 43% to RM65.814 million from RM114.759 million a year ago.

The group stated that the decrease in profit was due to the lower contribution from the property division on the back of lower revenue recognised coupled with preopening expenses totaling RM4.1 million for Lone Pine Hotel and Straits Quay Retail, which is scheduled to open in the last quarter of 2010.

E&O also stated that despite the lower revenue achieved in the property division, the results was cushioned by improved budget control in certain development projects near completion and increase in group's share of profit in its jointly controlled entities.

The basic earning per share for the quarter dropped to 0.48 sen from 1.62 sen a year ago. The net asset per share increased to RM1.26 from RM1.25 from the preceding year.

E&O is a Malaysia-based company engaged in investment holding and the provision of management services to its subsidiaries. The group has interests in property development and investment in residential and commercial properties; hospitality management and operations of hotels as well as managing and operating restaurants.
Looking for properties to buy or rent? With >150,000 exclusive listings, including undervalued properties, from vetted Pro Agents, you can now easily find the right property on Malaysia's leading property portal EdgeProp! You can also get free past transacted data and use our proprietary Edge Reference Price tool, to make an informed purchase.