Selangor Properties 3Q net profit up 182% to RM33.3 million (Sept 25, 2009)

KUALA LUMPUR: Selangor Properties Bhd posted net profit of RM33.3 million for the third quarter ended July 31, up 182% from RM11.8 million a year ago, boosted by foreign exchange gains and higher profits from property development.

It said today revenue rose 36.5% to RM70.55 million from RM51.68 million. Earnings per share were 9.69 sen versus 3.44 sen. Selangor Properties said pre-tax profit was RM41.94 million compared with RM13.1 million a year ago.

"The higher profit achieved for the current quarter was mainly due to foreign exchange gain of RM18 million as a result of the strengthening of the Australian Dollar and higher profit from property development," it said.

In the second quarter ended April 30 it posted a pre-tax loss of RM31 million due to the provision of impairment loss on its offshore investment in real estate funds.

However, for the nine-months, it was still in the red with net losses of RM3.54 million compared with RM85.65 million in earnings in the previous corresponding period. Revenue was RM166.58 million versus RM146.71 million.

On the outlook, Selangor Properties said the current global economic meltdown had resulted in provision for impairment loss on its offshore investment in real estate funds.

"Accordingly, the group expects the current situation to affect the financial performance for the current financial year. However, the group will remain cautious and will strive to preserve shareholder value," it said.