OUE 1Q 2010 Profit Before Tax Up by 174% to S$23.7 Million
SINGAPORE, May 10 /PRNewswire-Asia/ -- Overseas Union Enterprise Limited ("OUE" or the "Group") has achieved a profit before tax ("PBT") of S$23.7 million in 1Q 2010 (excluding revaluation and impairment write back), a 173.9% increase from 1Q 2009. Including unrealised fair value gains on revaluation of the Group's investment properties and write-back of impairment on the Group's development property totalling S$187.5 million taken in 1Q 2010, the Group posted a PBT of S$211.1 million.
Key Points:
-- Profit before tax (excluding revaluation gain and impairment write back)
rose 173.9% from S$8.6 million in 1Q 2009 to S$23.7 million in 1Q 2010,
an increase of S$15.1 million.
-- Significant growth largely attributable to strong performance by the
Group's Hospitality Division and contributions from Mandarin Gallery
which commenced retail operations in late November 2009
-- The Group to leverage Singapore's positive economic environment and
continuous growth in the tourism sector by re-investing income to
expand its property portfolio, maintaining 90-95% of assets in
Singapore
Financial Highlights
1Q 2010 1Q 2009 % Change
S$'000
Revenue 47,996 32,948 45.7
Gross profit 26,465 15,786 67.6
Profit from operations 13,998 5,787 141.9
Other gains 189,866 -- n.m.
Profit before income
tax ("PBT") 211,142 8,637 2,344.60
PBT excluding revaluation
gains and write back of
impairment 23,660 8,637 173.9
The Group's high profit levels were largely fueled by the strong performance of Meritus Hotels & Resorts, its Hospitality Division which comprises prime properties in the business and tourism hubs of Singapore, China, and Malaysia.
Also contributing favourably is the Group's retail operations under wholly-owned Mandarin Gallery, a luxury mall that launched in late November 2009 and is strategically annexed to the flagship Mandarin Orchard Singapore hotel on Orchard Road.
In total, the Group recorded a revenue of S$48.0 million for 1Q 2010, an increase of S$15.1 million (up 45.7% year-on-year) from S$32.9 million over the same period of the previous financial year.
Other gains of S$189.9 million comprised mainly of revaluation gains from the Group's investment properties (S$135 million) and the write-back of an impairment loss on the Group's development property ($52.5 million).
As a result, the Group recorded a PBT of S$211.1 million in 1Q 2010 (an increase of S$202.5 million over 1Q 2009) and continues to maintain a robust balance sheet with a net asset value per ordinary share of S$11.30 as at 31st March 2010.
Sustaining Growth
"We are delighted that we are once again able to strongly demonstrate how very well-positioned we are for continued growth and strategic diversification," said OUE Executive Chairman Stephen T. Riady.
"Whilst we remain focused on maintaining the majority of our asset base in Singapore, we will also continue to identify underpenetrated markets and develop world-class projects with the end goal of delivering superior value to our shareholders."
OUE is a key property player in Asia and one of the very few integrated developers in Singapore boasting a complete portfolio of prime assets across the retail, commercial, residential, and hospitality sectors.
In addition to Meritus Hotels & Resorts and Mandarin Gallery, the Group is also behind Singapore's high-end upcoming commercial and residential developments that include 50 Collyer Quay, One Raffles Place, and 25 Leonie Hill.
Competitive Strengths
OUE's diversified business model and capabilities across multiple market segments make it uniquely poised to pursue and build a stable of high-yield investments.
Spurred by Singapore's positive economic environment and forecasts of continuous growth in the tourism sector, amongst the Group's strategies is re- investing income to expand its property portfolio, maintaining 90-95% of its assets in Singapore.
About Overseas Union Enterprise Limited
Singapore-based Overseas Union Enterprise Limited (OUE) is an Asian real estate company that is growing in size and geography. Leveraging its hotel business, OUE is diversifying and enlarging its portfolio to comprise a mix of retail, commercial, and residential properties. OUE invests in value-enhancing development projects that are situated in prime locations. The aim is to deliver the ultimate experience to the end customers, whether they be hotel guests, home buyers or tenants for the retail and commercial spaces.
For the latest news from OUE, visit us at http://www.oue.com.sg .
SOURCE Overseas Union Enterprise Limited
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