OUE bounces back into the black with $1.1b profit in FY14

Thanks the divestment of Mandarin Orchard and Mandarin Gallery.

OUE Limited closed FY14 with a net profit of $1.1 billion, reversing a net loss of S$36.6 million in the previous financial year.

The net profit resulted mainly from unlocking the values of Mandarin Orchard Singapore and Mandarin Gallery upon their disposal to OUE Hospitality Trust and the fair value gains on OUE Bayfront, Lippo Plaza and U.S. Bank Tower.

Revenue from business and operations remained stable at $416.4 million, down marginally by 4.6% from the previous year. This was because of the absence of revenue from the China hotels which were divested in September 2013.

Earnings before interest and tax rose 17.9% from $157 million to $185.1 million in FY14. The increase arises from positive contributions of its various business segments and the Group’s share of fair value gain on investment properties in its associates.