OUE profit surges ten-fold to $60.86m in Q2

It was boosted by its disposal of Aquamarina Hotel Private Limited.

OUE’s profits skyrocketed by over a ten-fold to $60.86m in Q2 from $5.32m in 2018, all thanks to the one-off gain arising from the disposal of Aquamarina Hotel Private Limited (AHPL).

However, this was partially offset by fair value loss on investment properties and lower earnings before interest and tax (EBIT) in the current quarter. Interim dividend for the period is at $0.01.

Meanwhile, its revenues also surged 89.4% YoY to $285.31m in the same period from $150.68m in 2018. This was attributed to higher contribution from the development property division and offset by lower contributions from the investment properties and healthcare divisions.

The development property division’s revenue was at $151.1m in Q2, comprising the sale completion of certain OUE Twin Peaks units sold under deferred payment schemes. Revenue from the hospitality division improved $0.4m to $54.4m over the same period.

Revenue from the investment properties division was 4.9% YoY lower at $66.4m, mainly due to lower contribution from US Bank Tower. The group’s healthcare division recorded a decline in revenue, dragged down by lower contributions from its operations in China.

The group’s EBIT is $41.3m in Q2, down from $50.6m in Q2 2018. It was blamed on higher administrative expenses, which was partially mitigated by higher contribution from equity-accounted investees on the inclusion of contribution from Gemdale Properties and Investment Corporation.