OUE's net profit plunged 36% to $14.6m

Here are 2 factors to blame.

According to a release, Overseas Union Enterprise Limited (OUE) reported a lower net profit of $14.6 million for 2Q 2013, down 36%. This was a result of lower contribution from 6 Shenton Way and an increase in administrative expenses due to higher legal and professional fees and headcount cost.

This brought the total revenue recorded for the six months ended 30 June 2013 to $217.4 million, up 12% from the previous year, while net profit declined by 63% to $16.6 million.  

However, it reported a 16% growth in revenue to $112.0 million for the three months ended 30 June 2013. The stronger showing in the top line was mainly attributed to higher revenue recognized by the Group’s Property Development division from the sale of residential units at its luxury property, Twin Peaks.

On a fully diluted basis, earnings per share for 2Q 2013 and 1H 2013 were 1.60 cents and1.79 cents respectively, compared to 2.50 cents and 4.89 cents in the corresponding periods last year.