Oxley's Q1 net profit down 84% to $13.7m

Project completions boosted last -year's earnings.

Property Developer Oxley Holdings reported a huge decline in net profits for the start of its 1Q17, sliding down 84% to $13.7m from $87.2m last year.

Oxley revealed that along with this, its revenue also decreased 71% to $126.5m.

" The revenue was primarily supported by revenue recognition on 5 of Group’s residential and mixed-use projects in line with the construction progress, based on percentage of completion method," the group explained.

It furthered, "Revenue recognition on the handover of some units in The Royal Wharf Phase 1 and rental income generated by investment properties. The higher revenue of S$435.9 million in 1QFY2016 was mainly due to the recognition of revenue upon the completion of Ecotech @ Sunview."

The slump also came after cost of sales decline 76% to $78.9m due to cost recognition of the said 5 projects.

Oxley CEO Ching Chiat Kwong said the launch of its Dublin Landings has been the highlight of the past quarter.

"It marked another major step in our overseas expansion, after the Royal Wharf project, as we continue to build our revenue pipeline for sustainable growth," he said.

More so, he explained that the group has been seeking to achieve an optimal outcome with efficient use of its resources. He cited that the unbilled contract value of $2.7b will allow the group to meet its operational and construction needs. It will also aide the group in paying down its debts to reduce further gearing.

"Complemented by recurring income from investment properties, Oxley will gain a stronger financial foothold to fund existing and future projects, and create value for our shareholders and investors,” he stressed.