Oxley's Q1 profits plummet 83% to $8.06m

It blamed lower revenue contribution from projects in Singapore and overseas.

Oxley Holdings’ Q1 profits sank 83% to $8.06m from $48.74m in Q1 FY2018, an announcement revealed. Its revenue also declined 45% to $170.3m from $310.6m in Q1 2018. 

Its profit and revenue declined due to the completion of its Singapore and overseas development projects which had varying margins, Oxley said. Earnings per share for Q1 fell to $0.02, down from $0.126 cents previously.

Oxley's profits in Q4 FY2018 increased to $137.7m from $41.54m following gains from its purchase of Chevron House, whilst revenue grew by 4% to $233.06m from $224.33m FY2017.

Also read: Oxley Holdings full-year profits jumped 31% to $285.03m

The firm launched its luxury condominium project Mayfair Gardens in September which saw 40% of its unit sold within two days, whilst its other development Kent Ridge Hill Residences launched in November and saw 46% of units sold over the weekend.

Meanwhile, Oxley’s financial statement highlighted that its hotels Novotel Singapore and Mercure Singapore continue to improve its occupancy and average room rates, achieving 80% and $170 respectively at the end of Q1.

It also announced the sale of Dublin Landings Block D2 for $167m (€106.5m) in November, and Oxley said its cashflow from the sale would strengthen the group’s financial position. The firm also sold a property in Tokyo for $10.6m (JPY855m) in August.

Oxley secured total sales of $1.7b in November, and approximately $500m worth of remaining project will be launched in the future, the firm said.

The government’s property cooling measures to increase Additional Buyer’s Stamp Duty (ABSD) and lower loan-to-value (LTV) limits on residential property purchases are not hindering the firm’s cautiously optimistic outlook for the future.

“Fortunately, Oxley’s strategy in acquiring land parcels at competitive prices in previous years has allowed the group flexibility in pricing our projects,” Oxley executive chairman and CEO Ching Chiat Kwong said. “With our competitively lower costs, we are confident of achieving our sales targets. We expect these development projects, both in Singapore and overseas, to be substantially completed over the next few years.”