UOL Q2 profit soars to $147.8m

Property developer UOL Group has posted a net profit of $147.8 million in Q2, recovering from a $20.1 million net loss over the same period last year. The company’s gains in the second quarter were attributed largely to its hotel operations, property investments and developments, as well as to a favourable shift in investment property fair value.

The company’s improved showing in Q2 came on the back of a 50 percent increase in revenue to $320.4 million. The biggest contributor was property development, bringing in $186.7 million in the second quarter, more than twice the amount earned in the previous year. Higher revenue also came from its residential projects like Double Bay Residences, Waterbank at Dakota, Duchess Residences and Meadows@Peirce.

UOL’s gross revenue for hotel operations increased 16 percent to $78.3 million, while property investments brought in $36.7 million, up 4 percent year-on-year. The company also benefited from the fair value gain on investment properties that reached $24.8 million compared to a $77.0 million fair value loss a year ago.

However, despite a 39 percent jump in revenue to $569.7 million, UOL’s net profit for the first half plunged 24 percent to 235.7 million. This was due to a negative goodwill recognition worth $277.7 million, which relates to the acquisition of interests in associated companies in the previous fiscal year.

Looking ahead, the company is expecting strong Q3 sales. It recently launched its 172-unit Terrene @ Bukit Timah residential project, which already saw a 98 percent take up rate. The company has also sold 970 residential units amounting to approximately $1.3 billion.