Chip Eng Seng's Q2 profit up 56%

Construction and property group Chip Eng Seng Corp recorded a net profit of $22.4 million in the second quarter, up 56 percent from $14.4 million over the same period last year. The increase in net profit was attributed to higher construction activity and property sales.

The group’s revenue also climbed 84 percent in Q2 this year, to $125 million from $68.1 million a year ago.

Revenue in the second quarter rose seven times to $40.5 million, which was attributed to the sales of Oasis@Elias, its wholly-owned development that was launched in H2 2009.

The group’s construction segment also saw a 35 percent increase in revenue to $84.1 million, attributed to revenue recognition from ongoing projects like Grange Infinite, City Vista Residences, The Parc Condominium, as well as HDB projects.

For H1 2010, the group’s net profit surged 76 percent to $47.2 million from $26.8 million over the same period last year, while revenue rose 53 percent to $225 million from $147.1 million.

The company will continue to take advantage of the recovery in the Singapore real estate market, which has led to higher prices and sales volume at its developments, said Lim Tiam Seng, executive chairman of Chip Eng Seng.

As for its construction business, the group is improving its precast division, as well as studying means to integrate environmental protection practices into its business.