Low Keng Huat reports 91% fall in 2Q19 earnings on absence of sales
Sept. 15, 2019
SINGAPORE (Sept 15): Construction company Low Keng Huat reported 2Q19 ended July earnings of $0.36 million, down 91% fom $4.15 million a year ago.
Revenue fell 89% to $8.4 million from $77.9 million a year ago. The decrease was mainly due to absence of sales in development segment as there was no development project launched for sale in 1H19.
Kismis Residences & Tranquilia @ Kismis were fully sold last year. Uptown @ Farrer is 27.5% completed and scheduled to launch for sale by Sept 14. Citadines Balestier is expected to commence business by Sept 30 while Lyf @ Farrer is expected to obtain TOP by 4Q22 and to commence business by 2Q23.
Investment revenue increased by $0.1 million to $4.3 million in 2Q19 due to gain on disposal of quoted equity investments.
Revenue from hotel segment decreased by $0.2 million to $4.1 million mainly due to lower rates and weakening of Australian dollar against Singapore dollar at Duxton Perth.
In tandem, cost of sales for 2Q19 decreased $92% to $5.3 million while gross profit also fell 71% to $3.1 million. Meanwhile, distribution costs, admin costs and other operating expenses fell 92%, 26% and 68% resepcetively. Loss of share of results of asssociated companies and JVs also widened 37% to $0.95 million.
For the 1H19 ended July, earnings came in at just $0.8 million, down 91% from a year ago.
As at end July, cash and cash equivalents stood at $60.4 million.
Year to date, shares in Low Keng Huat are down 6 cents to 45 cents last Friday.
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