Thursday, February 23, 2012

Falling property sales dent Chip Eng Seng profit

Straits Times: Thu, Feb 23
NET profit at construction and property firm Chip Eng Seng fell 28 per cent in the fourth quarter on declining real estate sales.

Earnings came in at $28.8 million for the three months to Dec 31 while revenue decreased 58 per cent to $57.5 million.

Net profit for the full year dipped 29 per cent to $123.7 million on revenue that fell 25 per cent to $360 million.

The property development arm posted a 93 per cent drop in quarterly revenue due to Oasis@Elias making no further contributions after it was completed in September last year, Chip Eng Seng said in a statement yesterday.

The My Manhattan project in Simei also did not contribute significantly as the construction progress had not reached its active stage, the firm said. The project was only 43 per cent sold as at Dec 31.

Chip Eng Seng also recorded $2.7 million in losses from its share in associates in the quarter compared to a share of profit of $12 million in the same period in the previous year.

This was because completed joint-venture development projects no longer contributed to the bottom line...

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