$46.5m Capital Gain Boost For Bt Sembawang

Source : The Business Times, February 14, 2008

Third-quarter net profit soars more than 8-fold to $52.4m

THANKS to a one-time capital gain, Bukit Sembawang Estates has reported third-quarter net earnings of $52.4 million, more than eight times the net profit of $6.25 million it generated for the corresponding quarter last year.

The one-time capital gain of $46.5 million for the three months ended Dec 31, 2007, came from the sale of more than two million shares in HSBC Holdings plc. Bukit Sembawang had earlier said that the share sale was to reduce the group's bank borrowings.

The exceptional gain was reflected in the group's 'other operating income' which went up to $47 million, from $961,000 in the year-ago period. Revenue jumped 30.9 per cent to $17.7 million.

The performance brings the property group's nine-month revenue to $63.7 million, 51.3 per cent higher than the $42.1 million in Q3 last year. During the period, revenues for housing units sold at Parc Mondrian, Paterson Suites and phases 4 and 6 of Mimosa Terrace were recognised.

The boost in Q3 bumped up its nine-month net profit to $71.3 million, from $17.7 million. This brings basic earnings per share to 78.11 cents, from 24.47 cents previously. As at Dec 31, 2007, net asset value per share came to $4.53, from $4.64 as at March 31, 2007.

In view of the uncertain climate in the property market, Bukit Sembawang said it is reviewing the launch of the two projects - the 102-unit freehold development Paterson Suites and the 123-unit The Vermont on Cairnhill. It is also waiting for the hearing of the appeal against the Strata Title Board's rejection on the collective sale of Airview Towers.

Bukit Sembawang had planned to build a 36-storey condominium on the site currently occupied by Airview Towers and an adjacent property. But the Strata Titles Board had dismissed a collective sale application by the majority owners of Airview Towers on grounds of technicality. The hearing of the appeal is set to take place on Feb 19.

Shares of Bukit Sembawang slipped 2 cents yesterday to close at $8.96.