Slower home sales last quarter and a change in reporting standards have contributed to a 65 per cent plunge in Keppel Land’s second quarter net profit.
Its half year net profit also suffered, dropping 34 per cent to about S$133.8 million.
Keppel Land’s net profit for the second quarter ended June 30 was S$50.5 million.
This is compared to S$143.8 million in the same year-ago period.
Revenue for the quarter fell 67 per cent on-year to S$104.19 million, while half year revenue increased 9 per cent to S$462.1 million.
Keppel Land said the weaker financial performance was due to the adoption of revised financial reporting standards.
Under the new standards, revenue and profit from overseas trading projects and units sold under the ‘deferred payment scheme’ are recognised only on full completion.
This is based on the INT FRS 115 issued by the Accounting Standards Council.
If it were not for the changes in reporting standards, Keppel Land said net profit for the first half would have showed an on-year increase of 22.6 per cent.
Looking forward, Keppel Land said it is confident of its prospects in the office property sector.
Kevin Wong, group CEO, Keppel Land, said: “Grade A office rents grew by about 7 per cent in the first half of 2011. We continue to see interest from prospective tenants for OFC (Ocean Financial Centre) and Marina Bay Financial Centre Phase 2.”
Source : Channel NewsAsia – 20 Jul 2011