UOL’s Q2 net profit up 16%

Property firm UOL Group has reported a 16 per cent increase in its net profit to $202 million for its second quarter ended June.

This is on the back of strong revenue which jumped 40 per cent to $455.9 million from $326.7 million in the same period last year, the company’s news release said.

Property development, property investments and dividend contribution all registered good income and has helped offset higher finance costs and lower profits from associated companies – which fell 67 per cent to $33.2 million from $99.7 million in the same quarter last year.

UOL said revenue from its property development segment rose 58 per cent to $305.7 million while property investments rose seven per cent to $39.3 million.

But its net attributable profit excluding fair value and other gains fell 25 per cent to $110.6 million from the same quarter last year.

For its first half, UOL said revenue rose 72 per cent to S$1.2 billion from $685.5 million a year ago, adding it is the first time revenue exceeded the S$1 billion mark in the half time.

Its net attributable profit for the first six months also rose 59 per cent to S$432.2 million against S$272.4 million in the year ago period.

Gwee Lian Kheng, UOL group chief executive said the company expects some headwinds in the second half of this year given the sovereign debt crisis in the Eurozone and fiscal deficits in the US.

But uncertainties and projections of a slower growth for Singapore aside, he said: “We believe our healthy capital position and diversified portfolio will provide a buffer for us in this turbulent economic environment.”

Source : Channel NewsAsia – 12 Aug 2011

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