BTO: MCL Land net profit 72% down

April 30, 2009

MCL Land net profit 72% down

MCL Land yesterday reported a 72 per cent dive in its net profit for the three months ended March 31, amid subdued market sentiment.

 

Its net profit was US$1.4 million (S$2.1 million), down from US$5 million a year earlier, even as revenue rose from US$400,000 to US$8.3 million.

 

The developer's revenue was mainly due to the sale of five high-end units at The Fernhill, which was completed last month.

 

Its revenue and profit would have been US$31 million and US$9.3 million higher, respectively, if the en bloc buyer of the remaining 20 Fernhill units had paid in full by the due date.

 

Under the sale and purchase agreement, it has to wait a few more days for the China investor to pay up before it can serve him notice to repudiate the agreement.

 

'The outlook for the residential property markets in Singapore and Malaysia remains uncertain, despite the recent pick-up in sales of mass market residential properties in Singapore,' said chairman Y. K. Pang.

 

Still, it expects to benefit from the completion of Tierra Vue in the second quarter and Hillcrest Villa by the fourth quarter.

 

Waterfall Gardens and D'Pavillion - where 28 per cent of the 50 units has been sold as of March 31 - should be completed next year. The Peak @ Balmeg, which has sold 25 per cent of its 180 units, will follow in 2011.

 

The firm's net debt fell from US$181 million at the end of last year to US$161 million. Earnings per share were 0.38 US cents, down from 1.36 US cents a year earlier. Net asset value per share was at US$1.01, down from US$1.06 at the end of last year.

 

MCL Land had already written down the value of its development properties for sale by US$180.2 million when it posted a net loss of US$107.3 million for the year ended Dec 31, 2008.

 

Yesterday, its shares closed four cents up at $1.14.