Singapore property developers Oxley Holdings and GuocoLand reported resilient earnings and strong profits for the six months and full year ended June 30 despite the pandemic induced slowdown.

Oxley reversed last year’s losses to substantial profits this year. The top line reported an improvement of 58% in 2H2021 and 33% for the full year while its bottom line booked profits after last year’s losses. The developer reported that in Singapore, private home prices rose for the fifth straight quarter since Q1 2020, and ~3,600 residential development units representing 91% of the development portfolio and 87% of the portfolio gross development value or approximately S$4.3bn ($3.2bn) were sold as of August. Revenue was boosted by its projects in Cambodia, Singapore and Ireland, and partially offset lower revenue from its project in the United Kingdom. A summary of its earnings is as follows:

  • Revenues for 2H2021 and FY2021 increased 58% and 33% to S$781.9mn ($578mn) and S$1.36bn ($1bn) respectively
  • Total profit for 2H2021 and FY2021 came in at S$9.5mn ($7mn) and S$49.5mn ($37mn) vs. a loss of S$288mn ($213mn) and S$275.1mn ($203mn) respectively
  • During FY2021, the group generated positive cash flows of S$623.6mn ($461mn) from operating activities
  • Net gearing ratio improved significantly to 2.18x as at June 30 compared to 2.48x last year

Oxley’s bonds were stable on the secondary markets. Its 5.7% 2022s yielding 4.96% and 6.9% 2024s yielding 6.71% were trading at 100.3 and 100.5 respectively.

GuocoLand reported a rise of 48% in FY2021 profits despite a 9% dip in its revenues as the company experienced a lower progressive recognition of sales YoY from its Singapore residential projects and lower revenue from the Group’s hotel segment and investment properties in Malaysia. A summary of its earnings is as follows:
  • Revenues for 2H2021 increased 45% to S$534.1mn ($395mn). Revenues for the full year reduced 9% to S$853.7mn ($631mn)
  • Total profit for 2H2021 and FY2021 rose 8x and 1.2x to S$185.3mn ($137mn) and S$199.5mn ($147mn) respectively
  • Total profit for the full year posted S$199.5mn ($147mn) vs. S$90mn ($66,5mn) YoY
GuocoLand’s bonds were stable. It’s 3.85% 2023s yielding 1.96% and 4.6% perps yielding 4.6% were trading at 102.7 and 100.7 respectively on the secondary markets.
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