UOL net profit soars 211% to $91.3m in H1 2021
This is due to the increase in revenues of property development and the decline in fair value losses.
UOL Group Limited recorded a 211% year-on-year (YoY) increase in net attributable profit to $91.3m in the first half of 2021, following a loss of $82.1m in the same period last year.
The increase is due to the significant revenue from property development attributable fair value losses on investment properties which narrowed to $16.9m from $185.8m.
During the period, the group’s revenue rose 31% to $1.2b, as property development increased 81% to $687.5m on higher progressive revenue from Avenue South Residence, The Tre Ver, and Clavon in Singapore, which was partially offset by lower revenue from Amber45 and V on Shenton in Singapore and Park Eleven in Shanghai, China.
Revenue from property investments jumped 5% YoY to $249.8m in the first half.
Revenue from hotel operations fell 8% YoY to S126.1m due to the impact of COVID-19 on the Singapore hospitality industry, whilst revenue from technology operations declined 9% to $107.9m due to lower sales of information technology services due to delays because of global supply constraints.
The group also saw a 41% drop in investment income to $17.5m due to a decrease in final dividends and the absence of special dividends from United Overseas Bank.
“Despite healthy demand in Singapore’s private residential market, we remain concerned about rising construction costs due to manpower shortage and supply chain disruptions. These challenges amplify the urgency to work towards strengthening the industry resilience,” UOL Group Chief Executive Liam Wee Sin said.
“The impact of the pandemic has also prompted rethinking on the usage, design and space requirements of the various real estate asset classes. There is a need for a more flexible planning approach to adapt and respond to changes such as hybrid working, accelerated online shopping, and the increased focus on health and well-being and climate change,” he added.