SINGAPORE (May 15): Sinarmas Land saw earnings in the first quarter ended March more than double to $37.2 million, compared to $15.7 million a year ago.
The increase was on the back of higher revenue from its Indonesia division and better operating performance from higher sales of residential units in its joint venture developments.
Group revenue in 1Q17 grew 31.8% to $237.1 million, from $179.9 million in the corresponding quarter last year.
This was mainly attributable to a larger number of residential units handed over to homebuyers in BSD City, Indonesia, and partially offset by lower sales of industrial land in Kota Deltamas, Indonesia.
Sinarmas posted a gain of $3.8 million from share of results of joint ventures in 1Q17, compared to a loss of $3.0 million a year ago.
This was mainly due to better operating performance from higher sales of residential units in certain joint ventures in Indonesia.
Other operating income more than tripled to $10.0 million in 1Q17, from $3.1 million a year ago, mainly due to fair value gain on conversion option upon settlement of certain convertible bonds during the quarter.
Cash and cash equivalents stood at $804.1 million as at March 31, 2017.
Looking ahead, Sinarmas Land is “well positioned to take advantage of [Indonesia’s] property sector recovery through joint ventures and land sales, as well as focusing strategically on increasing recurring income contribution through development and acquisition of commercial properties,” says Margaretha Widjaja, Sinarmas Land’s executive director and vice-chairman of its Indonesia division.
“Outside Indonesia, the group is actively pursuing investment opportunities to boost recurring income from its international division as political stability returns,” she adds.
Shares of Sinarmas Land closed flat at 45 cents on Monday.
