InvestIdeas

OUE's Q3 net profit plunges 97%, sees lower FY08 earnings
By ANGELA TAN

Overseas Union Enterprise Limited (OUE) on Wednesday reported net profit plunged 97.3 per cent to S$9.97 million, compared to S$368.74 million a year ago which got a boost from fair value gains on its investment properties.

In Q3 2007, the group recorded fair value gains on investment properties of $198.3 million mainly attributable to Mandarin Gallery and Overseas Union House.

The decline in net profits also attributed to the decline in earnings per ordinary share from $1.88 in Q3 2007 to $0.05 in Q3 2008.

Revenue for the quarter was down 15 per cent at S$36.25 million.

As OUE has yet to launch its residential projects, it had not recorded any revenue in Q3 2008 from the sale of development properties.

OUE said given the current uncertain economic backdrop and financial turmoil, it foresees deterioration in property values.

This could potentially result in a reversal of some of the fair value gains the group has previously recognised.

Under these circumstances, OUE would not be able to match similar profitability experienced in 2007 in this financial year.

Source: Business Times

OUE, once Indonesian owned by the L* group, crossed me badly. It booted out my safe deposit box at Mandarin Hotel and now it has stripped the famous Taiwanese sculptor's masterpieces from the Orchard Mandarin Hotel main lobby

LenaHuat wrote:OUE, once Indonesian owned by the L* group, crossed me badly. It booted out my safe deposit box at Mandarin Hotel and now it has stripped the famous Taiwanese sculptor's masterpieces from the Orchard Mandarin Hotel main lobby

Eh... who owns OUE now? Are the current owners the same ones whom old Wee sold OUE to? Or was there another change after that?

Hi GR

I tot there was only one change and that was the Lien family sold their interests to the Riady family of the Lippo group.

LenaHuat wrote:Hi GR

I tot there was only one change and that was the Lien family sold their interests to the Riady family of the Lippo group.

Hmm, I think should be twice? 'cos old Wee was Chairman for a period - that was during that time when the gahment wanted the local banks to unravel their cross-holdings with their related companies (e.g. UOB - UOL - OUE - Haw Par); the sale to Lippo (and a Malaysian counterpart in a 60:40 venture - just saw this in a document in Google) happened during that unraveling period.

Or maybe Wee became boss due to the OUB-UOB merger, so there was only one sale technically. Haha paiseh I confuse you.

So I suppose Lippo is still the owner then....

Hi GR

It's OK. U could well be very right. Anyway, old Wee always confuses me

Dropped 23% today. What happened ? No news on SGX website..

Property Development not sure thing meh ?

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Overseas Union Enterprise said it would report a net loss for its second-quarter results as it writes down two development properties in its portfolio.

In its profit warning yesterday, the group said that it expects a 'material net loss' for the quarter ended June 30, 2009 because of a 'significant allowance' for
impairment losses for the two properties.

Not vested.

OUE sees 22% fall in Q3 net profit By UMA SHANKARI

OVERSEAS Union Enterprise (OUE) reported a 22 per cent fall in Q3 net profit to $7.8 million, from $10 million a year ago.

Revenue for the three months ended Sept 30, 2009 fell 8 per cent to $33.5 million, from $36.2 million in Q3 2008.

The decrease in group's total revenue was largely due to lower revenue generated for the hospitality division resulting from severe global economic downturn and the ongoing refurbishment works at Meritus Mandarin Singapore, it said.

Source: Business Times

Not vested. From DBS:-

OUE has warned that the group expects to report a 'material loss' for FY Dec 09, as a result of a fair value
writedown on an investment property of an associated company and an impairment charge on the group's
development properties, arising from a revaluation of the properties at end-2009.