KUALA LUMPUR (Feb 13): Eastern & Oriental Bhd’s (E&O) third quarter net profit declined 29.28% to RM21.98 million, from RM31.07 million a year earlier, due to higher profit attributable to non-controlling interests of RM11.66 million against RM1.87 million previously.

In a filing today, the group said earnings per share for the quarter ended Dec 31, 2017 (3QFY18) fell to 1.68 sen from 2.47 sen in 3QFY17.

Pre-tax profit in the quarter, however, came in 36.33% higher at RM67.34 million from RM49.29 million, supported by a 36.41% uptick in revenue to RM331.9 million from RM243.32 million.

Cumulative net profit for the first three quarters jumped 64.88% to RM62.89 million, from RM38.14 million in the previous corresponding period.

This was thanks to higher revenue, but partially offset by higher finance costs and lower contribution from joint ventures.

Revenue for the nine months rose 44.31% to RM701.22 million from RM485.9 million previously.

“The increase is mainly due to an increase of RM222.14 million which was registered by the property segment,” said E&O.

E&O said the outlook for the property market remains soft. “Despite stronger-than-expected gross domestic product growth, hikes in interest rates will further burden purchasers,” it said.

However, the group pointed to recent property sales, particularly in its projects located in Penang.

“The buyers are mainly locals signifying there is still significant interest in high end properties at the right price in the right location.

In a separate statement, E&O managing director Kok Tuck Cheong said E&O is maintaining its focus and resources on completing the reclamation of Seri Tanjung Pinang Phase 2 (STP2) which is targeted for the second half of 2018.

“Most recently, land titles for areas reclaimed above two metres chart datum (CD) have been obtained from the relevant authorities. Concurrently, more detailed design work for STP2A based on the parameters of the broad conceptual masterplan, have commenced and are at the initial stages,” he said.

Kok said that the next 12-18 months will see the group mobilising sales of the final phase of Ariza Seafront Terraces at STP1 as well as targeting to launch the first properties in STP2A, the second phase of Avira Garden Terraces in Medini Iskandar and an estimated RM880 million worth of service apartments at the intersection of Jalan Conlay and Jalan Kia Peng.

Shares of E&O rose 2 sen or 1.4% to RM1.45 at close today, giving the property developer a market capitalisation of RM1.92 billion.