UOL net profit plunges by 97%
Earnings per share took a dive from $56.8 cents to $1.6 cents.
UOL group took a 97% loss in net profits to $13.1m for FY 2020 on the back of fair value and other losses of $246.7m.
Revenue fell to $1.97b in 2020, a 13% drop from 2.28b in 2019.
According to UOL, the decline in the fair value on its commercial properties and serviced suites as well as the impairment charge for Pan Pacific London and Pan Pacific Melbourne reflected the impact of the pandemic.
The group’s hotel operations saw the biggest decline at 62% to $246.5m due mainly to the impact of COVID-19, with hotels in Singapore and Australia reporting the largest decrease. The closure of PARKROYAL COLLECTION Marina Bay and PARKROYAL Kuala Lumpur for major refurbishments, and the absence of revenue from Pan Pacific Suzhou, which was sold in December 2019, also affected hotel revenue.
Group expenses fell 30% to $378.6m from $542.8m in FY19 due to lower sales and various cost containment measures to mitigate the effects of COVID-19. Other operating expenses dropped 45% to $116.5m mainly from the absence of amortisation of development property backlog for the period under review. Finance expenses declined 28% to $83.4m owing to a drop in interest expense on bank borrowings amidst the low interest rate environment.