Construction and property firm Chip Eng Seng has recorded a 28 percent decline in net profit for the fourth quarter ended 31 December 2011, with revenue sliding 58 percent to S$57.5 million.
The company also recorded S$2.7 million in losses from its stake in associates in Q4, compared to a share of profit of approximately S$12 million over the same period in the preceding year.
Meanwhile, its property development business posted a revenue drop of 93 percent, mainly attributed to no additional contribution from its Oasis@Elias project (pictured) after its completion in September 2011.
Similarly, the company’s revenue from construction declined 26 percent to S$52.2 million, attributed to existing projects being completed.
Chip Eng Seng said it will continue to be selective in expanding its landbank, given the slowdown in Singapore’s residential property market. However, the company is diversifying into other property-related businesses and increasing its presence in the overseas market.
It said it plans to develop a 450-unit hotel with retail components on a site in Alexandra Road, which it acquired in a state tender last December.
The firm will also launch a 128-unit freehold condo project at Fort Road in the coming months.
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