KUALA LUMPUR: Eastern & Oriental Bhd’s (E&O) net profit for its third quarter ended Dec 31, 2021 rose to RM7.83mil from RM832,000 in the previous corresponding period, while revenue dropped to RM23.38mil from RM36.52mil a year earlier.

       For the nine-month period ended Dec 31, 2021, E&O reported a net loss of RM15.26mil compared with a net profit of RM1.95mil in the previous corresponding period, while revenue stood at RM83.79mil compared with RM165.53mil a year earlier.

       In a filing with Bursa Malaysia yesterday, E&O said its property division recorded a revenue of RM65.8mil in the financial period ended Dec 31, 2021 as compared to RM150.8mil previously.

       “The decreased revenue was mainly due to a sale of land of RM55mil in the previous financial period and lower sales of completed properties during the current financial period.”

       E&O said joint-venture (JV) projects namely The Mews, Conlay and Avira Garden Terraces (pic) contributed a total revenue of RM30.7mil during the financial period ended Dec 31, 2021, as compared to revenue of RM39.2mil achieved a year earlier.

       It said after incorporating revenue recognised from JV projects, the group’s property segment recorded an adjusted revenue of RM96.5mil in the financial period ended Dec 31, 2021, as compared to an adjusted revenue of RM190mil previously.

       “The property segment recorded an operating profit of RM30.6mil for the current financial period as compared to an operating profit of RM68.1mil in the financial period ended Dec 31, 2020.

       “This represented a decrease of RM37.5mil mainly due to one-off profits from sale of land parcels in the previous financial period,” it said.

       Separately, E&O said its hospitality division recorded a revenue of RM16.6mil for the financial period ended Dec 31, 2021, as compared to RM13.2mil a year earlier.

       “This marked an increase of RM3.4mil or 25.8%. The increase was mainly due to higher revenue generated as the interstate travel ban has been lifted for local tourists.”

       It said the segment recorded an operating profit of RM10.8mil in the financial period ended Dec 31, 2021 as compared to an operating loss of RM27.4mil previously.

       “The operating profit in the current period was mainly due to the recognition of gain on lease modification of RM9.3mil and waiver of rental of RM11.8mil,” it said.

       On its prospects, E&O said the recent sharp increase in Covid-19 infection rate could delay the government’s decision to open the international borders for tourist visitations.

       “This, in turn, would be negative for the hospitality division and projects in locations which are favoured by foreign purchasers.

       “However, domestic demand for properties in Penang continues to be encouraging. We expect improved interest in our upcoming launches,” it said.