Financials
First Quarter Financial Statements Announcement for the Period Ended 31 March 2012
Financials Archive
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First Quarter Financial Statements Announcement for the Period Ended 31 March 2012
Profit & Loss
Statement Of Comprehensive Income
Balance Sheet
Review Of Performance
The following tables summarise the 1Q2012 operating results by business segments and comparables for 1Q2011.
1Q2012 Operating Segment Results
1Q2011 Operating Segment Results
Resources
The Group's resources revenue increased by 3% to $318.6 million for 1Q2012 mainly due to higher sales volume recorded by the tin smelting business in Malaysia.
The Group's resources operations reported a significantly lower net profit of $0.9 million for 1Q2012, compared with a net profit of $6.1 million for 1Q2011. Both the smelting business and the tin mining operations in Malaysia achieved satisfactory profits in 1Q2012. However, these profits were substantially off-set by the losses incurred by PT Koba Tin. Although average tin price recovered slightly to US$22,900 per tonne in 1Q2012 from a low of US$20,800 in 4Q2011, it was still 23% lower than US$29,900 in 1Q2011. The lower tin price coupled with higher unit cost of production continued to adversely affect the performance of PT Koba Tin.
Hospitality
The Group's hospitality revenue increased by 5% to $40.7 million for 1Q2012. The increase in revenue was mainly due to higher average room rates reported by most of the Group's hotels.
Hospitality reported a marginally lower net loss of $1.9 million for 1Q2012 due to higher revenue, improved operating performance and lower corporate expenses.
Property
The Group reported 11% lower property revenue of $11.9 million and 20% lower net profit of $1.4 million for 1Q2012 because there were no sales of development properties and net property income was lower.
Commentary
commentary at the date of the announcement of the significant trends and competitive conditions of the industry in which the group operates and any known factors or events that may affect the group in the next reporting period and the next 12 months.
Resources
The operating environment is expected to continue to be difficult and challenging due to weaker demand for commodities arising from the prevailing global economic uncertainties including sovereign debt concerns and economic recession in Europe.
Rationalisation activities to turnaround PT Koba Tin's operations require a significant improvement in production and drastic cost cutting measures. However, the results of any efforts to increase mine production will be subject to the renewal of PT Koba Tin's Contract of Work with the Government of Indonesia. Barring any unforeseen circumstances and subject to tin prices increasing to a more reasonable level the Board of the Group's listed subsidiary, Malaysia Smelting Corporation Berhad, expects the overall operating performance of the resources operations for FY2012 to be profitable.
Hospitality
Hospitality business continues to be challenging in an increasingly competitive market environment.
The Group has re-launched its hotels under three major brands, namely Rendezvous Grand, Rendezvous and Rendezvous Studio. With the completion of the refurbishment works, the hotel in Singapore will officially re-open as Rendezvous Grand Hotel on 23 May 2012, together with the Rendezvous Gallery, its newly refurbished F&B podium which is 100% tenanted.
Currently, refurbishment works at the Rendezvous hotels in Auckland and Scarborough, Perth, as well as Perth Central Business District are in progress. The refurbishment works at the Rendezvous hotel in Melbourne will also commence soon.
The Group's leased hotel in Christchurch was affected by the earthquake on 22 February 2011. The hotel is currently closed pending regulatory inspection and is expected to commence operations by the first half of 2012.
Property
The Additional Buyers' Stamp Duty introduced by the Singapore Government in December 2011 has dampened sentiment in certain segments of the Singapore residential market. The Group will seize new opportunities in properties as they arise.
The Group is undertaking feasibility studies on its existing land parcels in Malaysia to unlock their value.
The master lease at No. 18, 20 and 22 Cross Street, Singapore expired on 29 March 2012 and the Group does not expect any material impact arising from the expiration of the lease.