KUALA LUMPUR, Nov 23 — Property developer SP Setia returned to the black with a net profit of RM11.01 million in the third quarter ended Sept 30, 2021 (Q3 FY2021), from a net loss of RM267.01 million a year earlier caused mainly by its 40 per cent share of impairment recognised by the Battersea Power Station (BPS) project in London.

However, it said, revenue shrank 45 per cent to RM594.55 million from RM1.08 billion previously, mainly dragged by its property development segment, as site progress for ongoing projects were significantly disrupted by the movement control order (MCO 3.0) beginning from June 1, 2021.

Nonetheless, its revenue for the cumulative nine-month period was higher at RM2.73 billion versus RM2.11 billion previously, mainly driven by progressive revenue recognition from the strong take-up rates achieved, the company said in a filing with Bursa Malaysia.

In a press statement, the company said despite the market challenges, its sales performance for Q3 FY2021 was RM3.38 billion, an increase of RM585 million against RM462 million in the same period last year.

SP Setia said local projects contributed RM2.66 billion while the remaining RM728 million came from international projects.

In terms of launches, the group said it had launched projects with a total gross development value (GDV) of RM1.50 billion, mainly comprising landed terrace houses and semi-detached homes in the first nine months of FY2021.

As for its UK joint venture, SP Setia said BPS witnessed another milestone with the official opening of its on-site underground train station as part of the Northern Line Extension in London.

Moving forward, president and chief executive officer Datuk Choong Kai Wai said the group was confident in achieving the sales target of RM3.80 million for FY2021 while remaining steadfast in its de-gearing initiatives to pare down borrowings.

“We will also optimise our capital structure to strengthen our platform in pursuit of sustainable growth, and optimising the use of our landbanks to accelerate strategic development,” he said.

As of Sept 30, 2021, SP Setia had 48 ongoing projects, 2,967.97 hectares of land bank worth RM124.6 billion GDV, as well as total unbilled sales of RM9.84 billion. — Bernama