E&O reports RM8.8mil loss in Q3

Companies that provide short-term consumer loans at high interest rates are on the increase in countries like Indonesia and the Philippines as many people struggle to get advances through traditional channels such as banks.

KUALA LUMPUR: Eastern and Oriental Bhd posted a net loss of RM8.8mil for the third quarter ended Dec 31, 2018 from a net profit of RM21.98mil in the same period the previous year.

Revenue fell to RM256.95mil versus RM331.90mil, with the company recording a loss per share of 0.67 sen versus earnings per share of 1.68 sen.

“Notwithstanding the uncertainties and continued weakness in the property market, the group was able to sustain new sales which have brought down our level of inventory.

“Our coordinated sales campaign “E and O Luxury Living” to reduce inventory has been encouraging as we achieved cumulative sales of approximately RM251mil for nine months compared to RM236mil in the same period the preceding year,” it said in a filing to Bursa Malaysia.

It added that while property market conditions continue to be challenging for the remaining fourth quarter, the company would continue to focus on reducing its inventory by offering attractive packages to buyers.

On another development, Eastern  and  Oriental announced that reclamation works on its major development project Seri Tanjung Pinang Phase 2A (STP2A), off the northeast coast of Penang island, is nearing completion.

“A detailed masterplan is currently being finalised towards the creation of Penang's foremost investment, residential, commercial and tourist destination.

“STP2A is expected to have a gross development value of over RM17bil and will be developed over a period of 15 years,” it added. - Bernama