KUALA LUMPUR: Eastern & Oriental Bhd (E&O) on Nov 22 reported a sharply higher group revenue of RM171.5 million for the six months ended Sept 30, 2022 (H1’23), compared with RM60.4 million in the previous corresponding period.
The improved earnings was largely due to revenue recognition from sale of The Meg while the hospitality segment improved further with higher occupancy rates and average room rates.
However, H12023 net profit was only RM3.5 million after being dampened by unrealised foreign exchange loss of RM42.7 million as a result of the weakening of the sterling pound to ringgit.
“The strong take-up rate for The Meg is a reflection of the strategic location of Andaman Island Phase 1 and also the team’s ability to deliver the right product for the market,” said E&O managing director Kok Tuck Cheong.
He said they are encouraged and would launch more exciting projects in Andaman Island in the near term.
The proposed rights issue of ICULS which is expected to raise a minimum of RM178.22 million has received approvals from the authorities and a shareholders’ extraordinary meeting is slated for January 2023.
Kok added that the proposed rights issue of ICULS is timely as the group is embarking on a new growth cycle with more projects launches each year and the reclamation of Andaman Island Phase 2.
Besides the property segment, E&O Hotel’s performance is growing from strength to strength to pre-Covid levels driven by both leisure travel as well as business travel where MICE activities are seen to be increasing.