SUTL Enterprise reports fall in 2018 net profit

Singapore-listed marina developer and operator, SUTL Enterprise Ltd, has reported a net profit of S$5.8m for the year ended December 31, 2018. This is a 14% fall compared with the restated S$6.8m recorded in 2017. Earnings per share slipped to S6.71 cents as against S7.81 cents in the year previous.

SUTL’s total 2018 revenues totalled S$34.8m, a rise of just 2% compared with 2017. The net asset value per share for the group as at December 31, 2018 was S66.32 cents, up from S61.60 cents the year before. 

In a statement the company said: “Higher overall expenses were incurred mainly because of increased spending in relation to the hosting of the Singapore Yacht Show 2018 at the ONE°15 Marina Sentosa Cove; manpower expenses in preparation for the upcoming membership sales drive for the ONE°15 Marina Puteri Harbour, Malaysia; and higher professional fees and business development costs in relation to new marina projects.”

SUTL Enterprise CEO and executive director, Arthur Tay, commented: “The company expects to break ground for ONE°15 Marina Puteri Harbour, Malaysia very soon. It is establishing a sales gallery near the site and plans to start membership sales shortly.”

He added: “At the same time, we are actively pursuing marina management contracts around the world so as to fulfill our vision to plant our ONE°15 brand globally. We expect to secure more marinas in FY2019 either via management contracts or through joint ventures, acquisitions and strategic alliances.”

SUTL’s fourth-quarter performance shows the company achieved a net profit of S$3.6m, a drop of 17% from the restated net profit of S$4.4m reported for the corresponding quarter of 2017. The fall was attributed to higher overall expenses. Total revenue for Q4 amounted to S$11.4m, a 1% increase on the previous year’s last quarter.

The ONE°15 brand network, apart from the flagship marina in Singapore, also includes two projects in China, two in Indonesia and one each in Malaysia, Thailand and the US. In addition to the new Puteri project, there is also a marina under development in Phuket, Thailand.

In another move, SUTL is working in the Chinese province of Hainan to develop the yachting industry there under an MOU with the Hainan Cruise & Yacht Association. Following a roundtable held in Hainan last November, a master plan for the province has been prepared and is currently under consideration. A forum to take this forward is planned for later in the year.

China’s national government is supporting this Hainan initiative as ‘an experiment’ which may help open up boating activity across the country.