Far East Consortium sees recovery after 48.5% profit rise

The group recorded a profit of $543m in 2021.

Far East Consortium said it is positioned for the economic recovery after it reported a profit increase of 48.5% to $543m in 2021.

“The steps taken to reduce our cost base means that as business recovers, the profitability will improve. This bodes well for the Group’s performance when the COVID-19outbreak is contained or fully eradicated,” Tan Sri Dato’ David Chiu, Executive Director, Chairman and Chief Executive Officer of FEC, said.

“The Group remains committed to recycling its capital by exploring the sale of its non-core assets within its asset portfolio.”

The Group reduced cost and expenses to cushion the impact of the 20.2% year-on-year decrease in its total revenue to $5.9b in 2021.

Its revenue form recurring income businesses dropped 34.3% YoY, whilst its hotel operation segment also declined 33.9%. Moreover, revenue from its property development segment declined to $4.2b from $4.8b in 2020.

The Group, however, managed to remain profitable through cost control initiatives as well as incentives and compensation programmes extended by various governments across the globe.

In total, the Far East Consortium received $203m in assistance.

“We have a strong balance sheet and good people on the ground across our markets. Whilst remaining vigilant, we believe that we are well-positioned to continue to grow and deliver a sustainable and healthy dividend to our shareholders,” Chiu also said.

The Group maintained a sound financial position after it issued 10-year notes with a principal amount of $200m as well as 3-year notes with a principal amount of US$235m amongst others.