Oxley and SIA Engineering in steady share buybacks
Developer Oxley Holdings has been buying back shares from the open market. The most recent was on Feb 7 when it acquired 50,000 shares at between 14.2 and 14.3 cents each. This brings the total under of shares bought back under the current mandate to just over 8.13 million shares, equivalent to 0.1922% of the total share base.
Earlier, Oxley had also acquired 20,000 shares at 14.3 cents each on Feb 3 and 30,000 shares at 14.3 cents each on Feb 2.
On Feb 1, the company reported earnings for 1HFY2023 ended Dec 31, 2022, plunged 98.8% y-o-y to $277,000 from $23.5 million a year ago. Revenue fell by 13% y-o-y to $438.4 million.
The company says lower revenue streams, coupled with higher finance costs resulting from rising interest rates as well as lower mark-to-market fair value gain on derivative financial instruments had led to significantly lower earnings.
On the other hand, administrative expenses increased 11% y-o-y to $16.7 million as hotel-related expenses increased on the back of the reopening of the group’s hotels to the public after they ceased to be Covid isolation facilities.
Finance costs rose by 30% y-o-y to $74.2 million mainly due to higher interest rates from loans and borrowings. As at Dec 31, 2022, Oxley’s cash and cash equivalents stood at $152.9 million with a gearing ratio of 1.89. The company expects this ratio to improve over the coming year with more of its projects here receiving their temporary occupation permits (TOPs). As at Dec 31, 2022, its total unbilled contract value stood at $1.4 billion.
Cautious optimism
In its earnings commentary, Oxley says that with an eye on the “sharp downturn” in global growth, it has repositioned its assets to improve returns and profitability. That said, it remains “cautiously optimistic” about the year ahead.
“Oxley sees opportunities but we will take cautious steps and continue to strengthen the group’s financial position with the disposal of non-core assets to focus on the development projects in the developed markets,” says executive chairman and CEO Ching Chiat Kwong.
On Feb 7, Oxley announced that it recorded RM302 million ($93 million) in pre-sales from selling nearly 60% of the Jewel by Oxley KLCC project in Malaysia.
Jewel, which is located within Oxley Towers KLCC, is a freehold mixed development comprising five-star hotels, an office tower and a retail podium. The 49-storey building houses 267 exclusive serviced residences spanning one- to three-plus-one-bedroom units and dual-key options.
“The successful pre-sale of nearly 60% of Jewel by Oxley KLCC marks a bright start to the Year of the Rabbit for Oxley Holdings. The group has devoted much resources and efforts to make Oxley Towers KLCC an iconic development in Kuala Lumpur, the capital city of Malaysia,” says Ching.
“With the opening of borders and resumption of international travel, we are experiencing pent-up demand for quality urban residential developments. Oxley is well-positioned to ride this wave of opportunity,” he adds.
Gaining altitude
SIA Engineering is another company that has been steadily buying back shares from the open market. Most recently, on Feb 2, the company bought back 28,000 shares at a range of $2.5 and $2.51. This brings the total number of shares bought under the current mandate to 2.15 million shares.
The company bought as well on days including Feb 1, when it paid between $2.49 and $2.5 for 15,000 shares. On Jan 31, it paid between $2.47 and $2.49 for 18,400 shares. The company, whose business is tied to the health of the aviation sector, has been steadily buying back over the last couple of months.
On Nov 1, SIA Engineering reported that revenue for its 1HFY2023 ended Sept 30 2022 was $32.5 million, up from $25 million recorded in the year earlier period. Revenue, meanwhile, was up from $263.5 million to $362.2 million.