KUALA LUMPUR (Feb 26): Eastern & Oriental Bhd (KL:E&O) expects reclamation works for Phase 2 of its Andaman Island project in Penang to be completed by end-2027, about a year ahead of schedule.

Managing director Kok Tuck Cheong said E&O expects to secure additional financing, likely through bank borrowings, to fund infrastructure and working capital requirements for the 507-acre Phase 2 development.

Speaking at the group's third-quarter results briefing on Thursday, Kok did not disclose the amount of financing the property developer is seeking.

In September last year, E&O secured RM780 million in financing facilities from AmBank Group to fund the ongoing development of Phase 2. The group had previously expected to complete reclamation works only by end-2028.

“We are certainly very excited with the outcome of the progress. It was Datuk’s idea that we should accelerate the works, so we may be about a year ahead of schedule,” Kok said, referring to controlling shareholder Datuk Seri Tee Eng Ho.

“There was always this question of whether we would be able to finish it. I think this demonstrates that we not only have to respond to buyers, but it is just as important to meet the expectations of the Penang state government,” he said.

While reclamation for Phase 2 is expected to be completed by December 2027, infrastructure works are targeted for completion by 2029, Tee said at the briefing.

Andaman Island is a 760-acre reclamation project located off Gurney Drive in Penang. Phase 1, spanning 253 acres, carries a gross development value (GDV) of RM20 billion and has seen six projects launched: The Meg, Arica, Senna, Fera, The Lume and Maris. Phase 2, covering 507 acres, has an estimated GDV of RM40 billion.

E&O’s net profit for the third quarter ended Dec 31, 2025 (3QFY2026) doubled to RM63.51 million from RM30.9 million a year earlier, underpinned by stronger property revenue recognition.

Revenue for the quarter increased 45.41% to RM243.92 million from RM167.74 million previously.

The higher earnings were mainly driven by increased contributions from ongoing projects including Arica, The Lume, Fera and Senna Phase 1 and 2, as well as new launches such as Maris, Fera and Senna Phase 3 and 4, and Laman Embun in Elmina West.

The group declared an interim dividend of one sen per share, to be paid on April 8.

For the first nine months of FY2026, net profit jumped 61.09% to RM159.17 million from RM98.8 million in the previous corresponding period. Nine-month revenue increased 25.25% to RM631.79 million from RM504.43 million.

Shares of E&O closed up two sen or 2.76% at 74.5 sen on Thursday, valuing the group at RM1.88 billion.