Keppel Corp posts 22.1 per cent drop in second-quarter earnings

A file picture of the Keppel FELS yard in Singapore. PHOTO: BLOOMBERG
A file picture of the Keppel FELS yard in Singapore. PHOTO: BLOOMBERG

SINGAPORE - Keppel Corporation has posted a 22.1 per cent drop in second-quarter earnings - still weighed down by the protracted downturn in the offshore marine industry.

Net profit for the three months to June 30 came in at $160.3 million, down from $205.8 million in the same period a year earlier.

Group revenue slipped 4.4 per cent to $1.55 billion. This was on the back of a 38 per cent fall in turnover from the offshore and marine division to $449 million, owing to the lower volume of work, said Keppel in its earnings report on Thursday.

But turnover from the property division climbed 16 per cent to $542 million mainly from higher revenue from Singapore, though partly offset by lower revenue from China, while the infrastructure division's revenue grew 29 per cent to $521 million as a result of increased sales in the power and gas businesses.

Net profit for the half year ended June 30 inched up 1 per cent to $420.6 million, while revenue slid 16.8 per cent to $2.8 billion.

Earnings per share for the quarter was 8.9 cents, lower than the 11.3 cents previously. Net asset value per share stood at $6.40 as at June 30, marginally down from the $6.42 as at Dec 31, 2016.

Keppel has proposed an interim dividend of eight cents, unchanged from previously.

The stock closed 0.2 per cent or one cent higher at $6.53 on Thursday, before the results were announced.

tsjwoo@sph.com.sg