SINGAPORE - Higher revenue recognition from offshore and marine projects helped rigbuilder Keppel Corp post a strong set of fourth-quarter results on Thursday.
Net profit for the three months to Dec 31 climbed 6.1 per cent from the preceding year to $725.9 million, it said in a Singapore Exchange filing.
This was on the back of a 9.1 per cent jump in revenue to $3.93 billion in the period.
That was largely due to higher revenue recognition from ongoing projects at Keppel's offshore and marine division, the group said.
Its property arm also reported higher sales, mainly from China and the sale of a residential development in Saudi Arabia.
Keppel said in a statement that the oil slump and a projected oversupply of oil rigs have created a "challenging environment".
However, it said that its offshore and marine division has a healthy order book that will keep its yards busy this year and next year.
Its net order book at the end of last year stood at $12.5 billion with deliveries extending into 2019.
" The consumption of energy is projected to grow and is expected to sustain the oil and gas business," it added.
For the full year, the group's net profit rose 2.1 per cent to $1.88 million while revenue gained 7.3 per cent to $13.28 billion.
Earnings per share for the fourth quarter came in at 39.9 cents, up from 38 cents the previous year.
Net asset value per share rose from $5.37 at the end of 2013 to $5.73 as at the end of last year.
Trading in Keppel Corp shares were halted on Wednesday and remained so on Thursday. The counter last closed eight cents down at $8.10 on Tuesday.