Keppel posts 48.1 per cent drop in net profit for second quarter

Net profit for the second quarter slumped 48.1 per cent to $205.8 million, down from $396.7 million in the same period a year ago.
Net profit for the second quarter slumped 48.1 per cent to $205.8 million, down from $396.7 million in the same period a year ago.PHOTO: REUTERS

SINGAPORE - Earnings of conglomerate Keppel Corporation took another hit in the second quarter, weighed down by weaker results from its offshore and marine business and a lower contribution from its infrastructure division.

Net profit for the three months to June 30 slumped 48.1 per cent to $205.8 million, down from $396.7 million in the same period a year ago, the group announced on Thursday.

Revenue sank 36.6 per cent to $1.63 billion. The biggest drag on the group's performance was its offshore and marine division, where turnover slid 54 per cent to $720 million due to lower work volumes, project deferments and the suspension of the Sete Brasil contracts.

But the impact was cushioned by the group's property division, which is now the biggest contributor to its bottomline. Revenue from the property division grew 16 per cent to $469 million.

For the half year, net profit fell 45 per cent to $416.3 million, while revenue dropped 37.4 per cent to $3.37 billion.

Earnings per share sank 48.4 per cent to 11.3 cents for the quarter, and dropped 45.1 per cent to 22.9 cents for the half year. Net asset value per share stood at $6.12 as at June 30, down 0.2 per cent from $6.13 as at Dec 31 last year.

The group has declared an interim dividend of eight cents per share, down from the 12 cents per share previously.

Keppel shares closed two cents or 0.4 per cent lower at $5.58 yesterday, before the results were announced.

tsjwoo@sph.com.sg