Keppel T&T posts 17% drop in Q3 earnings to $15.3 million

Keppel Telecommunications & Transportation's net profit slumped 17.1 per cent to $15.3 million in the period ended Sept 30.
Keppel Telecommunications & Transportation's net profit slumped 17.1 per cent to $15.3 million in the period ended Sept 30.PHOTO: KEPPEL DC REIT MANAGEMENT

SINGAPORE - Data centre and logistics provider Keppel Telecommunications & Transportation felt the absence of contributions from two data centres in weaker third quarter results.

Net profit slumped 17.1 per cent to $15.3 million in the period ended Sept 30 after the two centres were rolled into the Keppel DC Reit in December last year.

This reduction in its data business more than offset revenue gains in warehousing and port operations.

Revenue fell 5.1 per cent from a year earlier to $50.9 million, owing mainly to the absence of revenue from the two data centres.

In the nine months to Sept 30, the logistics division posted revenue of $116.0 million, up $8.4 million from a year earlier.

"The logistics division remains focused on improving occupancy at its warehouses in Southeast Asia and operational ," said Keppel T&T in its filing to the Singapore Exchange.

The warehouse at Tampines Logistics Park, which commenced operations in the second quarter, has achieved an occupancy rate of more than 60 per cent with commitments of over 70 per cent, said the group.

At the Tianjin Eco-city distribution centre and Lu'An logistics park in China, marketing efforts are also being ramped up so the take-up rate is expected to be strong when the two facilities commence operations at the end of the year, and early next year, respectively.

The data centre division posted revenue of $31.9 million in the nine months to Sept 30, down $14.1 million from a year earlier.

Higher occupancy at Datahub 2 in Singapore and higher Reit management fees partially offset the loss of revenue from the two data centres .

Nevertheless, the data centre arm has maintained near-full occupancy at its facilities.

During the quarter, Keppel T&T also signed a conditional agreement to acquire a property in Singapore for data centre development, subject to approvals from the relevant authorities.

Earnings per share for the quarter stood at 2.8 cents, down from 3.3 cents a year earlier.

Net asset value per share was $1.20 as at Sept 30, down from $1.27 as at Dec 31 last year.