The sale of data centres by an associated firm was largely behind a fall in revenue at Keppel Telecommunications & Transportation (Keppel T&T) over the past two quarters.
Turnover fell 4.2 per cent to $49.1 million for the three months to June 30, but net profit rose 11.2 per cent to $15.9 million. Earnings for the half-year came in at $31.7 million, up 6.6 per cent, with revenue down 2.9 per cent to $97 million.
Keppel T&T said the drop in revenue was mostly due to the disposal last December of two data centres to Keppel DC Reit. The decline was partially offset by higher revenue from its logistics division, which rose 11 per cent to $77.9 million.
There was also a higher share of results from Keppel T&T's associated companies.
Earnings per share came in at 5.7 cents, up from 5.4 cents a year earlier, for the half-year, while net asset value was $1.17 as at June 30, down from $1.27 at Dec 31.
AT A GLANCE
$97.1 million (-3%)
NET ASSET VALUE PER
ORDINARY SHARE: $1.17 (-8%)
NET PROFIT ATTRIBUTABLE TO SHAREHOLDERS:
$31.7 million (+7%)
EARNINGS PER SHARE:
5.7 cents (+6%)
The logistic division expects high occupancy rates in its new warehouses in Tampines Logistics Hub and in Vietnam-Singapore Industrial Park. It also expects the Tianjin Eco-city distribution centre to be ready late this year with Lu'An logistics park in China operational by early next year.
Keppel T&T shares closed 2.5 cents down at $1.495 yesterday.