Company briefs :Keppel T&T

Keppel T&T

Keppel Telecommunications & Transportation yesterday announced improved earnings for the second quarter and first half of the year, and its participation in a new data centre fund. For the three months to June 30, its revenue rose 2.1 per cent year on year to $50.18 million, while net profit rose 18.5 per cent to $18.81 million. Half-year turnover grew 1.4 per cent to $98.45 million, pushing net profit for the period up 1.5 per cent to $32.12 million. Net asset value was $1.29 a share as at June 30, down from $1.30 on Dec 31. Earnings per share in the second quarter were 3.4 cents, up from 2.9 cents a year ago.

Contribution from the data centre division - including the Keppel DC Real Estate Investment Trust - was the main earnings driver, but it was partly offset by relative weakness in its logistics division. "The slowdown in China and South-east Asia continue to pose challenges to the logistics division's performance," said Keppel T&T, which also operates logistics facilities in six Asia-Pacific countries. "Occupancy in Singapore logistics facilities were slightly affected by the recent slowdown in domestic retail trade and weaker exports volume, but remained healthy in South-east Asia."

Meanwhile, Keppel T&T, through a joint venture with Keppel Land, will collaborate with Alpha Investment Partners - a unit of Keppel Capital - to set up a data centre fund that will develop some US$1 billion (S$1.4 billion) worth of data centre projects in the Asia-Pacific and Europe, a separate announcement by Keppel Corp said yesterday.

Keppel T&T closed 1.5 cents or 1.07 per cent higher at $1.42 yesterday ahead of the announcements.

Cache Logistics Trust

Cache Logistics Trust yesterday announced a 7.1 per cent year-on-year drop in its second-quarter distribution per unit to 1.989 cents. The DPU in the same period last year was higher due to a special distribution from the proceeds of divestment of Kim Heng Warehouse.

Revenue for the three months to June 30 surged 30.3 per cent to $28.09 million, while net property income rose 21.9 per cent to $22.55 million. Half-year revenue was $55.96 million, up 31.5 per cent. Total occupancy rate of the trust, with a portfolio of 19 logistics properties in Singapore, Australia and China, was 95.8 per cent at the end of June. While demand in Singapore faces headwinds due to economic slowdown, growth in Australia is more encouraging, it said.

Cache slid half a cent or 0.57 per cent to 87.5 cents ahead of the results announcement.

A version of this article appeared in the print edition of The Straits Times on July 21, 2016, with the headline 'Company briefs'. Print Edition | Subscribe