Dilution gain boosts Keppel T&T's Q2 profit

Keppel T&T says it continues to pursue opportunities at home, in Asia and Europe to further expand its portfolio. It is also continuing a strategic review of its China logistics portfolio.
Keppel T&T says it continues to pursue opportunities at home, in Asia and Europe to further expand its portfolio. It is also continuing a strategic review of its China logistics portfolio.PHOTO: KEPPEL CORP

Bottom line lifted by Keppel DC Reit's private placement exercise

While Keppel Telecommunications & Transportation (Keppel T&T) spent more on operations and saw turnover decrease in its second quarter, a dilution gain following Keppel DC Reit's private placement exercise helped lift its bottom line.

Net profit for the three months ended June 30 more than doubled to $26 million from $10.9 million the preceding year, the company said in a Singapore Exchange filing yesterday.

Revenue shrank 4.9 per cent to $45.3 million from the previous year.

The decrease in revenue was due partly to lower project management fee income from the data centre division and lower container throughput at Keppel T&T's ports in China, though this was partially offset by the warehousing and channel management business.

The group also saw operating costs go up 7.1 per cent to $48.3 million due to the need to support new developments in the data centre business and logistics operations.

But the dilution gain helped boost operating profit by $13.6 million.

Earnings per share for the three months went up to 4.6 cents from two cents in the year-ago period.

  • AT A GLANCE

  • REVENUE: $45.3 million (-4.9%)

    NET PROFIT: $26 million (+137.8%)

For the six months ended June 30, net profit surged 59.5 per cent to $35.4 million from the previous year. Revenue slipped 0.3 per cent to $88.1 million.

Six-month earnings per share jumped to 6.3 cents from four cents in the year-ago period.

The company said it continues to pursue opportunities at home, in Asia and Europe to further expand its portfolio.

The logistics division is preparing to introduce omni-channel services to regional markets where it already has a presence, and has secured more than 110 brands on UrbanFox's marketplace since the multi-channel logistics and sales marketing solutions brand was launched in October last year.

Keppel T&T also continues a strategic review of its China logistics portfolio.

The group's net asset value per ordinary share increased to $1.54 per share as of June 30, compared with $1.52 per share as of end-2017.

No dividend was proposed for the quarter ended June 30.

Keppel T&T shares closed trading unchanged at $1.44 yesterday.

A version of this article appeared in the print edition of The Straits Times on July 19, 2018, with the headline 'Dilution gain boosts Keppel T&T's Q2 profit'. Print Edition | Subscribe