Keppel Corp reports 38.4% drop in Q2 net profit to $153m

Keppel's net profit came in at $153 million for the three months to June 30.
Keppel's net profit came in at $153 million for the three months to June 30.PHOTO: ST FILE

Earnings plunged at Keppel Corporation in the second quarter, due in large part to the absence of gains from collective sales of development projects, it announced yesterday.

Net profit came in at $153.4 million for the three months to June 30, down 38.4 per cent from $249.1 million for the same period last year.

Earnings per share declined by the same magnitude, down 38.7 per cent to 8.4 cents from 13.7 cents.

The earnings decline came despite a 17 per cent year-on-year rise in revenue to $1.78 billion.

All divisions registered higher revenues during the quarter except the offshore and marine unit.

Keppel Corp declared an interim cash dividend of eight cents a share for the first half, with the dividend payable on Aug 6.

Net asset value per share dipped marginally to $6.12 as at June 30, compared with a (restated) $6.20 six months earlier.

The firm disclosed that telco M1 netted more than 15,000 new customers within a month of launching a simplified plan in May to replace its previous 19 plans.

This took M1's base to 2.25 million customers as at June 30, an increase of about 80,000 year on year.

  • 39%

    Keppel Corporation's net profit came in at $153 million for the three months to June 30, down 39 per cent on the same period last year.

Keppel Corp posted net profit of $356 million for the first half, 39 per cent below the $586 million achieved a year earlier. This was also mainly due to lower contributions from collective sales of development projects.

Chief executive Loh Chin Hua said in a results briefing webcast that the United States-China trade tensions have had a limited, direct impact on the group. If the conflicts worsen, Keppel Corp said it is not only prepared to deal with the possible challenges, but also to seize opportunities that may arise.

Keppel Corp shares closed down 1.64 per cent to $6.59 each before results were released yesterday.

A version of this article appeared in the print edition of The Straits Times on July 19, 2019, with the headline 'Keppel Corp reports drop in Q2 net profit to $153m'. Subscribe