Keppel T&T half year revenue down 3% over data centre disposals

A file picture of Keppel Datahub in Tampines. Keppel Telecommunications & Transportation Group’s revenue for half year ending June 30 decreased by 3 per cent to S$97.1 million mostly due to the disposal of two data centres in December 2014. PHOTO:
A file picture of Keppel Datahub in Tampines. Keppel Telecommunications & Transportation Group’s revenue for half year ending June 30 decreased by 3 per cent to S$97.1 million mostly due to the disposal of two data centres in December 2014. PHOTO: Keppel Corporation

SINGAPORE - Keppel Telecommunications & Transportation (Keppel T&T) Group's revenue for half year ending June 30 decreased by 3 per cent to S$97.1 million, the company announced on Tuesday.

Keppel T&T's net asset value per share also slid to S$1.17 per share, a decrease of 8 per cent from its value of $1.27 at the end of last year.

However, in the same period its net profit attributable to shareholders rose to S$31.7 million, an improvement of 7 per cent while its earnings per share increased by 6 per cent to 5.7 cents.

Keppel T&T said that the drop in revenue was mostly due to the disposal of two data centres to Keppel DC REIT, an associated company under the Group's Data Centre Division, in December 2014.

A higher share of results from the Group's associated companies, however, managed to boost its net profit attributable to shareholders to S$31.7 million.

Looking to the future, Keppel T&T's Logistic Division expects high occupancy rates in its new warehouses in Tampines Logistics Hub and in Vietnam-Singapore Industrial Park (VSIP 1), located in Vietnam's Binh Duong province . The division is also expecting the Tianjin Eco-City distribution centre and Lu'An logistics park in China to be operational by the end of 2015 and early 2016 respectively.

The Data Centre Division, citing high occupancy across the Group's managed data centres, is maintaining a strategy to actively seek data centre development opportunities and acquisitions across Europe and Asia.

Keppel T&T closed two and a half cents down at S$1.495.