Keppel T&T posts 13% fall in Q1 earnings

SINGAPORE - Earnings at Keppel Telecommunications & Transportation (Keppel T&T) dropped 13.1 per cent in the first quarter on weaker contributions from both the data centre and logistics divisions.

The company, a unit of Keppel Corporation, reported a net profit of S$11.6 million in the three months to Mar 31, down from S$13.3 million in the same period a year earlier.

Revenue fell 15.6 per cent to S$40.7 million, dragged down by the logistics and data centre divisions, said Keppel T&T in a statement on Tuesday.

Turnover from the data centre division decreased due to disposal of subsidiaries: a 90 per cent interest in Keppel DC Singapore 3 to Keppel DC Reit on January 20, and a 50 per cent interest in Keppel DC Reit Management to Keppel Capital on July 1, 2016.

After the disposal, both companies were classified as associated companies of the group.

Earnings per share came in at 2.1 cents, 12.5 per cent lower than the 2.4 cents previously, while net asset value per share was S$1.44 as at March 31, marginally higher than the S$1.43 as at 31 December 2016.

Shares of Keppel T&T closed half a cent or 0.3 per cent lower at S$1.755 on Tuesday, before the results were announced.