Keppel T&T posts 81.7% drop in Q3 earnings

SINGAPORE - The absence of gain from an earlier divestment and contributions from subsidaries sold sent third-quarter earnings plunging 81.7 per cent at Keppel Telecommunications & Transportation (Keppel T&T).

The logistics and data centre company posted a net profit of $12.8 million for the three months ended Sept 30, well down from $69.9 million in the same period a year earlier.

It said on Tuesday that one-off gains amounting to $55.8 million were recognised in the third quarter of 2016 on the disposal of a subsidiary and adjustment for sale proceeds of data centres disposed, which were partly offset by an impairment loss on fixed assets.

Excluding the one-off gains, net profit would be down by 27 per cent instead.

Revenue slipped 3.3 per cent to $45 million, due mainly to weaker warehousing turnover in the logistics division and absence of revenue due to disposal of the 90 per cent and 50 per cent interest in Keppel DC Singapore 3 and Keppel DC Reit Management.

Net profit for the nine months ended Sept 30 was down by 66 per cent to $34.6 million, while revenue shrank 8 per cent to $133.3 million.

Earnings per share for the quarter sank 81.6 per cent to 2.3 cents, while net asset value per share was $1.45 as at Sept 30, up slightly on the $1.43 as at Dec 31 last year.

Shares of Keppel T&T closed 0.7 per cent or one cent lower at $1.48 on Tuesday, before the results were released.