Keppel Corporation has reported a 22.1 per cent drop in second-quarter earnings, still weighed down by the ongoing downturn in the offshore marine industry.
Net profit for the period ended June 30 came in at $160.3 million, propped up largely by its property division, down from $205.8 million in the same period a year earlier.
Group revenue slid 4.4 per cent to $1.55 billion as turnover from the offshore and marine division fell 38 per cent to $449 million due to the lower volume of work.
But revenue from the property division rose 16 per cent to $542 million, owing to higher turnover from Singapore, though partly offset by lower contributions from China. Revenue from the infrastructure division grew 29 per cent to $521 million as a result of higher sales in the power and gas businesses.
Earnings per share was 8.9 cents, lower than the 11.3 cents previously. Net asset value per share stood at $6.40 as at June 30, just down on $6.42 as at Dec 31 last year.
Net profit for the half year ended June 30 inched up 1 per cent to $420.6 million, even as revenue slid 16.8 per cent to $2.8 billion.
Keppel chief executive Loh Chin Hua told a briefing yesterday that the group has managed to deliver creditable results despite the much lower contributions from the offshore and marine division, which demonstrates its resilience as a multi-business company.
AT A GLANCE
NET PROFIT: $160.3 million (-22.1%)
REVENUE: $1.55 billion (-4.4%)
DIVIDEND PER SHARE: 8 cents (Unchanged)
The property division was the largest contributor to the group's half-year net profit with a 47 per cent share, followed by the investments division at 39 per cent, and infrastructure at 14 per cent.
Mr Loh said the property business will likely remain as Keppel's biggest earnings generator in the coming quarters, given the visible pipeline of sales that will be recognised once projects are completed.
As for the offshore and marine business, he said Keppel Offshore & Marine will focus on the liquefied natural gas market as it looks for new avenues to boost top lines.
Mr Loh added that recurring income made up $150 million or 36 per cent of the group's overall net profit.
"We are driving collaboration across the different verticals, and capturing higher value from all parts of Keppel," he said, adding that the group aims to double Keppel Capital's $25 billion assets under management over the next five years.
Keppel proposed an interim dividend of eight cents, unchanged from previously.
The stock closed 0.2 per cent or one cent higher at $6.53 yesterday, before the results were announced.