Lower contribution from associated companies hits first quarter earnings at Keppel T&T

SINGAPORE - Lower contribution from associated companies and higher taxation sent first quarter earnings at Keppel Telecommunications & Transportation (Keppel T&T) down.

Net profit for the three months to March 31 fell 15.6 per cent compared with the same period last year, to S$13.3 million.

Revenue grew 0.7 per cent to S$48.3 million, on higher revenue from the Data Centre Division. This, however, was offset by lower revenue from the Logistics Division, said Keppel T&T in a filing to the Singapore Exchange on Thursday.

The Logistics Division's revenue decreased due to lower warehousing and port operations revenue.

Earnings per share for the three months was 2.4 cents, down from 2.8 cents last year.

Net asset value per ordinary share was $1.30 as at March 31, equal to what it was on Dec 31 last year.

Keppel T&T added that the slowdown in China and Southeast Asia continues to pose challenges to the Logistics Division's performance.

It also said that during the quarter, the division began operation for a "key fast moving consumer goods customer" in . In Singapore, the division has expanded its footprint in the healthcare sector with more contract wins. The projects under development in Tianjin Eco-city and Lu'an remain on track for commencement of operations later this year, it added.

The Data Centre Division has "maintained healthy occupancy" at its facilities. Keppel Datahub 2 is undergoing its last phase of fit-out works and its net lettable space has been fully contracted, Keppel T&T said.

Construction has commenced for Keppel Datahub 3, it added. A Memorandum of Understanding was also signed with the National Supercomputing Centre in Singapore to explore collaboration in areas of supercomputing, networking and green technology, the firm said.

Keppel T&T also said it has been notified of Keppel Corporation's intention to consolidate Keppel DC Reit Management with three other units into a business trust management. Keppel DC Reit Management is wholly-owned by Keppel T&T.

Keppel Corporation aims to complete the proposed consolidation by the second half of 2016, Keppel T&T said.

Keppel T&T shares closed unchanged at S$1.40 on Thursday. The results were released after the market closed.