Keppel’s first-quarter profit up a lower-than-expected 4%
Keppel Corp warned of a testing period ahead as it reported a lower-than-expected 4 per cent rise in quarterly profit yesterday.
Keppel executive chairman Lim Chee Onn acknowledged that ‘2008 looks to be a tough year’ as business conditions had deteriorated. But he still has a positive outlook for orders in the medium term.
‘Against this backdrop, our group’s growth moderated sharply compared to previous six years of record growth,’ he said at a results presentation webcast.
Keppel earned $261.7 million for the three months ended March 31, up from $251.6 million in the same period last year.
But the net profits fell below the $303 million average estimate of three analysts polled by Reuters.
The world’s top offshore rig-maker said in a statement yesterday that its revenues grew 9 per cent to $2.2 billion, driven by infrastructure revenues, which rose twofold to $505 million.
This was partially offset by lower turnover from the offshore and marine division. It reported a 9 per cent drop in revenues to $1.4 billion, because of what it described as ‘timing differences in recognition of revenue from the outstanding order book’.
Still, the offshore and marine division remains the largest contributor, making up half of the group’s earnings. Its order book of $11.8 billion stretches into 2011.
Revenue from property fell by 6 per cent to $300 million, as there were no significant new launches this year following the completion of residential projects in Singapore and China in the last financial year.
But rental income from investment properties rose as rental rates and occupancy continued to climb.
Keppel noted that market sentiments for property had been affected by the global market uncertainties and credit crunch, with subdued sales of Singapore private residential properties despite a 4.2 per cent increase in prices in the first quarter.
Net asset value per share was $3.42 compared with $3.28 at the end of last year. Earnings per share was 16.5 cents, up from 15.9 cents a year ago.
Source : Straits Times - 25 Apr 2008
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