Keppel Corporation (Keppel Corp) says it has recorded a “slightly higher” net profit y-o-y for the 1QFY2021 ended March, but revealed no figures in its voluntary business update on April 22.
However, the group did reveal that all its key business units – with the exception of Keppel Offshore & Marine (Keppel O&M) – were profitable during the quarter.
That said, Keppel O&M’s performance improved q-o-q, as it returned to positive EBITDA for the 1QFY2021 due to improving margins and productivity.
Group revenue for the quarter grew 1.72% y-o-y to $1.89 billion compared to the $1.86 billion a year ago.
The slightly higher figure was attributable to contributions from the Urban Development and Asset Management segments, and offset by lower revenues from Keppel O&M, which stood 27.6% lower y-o-y at $412 million.
The lower revenue from Keppel O&M was mainly due to the termination of Awilco rigs.
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The group’s net gearing stood lower at 0.88 times compared to the 0.91 times as at end-2020.
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Had the divestment of Keppel Bay Tower been completed in the 1QFY2021, the group’s net gearing would have been 0.83 times.
Keppel Infrastructure’s overall performance remained “steady” in the 1QFY2021 despite the lower revenue, which fell 2.45% y-o-y to $635 million.
Keppel Infrastructure’s EBITDA fell 27.9% y-o-y to $31 million for the 1QFY2021.
Keppel Land says it saw improved performance during the 1QFY2021 with a sales value of $1.55 billion compared to the $320 million in 1QFY2020.
The higher figure was underpinned by higher contribution from property trading projects in China and Vietnam, as well as divestment gains.
Home sales during the quarter tripled y-o-y mainly due to stronger performance in China, Vietnam and Singapore.
Furthermore, the sale of 8,740 overseas units worth some $4.7 billion will be recognised from 2QFY2021 to FY2025.
Keppel Corp’s telco arm, M1, reported 2.3% lower revenue y-o-y to $254 million, mainly due to lower roaming and prepaid revenues.
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M1’s EBITDA fell 24.7% y-o-y to $55 million for the quarter.
Keppel Capital saw a stronger performance y-o-y mainly due to stronger operating results as well as gains from mark-to-market of investments.
Its asset management fees 20% higher y-o-y at $42 million for the 1QFY2021.
“Keppel’s business units made creditable progress in the first quarter of 2021, against the backdrop of a gradual recovery from the pandemic. In line with Vision 2030, we have continued to launch new initiatives, such as the Bifrost Cable System, which will grow our Connectivity business and provide an important platform to harness synergies across various business units including Keppel Data Centres, M1 and Keppel Capital,” says Loh Chin Hua, CEO of Keppel Corp.
Separately, Keppel Corporation announced, on April 20, that it is evaluating the impact of KrisEnergy’s announcement that its restructuring plan was no longer viable and that it is “determining the best course of action for Keppel”.
Shares in Keppel Corp closed 2 cents higher or 0.4% up at $5.33 on April 22.
