Keppel Corporation has reported an overall net profit of $498 million for the 1HFY2022 ended June, 66% higher than the net profit of $300 million in the same period before.
The higher overall net profit is due to the group reporting profitability across all segments including its discontinued offshore & marine operations.
The discontinued operations comprise the results of Keppel Offshore & Marine (Keppel O&M), excluding certain out-of-scope assets and other group adjustments.
Excluding the operations from Keppel O&M, Keppel Corporation’s earnings or net profit attributable to shareholders increased by 26.4% y-o-y to $434.1 million for the half-year period.
Earnings per share (EPS) for the period stood 69% higher y-o-y at 27.9 cents.
During the 1HFY2022, Keppel Corporation reported revenue from continuing operations of $3.36 billion, up 16% y-o-y.
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The higher revenue was mainly attributable to a “significant” increase in contributions from the group’s energy & environment and asset management segments, which more than offset the decline in urban development’s revenue.
The energy & environment segment recorded a net profit of $109 million for the 1HFY2022 including discontinued operations, a reversal from the loss of $179 million in the same period the year before.
In the 1HFY2022, Keppel O&M secured $256 million worth of new orders, bringing its net orderbook to $4.4 billion as at the end of June.
The group’s urban development segment saw net profit fall to $168 million from $279 million mainly due to the lower contributions from China trading projects and lower fair value gains from investment properties.
The connectivity segment also saw net profit decline to $10 million from $27 million mainly due to lower disposal gains. The group’s integrated data centre business contributed total earnings of around $25 million during the 1HFY2022.
The asset management segment saw net profit improve by 32% y-o-y to $155 million underpinned by higher fee income and a higher share of fair value gains on investment properties and data centres.
The group’s annualised return on equity (ROE) stood at 8.4% for the 1HFY2022 compared to 5.5% in the 1HFY2021.
As at June 30, cash and cash equivalents stood at $2.08 billion.
For the 1HFY2022, the group has declared an interim cash dividend of 15.0 cents per share, 25% higher than the 12.0 cents per share declared in the same period the year before.
“Keppel has delivered a set of strong results in 1HFY2022 against a challenging global economic landscape. In an extended inflationary environment, demand for real assets with cash flow, such as those which Keppel develops, operates and manages, will continue to grow, auguring well for the group,” says Loh Chin Hua, CEO of Keppel Corporation.
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“These are very exciting times for Keppel as we prepare for a new phase in the Company’s growth journey. When the offshore & marine transactions are completed, the new Keppel will be very different from what we were before. With the global energy transition and decarbonisation efforts, Keppel is in the right space, at the right time,” he adds.
“In line with Vision 2030, we will focus on growing recurring income through our flagship offerings in clean energy, decarbonisation, environmental engineering, sustainable urban renewal and connectivity solutions, with a symbiotic asset management business to turbocharge the group’s growth and create value for all our stakeholders.”
Shares in Keppel Corporation closed 10 cents higher or 1.50% up at $6.77 on July 28.
