SINGAPORE (April 20): Keppel Group reported a 23% rise in 1Q earnings to $260 million from $211 million a year ago, thanks to improved earnings from the infrastructure and investments divisions, as well as steady contributions from the property division.
Group revenue came in at $1.2 billion, 28% lower compared to a year ago.
Earnings per share were 14.3 cents while Economic Value Added increased by $21 million to $23 million. Annualised return on equity was 7.6%.
At the pre-tax level, group profit was up 24% to $346 million for the 1Q17 ended March.
Pre-tax profit for the infrastructure division increased by $19 million to $37 million due mainly to higher contributions from energy infrastructure and infrastructure services as well as the gain on divestment of its interest in GE Keppel Energy Services.
Pre-tax profit of the investments division came in at $181 million for the current quarter as compared to pre-tax loss of $4 million for the same quarter in 2016 due mainly to the share of profit from Sino-Singapore Tianjin Eco-City, writeback of provision for impairment of investments, recognition of fair value gain on KrisEnergy warrants and profit on sale of investments, partly offset by share of loss in KrisEnergy.
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Pre-tax earnings of the offshore & marine division declined by 99% to $1 million due mainly to lower operating results arising from lower revenue and higher net interest expense.
Pre-tax profit of the property division decreased by $15 million to $127 million due mainly to lower contribution from Singapore property trading partly offset by higher contribution from China property trading.
The property division sold about 980 homes in 1Q17, comprising about 730 in China, 110 in Vietnam and 130 in Singapore. This is about 4% higher than the 940 homes sold in the same quarter in 2016.
The group says it will continue to execute its multi-business strategy, capturing value by harnessing its core strengths and growing collaboration across divisions to unleash potential synergies, while being agile and investing in the future.
Shares of Keppel closed 9 cents lower at $6.55 on Wednesday.
