SINGAPORE (Oct 19): Keppel Corporation has announced earnings of $291.8 million for the 3Q17 ended Sept, up 30% from $224.5 million in 3Q16.
This came on the back of higher profits from the group’s China and Vietnam property trading, power & gas and asset management businesses, as well as the sale of investments.
Revenue for the quarter grew 11% to $1.6 billion compared to $1.5 billion a year ago.
Pre-tax profit for the property division rose 27% or $53 million to $252 million due mainly to higher revenue from Vietnam.
Pre-tax profit for the infrastructure division came in at $47 million or $7 million higher than a year ago due to higher sales in the power & gas businesses, as well as progressive revenue recognition from the Keppel Marina East Desalination Plant project.
Pre-tax profit for the investments division increased by $38 million to $63 million due mainly to higher share of profit from k1 Ventures, higher contribution from the asset management business and profit on sale of investments, partly offset by the share of loss in KrisEnergy.
See also: Envictus reports profit turnaround with earnings of RM50.6 mil
Pre-tax profit for the Offshore & Marine (O&M) division and its associated companies dropped by $21 million to $1 million.
All in, Keppel’s pre-tax profit for 3Q grew 27% to $363 million.
In its outlook, 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.
See also: PNE Industries reports earnings of $1.3 mil for FY2024, up 70.5% y-o-y
In a separate filing, Keppel has announced it will establish a new business unit, Keppel Urban Solutions (KUS) as an end-to-end integrated master developer of smart, sustainable precincts in the Asia Pacific region.
The new unit’s offerings will include master planning, the development and operation of efficient horizontal infrastructure such as smart utilities and district-level heating and cooling, connectivity and urban logistics, as well as innovative programming to create active and engaging communities.
It will also operate an open platform which enables partnership with best-in-class technology providers to create a smart infrastructure ecosystem, says the group, adding that it is intending for KUS to enter into a strategic collaboration with Microsoft to develop and provide modern smart urban applications, as well as to effectively manage infrastructure and community services in KUS’ projects.
“The formation of KUS is a strategic move which harnesses the Keppel Group’s strong track record in large scale urban developments as well as our strengths and diverse solutions in energy, property, infrastructure and connectivity to create efficient and vibrant smart precincts and cities of the future. It will also advance Keppel’s goal of being a choice solutions provider for sustainable urbanisation,” says Loh Chin Hua, CEO of Keppel Corp.
KUS will leverage the Keppel Group’s more than two decades of experience as the master developer of large scale projects in Asia, including the China-Singapore Suzhou Industrial Park, Sino-Singapore Tianjin Eco-City, Sino-Singapore Jinan Smart City, as well as Keppel Bay in Singapore.
Shares in Keppel Corp closed 11 cents lower at $7.02 on Thursday.
