Keppel Corp Q1 net profit falls 5%

SINGAPORE — Keppel Corp said yesterday its first-quarter net profit fell 5.1 per cent in the absence of one-off gains that had bolstered income a year earlier.

Net profit for the three months ended last month declined to S$339 million from S$357 million in the same period last year, Keppel Corp said in a statement after markets closed. Excluding the one-off gains, Keppel Corp CEO Loh Chin Hua said the group’s net profit is largely in line with Q1 2013.

Keppel is the world’s top offshore jackup drilling rig producer and has business in property development and infrastructure. The firm booked revenue of nearly S$3 billion for the quarter, up 8.6 per cent from a year earlier.

The offshore and marine division — the largest contributor to group net profit with a 68 per cent share — secured S$1.9 billion of new orders in the quarter, pushing the company’s net order book to a record S$14.4 billion with deliveries extending into 2019.

Last week, the division extended its footprint into the Chinese market, with a 30-year agreement to manage the Titan Quanzhou Shipyard in Fujian.

Keppel Corp also said its property arm, which sold slightly fewer homes in the quarter as a result of property market cooling restrictions, will focus on innovation and production efficiency.

It expects private residential demand and pricing to further moderate this year, but added that the demand outlook for new homes remains positive over the long term.

“2014 will be challenging, but Keppel is not averse to challenges. Ours is a collective strength and the sum of our parts configures to a cohesive and optimal whole, which lends itself to sustainable growth and value creation. We will continue to seize opportunities with prudent financial discipline and rigorous innovation,” said Mr Loh. Agencies