Keppel Corp profits crashed 29.7% to $159.28m in Q3

Pre-tax profit from its property division nearly halved to $123m amidst lack of divestment gains.

Keppel Corporation saw its net profit slid 29.7% YoY to $159.28m in Q3 from $226.62m in 2018, an announcement revealed. This was blamed on the absence of gains from selling a commercial development in Beijing and higher net interest expense.

However, this was partly offset by higher contributions from associated companies as well as property trading projects in China and Singapore.

Group revenue surged 60% to $1.3b over the same period, driven by higher recognition from offshore & marine, property and infrastructure projects, increased sales in the power and gas business and from the consolidation of M1’s results.

Furthermore, Keppel Corp’s pre-tax profit went down 32% in Q3 to $227m from $107m in 2018. Its property division had suffered the most as its pre-tax profit plunged by $121m to $123m over the same period, no thanks to the absence of divestment gain and higher net interest expense, from property trading projects in China and Singapore.

The pre-tax profit of the offshore & marine division was at $8m, which was $2m than in Q3 2018. This was mainly due to net interest expense in the current period as compared to net interest income in the same period last year and higher share of associated companies’ losses. Investment division’s pre-tax profit also dipped by $16m to $4m, blamed on the fair value loss on KrisEnergy warrants.

On the other hand, Keppel Corp’s infrastructure division saw its net profit up by $32m to $92m, boosted by higher share of associated companies’ profits, dilution gain arising from Keppel DC REIT’s private placement exercise as well as higher contribution from energy infrastructure and environmental infrastructure segments.