Keppel profits dropped 14.9% to $225.67m in Q3

Earning per share fell 15% to $0.124.

Keppel Corporation’s profits slid 14.9% YoY to $225.67m mainly due to losses from the offshore and marine (O&M) as well as the investments divisions, an announcement revealed.

Revenue crashed 19.9% to $1.30b from $1.61b a year ago. The firm also noted that earnings per share fell 15% YoY to $0.124 from $0.146.

For Q3 2018, revenue from the offshore & marine division grew by $36m to $416m supported by higher revenue recognition from ongoing projects. Meanwhile, its property division dropped by $366m to $180m amidst lower revenue from Singapore, China, and Vietnam property trading.

Meanwhile, revenue from the infrastructure division inched up by $48m to $674m due to increased sales in the power and gas businesses which was partly offset by lower progressive revenue recognition from the Keppel Marina East Desalination Plant projects. For investments division, revenue fell by $40m to $25m brought by zero sales paired with lower revenue from the asset management business.

“The group will continue to execute its multi-business strategy, capturing value by harnessing its core strengths and growing collaboration across divisions to unleash potential synergies, whilst being agile and investing in the future," the firm said.

Also read: Keppel-SPH buyout offer extends lifeline to embattled M1

In September, Keppel revealed that they will have a buyout offer for M1 together with Singapore Press Holdings (SPH). They have also announced a scheme to privatise Keppel Telecommunications and Transportation (Keppel T&T).

“These are strategic investments, which would further expand and enhance the group’s earnings whilst positioning Keppel for long-term growth,” Keppel Corp CEO Loh Chin Hua said.