Robust property sales boost Keppel Corp’s revenue to S$2.7b

Keppel Land’s 3Q11 net profit rose 65% y-o-y at S$61m due to higher sales of The Lakefront Residences.

The division reported 3Q11 turnover at S$234 million, up 14% y-o-y, due to the brisk unit sales of other trading projects such as Reflections at Keppel Bay and Madison Residences.

Keppel Corp, which posted a higher PATMI of $406 million (+33% y-o-y) for the third quarter, also saw gains in the O&M sector.

Turnover in the company’s O&M division jumped to S$1.64 billion (+12% y-o-y) and 3Q11 net profit increased to S$340 million as Keppel began revenue recognition on rig orders clinched in the last quarter of 2010.

In a statement, Phillip Securities Research noted that Keppel’s O&M operating margin growth have remained “pretty resilient” despite the lower contract value of the rig projects it clinched in 2010 compared to its orders prior to the 2008 financial crisis.

The research agency also predicted that the division will continue to enjoy higher profit in the coming quarters as subsequent revenue is recognized from its multiple rig orders in 1Q11/2Q11.

Revenue from Keppel’s infrastructure division, however, slipped 7% y-o-y to S$14 million.

The higher revenue from the Singapore co-gen power plant was partly offset by lower revenue from Keppel Integrated engineering (KIE).

KIE has handed over the domestic waste project in Qatar to their clients and have started the operational and maintenance phase which will provide a steady recurring income stream.