Keppel T&T takes a profit hit in 2Q12

Increasing overheads and lower sundry income dragged down its bottom line despite 22% higher revenues q-o-q.

In its review of 2Q12 financial results, Keppel Telecommunications & Transportation said operating profit came in at $6.8 million, a decrease of 20% q-o-q. Profit before taxation was at $18.9 million, a decrease of 18% due to lower contributions from the associated companies and higher interest expense. After taking into account taxation and non-controlling interests, the Group’s net profit attributable to shareholders ultimately decreased 19% to $14.2 million.

But when taking a broader view, the Group’s revenue for the 1H12 appeared to fare better, increasing 16% to $68.2 million compared to the corresponding period in 2011. This was due mainly to higher revenue generated by Data Centre and Logistics Divisions.

Operating profit at $13.2 million improved 4% due to better performance from Data Centre Division. Profit before taxation decreased 10% to $37.7 million. This was due to lower contributions from associated companies and increase in interest expense.

After taking into account taxation and non-controlling interests, the Group’s net profit attributable to shareholders decreased 9% to $28.7 million.

Other performance indicators showed that earnings per share for the first half of 2012 was 5.2 cents. Meanwhile, net asset value per ordinary share increased 3% to 73.0 cents per share.