Keppel T&T third-quarter net profit rose 4% to $14.1m

Revenue much higher but operating margins tanked.

Keppel Telecommunications & Transportation announced that Group revenue in the third quarter at $40.4 million was 18% higher compared to the corresponding quarter in 2012 due mainly to higher revenue from Data Centre and Logistics Divisions.

Operating profit at $5.1 million decreased 11% due mainly to lower contribution from logistics operations, partly offset by higher contribution from data centre operations.

Profit before taxation at $18.9 million increased 5% due to higher contributions from associated companies, partly offset by lower operating profit and higher interest expense.

After taking into account taxation and non-controlling interests, the Group’s net profit attributable to shareholders improved 4% to $14.1 million.

In the nine months to date, the Group’s revenue increased 14% to $117.0 million compared to the corresponding period in 2012 due mainly to higher revenue from Data Centre and Logistics Divisions.

Operating profit at $20.6 million improved 9% due mainly to better performance from Data Centre Division and logistics operations in Southeast Asia and higher sundry income.

Profit before taxation increased 9% to $60.5 million due mainly to higher operating profit and contributions from associated companies, partly offset by higher interest expense.

After taking into account taxation and non-controlling interests, the Group’s net profit attributable to shareholders increased 8% to $45.5 million.