Keppel : nets higher profit of S$421m for 1H 2017, bolstered by multi-business strategy

Tax exempt one-tier interim dividend of 8.0 cents per share declared.

For the half year ended 30 June 2017, Keppel Corporation Limited (Keppel) reported a net profit of S$421 million, slightly higher than the S$416 million for 1H 2016. Group revenue of S$2,802 million for 1H 2017 was S$566 million, or 17% below that of the same period in 2016.

Performing stably year-on-year, the Property Division was the largest contributor to the Group's 1H 2017 net profit with a 47% share. The Investments and Infrastructure divisions, which contributed 39% and 14% to Group net profit respectively, both registered stronger results during the period. Despite the continuing downturn in the offshore business, the Offshore & Marine Division was able to breakeven on the back of contributions from associates and decisive rightsizing efforts undertaken since the start of 2015.

The Group achieved an annualised return on equity of 6.6% for 1H 2017. Net gearing remained stable at 0.58x as at end-June 2017. Free cash inflow of S$237 million in 1H 2017 was an improvement over the outflow of S$262 million in 1H 2016.

For 2Q 2017, Group net profit was S$161 million, 21% lower than the S$205 million for 2Q 2016, while Group revenue of S$1,554 million was 4% lower than the $1,625 million a year ago. Higher profit contributions from the Property and Investments divisions during the quarter were offset by lower contributions from the Offshore & Marine and Infrastructure divisions.

Mr Loh Chin Hua, CEO of Keppel Corporation, said, 'Our Group has achieved creditable results in 1H 2017, despite much lower contributions from the Offshore & Marine Division. This demonstrates our resilience as a multi-business company delivering solutions for sustainable urbanisation.

'We remain focused on improving the overall quality of our earnings. Recurring income contributed S$150 million or 36% of the Group's net profit for 1H 2017. We are also driving collaboration across our different verticals to capture higher value from all parts of Keppel.'

The Directors of Keppel Corporation have declared a tax exempt one-tier interim dividend of 8.0 cents per share to be paid to shareholders on 8 August 2017.

Financial Highlights

• Annualised ROE was 6.6%
• Net Gearing was 0.58x at end-June 2017
• Free cash inflow of S$237m in 1H 2017 improved from an outflow of S$262m in 1H 2016
• Interim cash dividend of 8.0 cents per share declared

Attachment:
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