Non-O&M businesses underpin 29% yoy increase in 3Q 2017 net income to S$291m

For the nine months ended 30 September 2017, Keppel Corporation Limited (Keppel) reported a net profit of S$712 million, 11% higher than the S$641 million for 9M 2016. Group revenue of S$4,419 million for 9M 2017 was S$408 million, or 8% below that of the same period in 2016.

Performing stably year-on-year, the Property Division was the largest contributor to the Group's 9M 2017 net profit with a 56% share. The Investments and Infrastructure Divisions, which contributed 30% 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. In the year to date, the Division has secured new contracts of about S$1 billion, mainly for newbuild dredgers and LNG-related vessels, as well as the conversion of Floating Production Storage Offloading units.

The Group achieved an annualised return on equity of 7.7% for 9M 2017. Net gearing was lower at 0.50x as at end-September 2017, compared to 0.56x as at end-December 2016. Free cash inflow of S$1,235 million in 9M 2017 was a substantial improvement over the inflow of S$552 million in 9M 2016.

For 3Q 2017, Group net profit was S$291 million, 29% higher than the S$225 million for 3Q 2016, while Group revenue of S$1,617 million was 11% higher than the $1,459 million a year ago. Higher profits from China and Vietnam property trading, the power and gas and asset management businesses, as well as the sale of investments, more than offset lower contributions from the Offshore & Marine Division and associated companies.

Mr Loh Chin Hua, CEO of Keppel Corporation, said, 'Over the last few quarters, we have witnessed how our multi-business strategy and the Group's initiatives are bearing fruit. We are driving collaboration across the Group, to harness synergies, grow new business opportunities, enter new markets and capture higher value from all parts of Keppel.

'The mega trend of sustainable urbanisation is one of the key areas where Keppel is carving a niche with its compelling suite of solutions. We intend to step up efforts to seize opportunities in this space through the establishment of a new business unit, Keppel Urban Solutions (KUS). KUS aims to be an integrated master developer of large-scale mixed-use developments in the Asia-Pacific region, drawing from the diverse strengths and strong track record of Keppel's business verticals.'

Financial Highlights

9M 2017
(S$ m)
9M 2016
(S$ m)
Change
(%)
3Q 2017
(S$ m)
3Q 2016
(S$ m)
Change
(%)
Revenue 4,419 4,827 (8) 1,617 1,459 11
Operating Profit 650 697 (7) 324 185 75
Net Profit 712 641 11 291 225 29
Earnings per Share 39.2 cents 35.3 cents 11 16.0 cents 12.4 cents 29

• Annualised ROE was 7.7%
• Net Gearing was 0.50x at end-September 2017
• Free cash inflow improved significantly to S$1,235m in 9M 2017 from S$552m in 9M 2016

Attachments:
Download - Financial results
Download - Presentation slides
Download - Management speeches

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For more information, please contact:

Media Relations
Teri Liew (Ms)
Deputy General Manager
Group Corporate Communications
Keppel Corporation Limited
DID: (65) 6413 6425
Email: teri.liew@kepcorp.com
Investor Relations
Ivana Chua (Ms)
Assistant General Manager
Group Corporate Communications
Keppel Corporation Limited
DID: (65) 6413 6436
Email: ivana.chua@kepcorp.com

Keppel Corporation Ltd. published this content on 19 October 2017 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 19 October 2017 09:20:08 UTC.

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