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Keppel announce results for the Q4 and 2017 financial year

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LNG Industry,

Keppel Telecommunications & Transportation Ltd. have reported a net profit of S$17.1 million for Q4 2017, up from S$3.1 million for Q4 2016.

The increase has been due mainly to fair value gains from reclassification of an associated company to other investments and the disposal of an associated company. These were partly offset by lower contributions from the Logistics Division and Keppel DC Singapore 3 Pte. Ltd. (KDC SGP 3), of which a 90% stake was divested to Keppel DC REIT in January 2017.

On a full year basis, the net profit of S$51.8 million was lower compared to the S$105.1 million reported for FY2016, largely due to one-off gains of S$56.7 million in the prior year pertaining mainly to the partial disposal of Keppel DC REIT Management Pte. Ltd. (Keppel DC REIT Management).

While revenue decreased by 12% year on year (YoY) to S$43.7 million for Q4 2017, and 9% YoY to S$177.0 million for FY2017, Keppel T&T's share of profits from associated companies and joint ventures grew by 16% YoY to S$11.1 million for Q4 2017 and 7% YoY to S$65.5 million for FY2017. This was due mainly to the contributions from KDC SGP 3 and Keppel DC REIT Management which were reclassified to associates in the Data Centre Division, following the partial disposal of stakes in January 2017 and July 2016 respectively.

Mr Thomas Pang, CEO of Keppel T&T, said, "Keppel T&T is evolving to better meet the fast changing needs of our customers in the logistics and data centre industries. As we sharpen our core capabilities, we are also adapting our business model and optimising operations to meet the challenges and ride the digitalisation wave."

"Our collaboration with the US$1 billion Alpha Data Centre Fund for instance, will enable us to seize more opportunities in the development, operations and maintenance, and management of data centre assets. This will help to grow our bottom line and sources of recurring income over the long term."

Earnings per share for Q4 2017 and FY2017 were 3.1 cents and 9.3 cents respectively, compared to 0.6 cents and 18.9 cents for Q4 2016 and FY2016.

Keppel T&T's net asset value per ordinary share increased to S$1.50 per share as at 31 December 2017, compared to S$1.43 per share as at 31 December 2016.

Net gearing was lower at 0.38x as at end-2017, compared to 0.53x at end-2016. Cash and cash equivalents amounted to S$96 million at end-2017, compared to S$127 million at end-2016.

The Directors of Keppel T&T have declared a tax exempt one-tier dividend of 3.5 cents per share to be paid to shareholders on 9 May 2018.

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