Keppel Telecommunications & Transportation reported on Wednesday its net profit for the fourth quarter fell 10.6 percent on-year to S$18.21 million.
That was mainly on an impairment loss on an associated company, a fair value loss on a data center and higher operating expenses, partly offset by a higher share of profit and fair value gain on investment properties from associated companies, Keppel T&T said.
Revenue for the quarter ended 31 December rose 8.0 percent on-year to S$47.20 million, it said in a filing to SGX after the market close on Wednesday.
The increased revenue was mainly on higher data center facility management income and revenue from logistics warehousing and channel management business, partly offset by lower revenue from port operations in China, the filing said.
The share of results of associated companies and joint ventures for the quarter was S$36.44 million, up 352 percent on-year from S$8.06 million in the year-ago quarter, it said.
It had a S$3.03 million impairment loss on an investment in an associated company in the quarter, and a fair value loss of S$4.63 million on investment properties on the fair value loss of a data center, it said.
Operating expenses rose 21.0 percent on-year in the fourth quarter to S$58.74 million, mainly to support new data center developments and the expansion of the logistics channel management business, Keppel T&T said.
For the full year, net profit rose 16.8 percent on-year to S$65.45 million on revenue of S$183.22 million, up 3.5 percent on-year, it said.
No dividend was declared for the fourth quarter due to Keppel’s offer to acquire all of Keppel T&T’s shares.
In its outlook, Keppel T&T said the data center division has been pursuing expansion opportunities beyond its traditional operations, including working with Alpha DC Fund to secure a contract to build and operate a data center in Johor, Malaysia.
It also pointed to the commencement of work in the first quarter of this year for IndoKeppel Data Centre 1 (IKDC 1) under a joint venture between Keppel Data Centres and the Salim Group.