Keppel Corp. reported Thursday it swung to a net profit for the January-to-September period, from a year-earlier net loss, with a “significant improvement” even when compared with pre-Covid results, and when excluding revaluations, major impairments and divestments.
The company didn’t provide the net profit figures in its business update, but said all segments posted improved performance.
Revenue for the nine month period increased 14 percent on-year to S$5.51 billion, boosted by higher contributions across the company’s four key segments of energy and environment, urban development, connectivity and asset management, Keppel said.
Loh Chin Hua, CEO of Keppel Corp., said the company was progressing on its Vision 2030 roadmap and was set to meet its 2025 targets.
“To date, we have announced about S$2.4 billion in asset monetisation, received about S$1.6 billion of this in cash, and are on track to exceed our S$5 billion target by the end of 2023,” Loh said in the statement. “The substantial capital unlocked from our asset monetisation program would allow us to fuel Keppel’s organic and inorganic growth plans, especially in areas such as renewables and decarbonisation solutions, and also reward shareholders for their continued confidence in the Company despite the challenging macroenvironment.”
Keppel said talks on the proposed merger of Keppel Offshore & Marine and Sembcorp Marine were progressing, and that the rising oil price was spurring signs of improvement in the jackup rig market. Keppel O&M has also received more enquiries on bareboat charters for its rig assets, the statement said.
Keppel O&M swung to a profit for the nine-month period, from a year-earlier loss on improvements in margins and productivity, as well as a S$90 million reduction in overhead, the filing said.
“Amid industry disruptions related to Covid-19, Keppel O&M continues to work closely with customers and focus on execution. In the third quarter of 2021, Keppel O&M delivered five major projects promptly and without loss time incidents, for which it has received project incentives from various customers,” the company said.
Keppel Infrastructure posted nine-month revenue of S$2.1 billion, up from S$1.7 billion a year earlier, while earnings before interest, taxes, depreciation and amortisation (ebitda) fell to S$86 million from S$119 million a year earlier.
“Keppel Infrastructure has gained traction in the areas of renewables, low-carbon and decarbonisation solutions and continues to position itself to capture such new opportunities in the region,” the company said.
“In the third quarter of 2021, Keppel Infrastructure signed an exclusive framework agreement with Electricite Du Laos as part of the Lao PDR-Thailand-Malaysia-Singapore Power Integration Project to explore importing renewable energy into Singapore. More recently, Keppel Infrastructure also secured a recurring Energy-as-a-Service contract from Perennial Business City,” Keppel said.
In the urban development segment, Keppel Land posted an improved nine-month performance, underpinned by contributions from China and Vietnam property trading projects and divestment gains, the company said.