Keppel Corporation Limited (Keppel) reported a net profit of S$707 million for the 12 months ended 31 December 2019 with stronger contributions from Keppel Offshore & Marine (Keppel O&M), Keppel Infrastructure and Keppel Capital. This was 25% lower as compared to FY 2018, when the Group had benefitted from S$584 million in gains through the en-bloc sales of development projects and property divestments.

Group revenue grew 27% to S$7,580 million in FY 2019 with higher recognition of ongoing offshore & marine and infrastructure projects, improved sales in the power and gas segment, the consolidation of M1 and higher asset management revenue.

Net profit for 4Q 2019 grew 42% to S$192 million from S$135 million a year ago, underpinned by stronger performance across the Offshore & Marine, Property and Investments divisions. Group revenue for 4Q 2019 was S$2,198 million, 31% higher than the S$1,677 million achieved a year ago due to higher recognition of ongoing offshore & marine and infrastructure projects, the consolidation of M1 and higher asset management revenue.

Mr Loh Chin Hua, CEO of Keppel Corporation, said, “Key business segments of the Keppel Group performed creditably against a volatile backdrop in 2019.

“Our diversification and cost management strategies have returned Keppel O&M to profitability for the first time since FY 2016. Notwithstanding lower gains from lumpy en-bloc sales and divestments, Keppel Land’s operations remain strong with 16% more homes sold in 2019 compared to 2018. Our infrastructure, asset management and connectivity businesses have also contributed substantially to the Group’s performance.

“As we progress beyond 2020, we see Keppel growing as one integrated business providing solutions for sustainable urbanisation. We will continue to deepen collaboration and draw on the synergies of the Group to deliver value to all our stakeholders.”

Offshore & Marine

The Offshore & Marine (O&M) Division registered a net profit of S$10 million for FY 2019 compared to a net loss of S$109 million for FY 2018, underpinned by an increased topline, active cost management efforts and lower impairment provisions. In 2019, the O&M Division secured new contracts of over S$2.0 billion, up 18% from 2018, with gas and renewables making up over 60% of the new orders. As at end-2019, the net orderbook stood at S$4.4 billion.

Property

The Property Division’s net profit of S$517 million for FY 2019 was 45% lower year on year, due mainly to lower gains from the en-bloc sales of development projects and divestments. Excluding en-bloc sales as well as revaluation, impairment and divestment gains in both years, Keppel Land’s net profit in 2019 was about S$260 million, an improvement over the S$236 million in 2018. In 2019, the Property Division sold about 5,150 homes, up 16% from the 4,440 homes sold in 2018.

Infrastructure

The Infrastructure Division’s net profit of S$169 million for FY 2019 was stable year on year. In FY 2019, Keppel Infrastructure’s net profit grew by about 14% to $133 million with improved performance in its Energy Infrastructure and Environmental Infrastructure businesses. Attesting to the Keppel Group’s strategy, Alpha DC Fund and Keppel Data Centres divested Keppel DC Singapore 4 (SGP 4) to Keppel DC REIT during the year, with SGP 4 contributing S$50 million in revaluation and divestment gains.

Investments

The Investments Division registered a net profit of S$11 million for FY 2019 compared to a net loss of S$54 million a year ago, bolstered by stronger contributions from the privatisation of M1 and the asset management business.

During the year, Keppel Capital’s net profit grew by over 19% to S$74 million, while assets under management increased 14% to S$33 billion as at end-December 2019.

Despite a challenging competitive landscape, M1 grew its post-paid customer base to about 1.5 million in 2019, up 11% from 2018. M1 and StarHub have also signed an exclusive agreement to cooperate and submit a joint bid for a 5G licence.

The Directors of Keppel Corporation will be proposing a final cash dividend of 12.0 cents per share for FY 2019. Including the interim cash dividend of 8.0 cents per share paid to shareholders in August 2019, the total distribution for FY 2019 will be 20.0 cents per share, representing a payout ratio of about 51% on the Group’s net profit of S$707 million.

Keppel shares were last traded at S$6.67 a piece.

escveritasEngineeringIndustrial Goods & SvcsKeppel,SingaporeKeppel Corporation Limited (Keppel) reported a net profit of S$707 million for the 12 months ended 31 December 2019 with stronger contributions from Keppel Offshore & Marine (Keppel O&M), Keppel Infrastructure and Keppel Capital. This was 25% lower as compared to FY 2018, when the Group had benefitted from...