Keppel T&T reports 13.1 per cent drop in first quarter net profit to S$11.57m

LOWER revenue from both Logistics and Data Centre divisions resulted in a 13.1 per cent drop in first-quarter net profit for the period ended March 31, 2017, to S$11.57 million from S$13.31 million one year ago for Keppel Telecommunications & Transportation (Keppel T&T). This came on the back of a 15.6 per cent drop in revenue to S$40.72 million from S$48.27 million, one year ago.

Keppel T&T's earnings per share (EPS) during the period was down 12.5 per cent to 2.1 Singapore cents from 2.4 Singapore cents one year ago. Net asset value (NAV) per ordinary share was S$1.44 per share, compared with S$1.43 per share at December 2016.

The company said in a statement that revenue from the Data Centre Division decreased due to disposal of subsidiaries, 90 per cent interest in Keppel DC Singapore 3 Pte Ltd to Keppel DC Reit on Jan 20, 2017 and 50 per cent interest in Keppel DC Reit Management Pte Ltd to Keppel Capital on July 1, 2016. After the disposal, both companies were classified as associated companies of the group.

Operating loss for the quarter was S$1.67 million compared with operating profit of S$6.7 million in the corresponding quarter in 2016 due largely to absence of contribution from subsidiaries disposed, higher start-up expenses and manpower employed to support new developments in the data centre business.