Keppel T&T's Q3 earnings rocket 356.5% to S$69.9m, despite revenue drop

A HIGHER contribution from its data centre division boosted results for Keppel Telecommunications and Transportation (KT&T) in its third quarter.

Net profit leapt 356.5 per cent to S$69.9 million from the year-ago period, the group said in a Singapore Exchange filing on Wednesday evening.

This is despite the fact that for the three months ended Sept 30, revenue dropped 8.7 per cent to S$46.5 million from the previous year. The contraction in revenue was due mainly to lower revenue from its logistics division, although this was partly offset by higher revenue from the data centre division.

The latter's higher contribution was thanks to a "gain on disposal of a subsidiary and adjustment to gains from the two data centres disposed in Dec 2014," said KT&T.

Q3 earnings per share rocketed to 12.5 Singapore cents from 2.8 Singapore cents in the previous year. Net asset value per share for the group edged up to S$1.41 as at Sept 30, from S$1.3 as at nine months ago.

In a separate announcement, KT&T said that its wholly-owned subsidiary, Keppel Logistics, is looking to acquire a 59.6 per cent stake in Courex for S$758,326.

Courex is an exempt private company incorporated in Singapore. It provides general logistics services, supply chain management, parcel delivery services, and other customer-oriented logistics services.

KT&T shares closed at 3.5 of a Singapore cent lower, or 1.91 per cent down, at S$1.80 per share on Wednesday.