Keppel posts 24% rise in revenue to S$6.8 billion 

Yong Jun Yuan
Published Thu, Oct 27, 2022 · 06:14 PM

KEPPEL Corporation : BN4 0% posted a 24 per cent rise in revenue to S$6.8 billion year on year for the first nine months of 2022. Excluding discontinued operations, the conglomerate’s revenue grew 15 per cent to S$5 billion over the same period.

In its business update on Thursday (Oct 27), the company noted that net profit for the same period also rose year on year due to stronger performance from the energy and environment as well as asset management segments.

Still, net profit for the third quarter of 2022 fell year on year due to the absence of the gain from the en bloc sale of a project in China.

Keppel attributed the growth in revenue to higher contributions from Keppel Infrastructure, Keppel Offshore & Marine (O&M), telco M1 and asset management arm Keppel Capital.

It also noted that its net gearing increased to 0.79 times as at Sep 30, 2022, from 0.68 times on Jun 30, 2022. As at Sep 30, 70 per cent of Keppel’s borrowings were on fixed rates, with an average interest cost of 2.88 per cent and weighted tenor of about three years.

The company attributed the higher gearing ratio to the payment of 2022’s interim dividend and the repurchase of shares as part of its share buyback programme.

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In addition, the company also announced that it has signed revised agreements in connection with the proposed O&M transactions.

“The revised terms simplify implementation, provide greater deal certainty and expedite the completion of the proposed combination of Keppel O&M and Sembcorp Marine, allowing Keppel to further accelerate the execution of its Vision 2030 strategy,” it said.

Keppel chief executive Loh Chin Hua noted that it is well ahead of the company’s three-year asset monetisation target and is on track to exceed the S$5 billion mark before the end of next year. It has announced asset monetisations worth close to S$4.4 billion to date.

Keppel shares rose 0.8 per cent or S$0.05 to close at S$6.65 on Thursday, before the update was released.

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