Keppel T&T Q3 net profit down 12% on higher operating costs
Singapore
KEPPEL Telecommunications & Transportation (T&T) on Tuesday reported a third quarter net profit of S$11.8 million, 12 per cent lower than the S$13.5 million recorded last year.
The data centre operator said that the decrease was due mainly to higher operating costs, as well as the absence of gain from the partial disposal of a data centre, Keppel DC Singapore 4, in the third quarter of 2017.
This was partially offset by a higher share of profits from associated companies and joint ventures, which increased by 25 per cent to S$20.1 million for the quarter, up from S$16.1 million last year.
Revenue came up to S$47.9 million, up 7 per cent from S$45.0 million the year ago.
During the period, higher data centre facility management income, as well as revenue from the warehousing and channel management businesses, offset the lower revenue from port operations in China, Keppel T&T said.
Net asset value per ordinary share rose to S$1.56 per share as at Sept 30, 2018, compared to S$1.52 per share as at end-2017, while net gearing was 0.31x as at Sept 30, 2018, compared to 0.38x as at end-2017.
Earnings per share for the quarter stood at 2.1 Singapore cents, versus 2.4 cents in the previous year. No dividends have been proposed for the period.
On prospects, Keppel T&T said that its data centre division has signed conditional agreements with the Salim Group to embark on its first data centre development in Indonesia. Together with Salim, it will jointly build and operate a 105,300 sq ft data centre in Bogor, Indonesia.
It is envisioned that the 3-hectare land plot will be the first phase of a larger 7-hectare data centre campus development, with the first phase to be completed by the first half of 2020.
Keppel T&T's logistics division will continue to seek opportunities in urban logistics and expand its channel management solutions for the B2B2E (Business-to-Business-to-Employee) segment, said the company.
It added that UrbanFox (an omnichannel logistics and channel management firm that is majority-owned by Keppel T&T) has onboarded over 260 brands to-date, with preparations underway for the expansion of urban logistics in South-east Asia.
Keppel T&T shares closed flat on Wednesday at S$1.85.
