Keppel Corp Net Profit Slows on Overseas Units
Jan 22nd, 2016
Keppel Corp, the holding company of one of Singapore’s biggest property developers Keppel Land, reported its net profit for the financial year of 2015 retreated 19 percent to SGD 1.53 billion(USD1.07billion) from SGD 1.89 billion of the year before. Earnings per share was 0.84 cents, the company proposed total cash dividends of 34.0 cents per share for the latest financial year.
The company said it recorded higher contribution from property and investments during the financial year, although it was offset by lower profits from offshore marine and infrastructure business, which included the provisions for its project in Brazil, and after the absence of gains from data centre assets divested from Keppel DC REIT when compared with the financial year of 2014.
Keppel Corp’s subsidiary Keppel Offshore Marine and Infrastructure is world’s largest offshore oil rig builder, it invested in project in Sete Brasil in Brazil.
Company Chief Executive officer Loh Chin Hua said despite frequent media reports of an oversupplied property market in China, the company’s experience has been positive in the market in 2015. Home sales have picked up in several cities in China in the second half of the year. From June 2014 to June 2015, China's Shanghai Stock Exchange increased more than 150 percent, it has fallen since July. Sales in China contributed to 72 percent of Keppel Land's total residential sales volume in 2015, or 3,280 homes, as compared to some 1,900 units in 2014.
Despite headwinds, 2015 was a stronger year for our
property division, Loh said in a statement. Keppel Land
sold about 4,570 homes in 2015, double the units
taken up when compared with 2014.
About 72 percent of these were sold in China and
another 20 percent in Vietnam. The property developer
has set up a joint venture with one of China’s biggest
developers Vanke in the southwest region in China.
In Singapore, Keppel Corp exercised the share swap with Mapletree allowed the company to increase its interest in Keppel Bay Tower from 70 percent to 100 percent in the financial year of 2015.
The company chief executive said Keppel Corp will continue its multi-business strategy and strengthen its recurring income in the year ahead to continue improving its profit bottom line.