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23-10-14, 16:13
http://www.straitstimes.com/archive/wednesday/premium/money/story/keppels-profit-down-95-over-property-curbs-20141022
COMPANIES
Keppel's profit down 9.5% over property curbs
Offshore and marine, investments offset slowdown in real estate business
Published on Oct 22, 2014 1:25 AM
By Chia Yan Min
PROTRACTED property curbs in Singapore and China dragged down third quarter net profit at conglomerate Keppel Corp, which also builds oil rigs and infrastructure projects around the world.
Earnings for the three months ended Sept 30 declined 9.5 per cent to $414.2 million over the same quarter last year.
The lower profit contribution from the company's property division was offset by better performance in the offshore and marine and investments divisions, Keppel chief executive Loh Chin Hua said in a statement yesterday. Revenue for the quarter rose 8.1 per cent to $3.2 billion.
While the offshore and marine segment saw takings increase as a result of higher revenue recognition from ongoing projects, revenue contributed by the property division fell mainly owing to a decline in Singapore and China sales over the same quarter last year, the company said.
Home sales in Singapore fell to their lowest level this year in August amid cooling demand.
The China housing market, which accounts for over 15 per cent of the country's economy, has further softened with sales slowing in the first eight months of the year, and banks becoming more cautious about lending to developers and investors, said Mr Loh.
Despite recent oil price volatility and tepid property markets in Singapore and China, "we remain confident of the long-term fundamentals in our key businesses and industries", he added.
"We are positioning ourselves to seize opportunities that may not otherwise be available in more normal market conditions."
Keppel Land is investing close to $972 million this year to "build up its project pipeline".
It has bought a new residential project with a retail component in Manhattan, New York, for US$70 million (S$89 million) to take advantage of a recovering United States market.
Despite a challenging environment with slowing global demand for oil and gas, falling prices, and declining rates for deepwater rigs, the company believes industry fundamentals are still strong in the offshore and marine sector, said Mr Loh.
"International oil companies are kicking the can down the road but at some point they would have to spend to replenish reserves, and drilling contractors would have to replace their old fleet with new, safer and technologically superior rigs."
Keppel's offshore and marine division secured $3.7 billion of new orders in the first nine months of the year.
It has a net orderbook of $12.7 billion stretching into 2019.
Earnings per share for the third quarter came in at 22.9 cents, down from 25.3 cents in the same quarter last year.
Net asset value per share was $5.53 as at Sept 30, from $5.37 as at Dec 31 last year.
[email protected]
COMPANIES
Keppel's profit down 9.5% over property curbs
Offshore and marine, investments offset slowdown in real estate business
Published on Oct 22, 2014 1:25 AM
By Chia Yan Min
PROTRACTED property curbs in Singapore and China dragged down third quarter net profit at conglomerate Keppel Corp, which also builds oil rigs and infrastructure projects around the world.
Earnings for the three months ended Sept 30 declined 9.5 per cent to $414.2 million over the same quarter last year.
The lower profit contribution from the company's property division was offset by better performance in the offshore and marine and investments divisions, Keppel chief executive Loh Chin Hua said in a statement yesterday. Revenue for the quarter rose 8.1 per cent to $3.2 billion.
While the offshore and marine segment saw takings increase as a result of higher revenue recognition from ongoing projects, revenue contributed by the property division fell mainly owing to a decline in Singapore and China sales over the same quarter last year, the company said.
Home sales in Singapore fell to their lowest level this year in August amid cooling demand.
The China housing market, which accounts for over 15 per cent of the country's economy, has further softened with sales slowing in the first eight months of the year, and banks becoming more cautious about lending to developers and investors, said Mr Loh.
Despite recent oil price volatility and tepid property markets in Singapore and China, "we remain confident of the long-term fundamentals in our key businesses and industries", he added.
"We are positioning ourselves to seize opportunities that may not otherwise be available in more normal market conditions."
Keppel Land is investing close to $972 million this year to "build up its project pipeline".
It has bought a new residential project with a retail component in Manhattan, New York, for US$70 million (S$89 million) to take advantage of a recovering United States market.
Despite a challenging environment with slowing global demand for oil and gas, falling prices, and declining rates for deepwater rigs, the company believes industry fundamentals are still strong in the offshore and marine sector, said Mr Loh.
"International oil companies are kicking the can down the road but at some point they would have to spend to replenish reserves, and drilling contractors would have to replace their old fleet with new, safer and technologically superior rigs."
Keppel's offshore and marine division secured $3.7 billion of new orders in the first nine months of the year.
It has a net orderbook of $12.7 billion stretching into 2019.
Earnings per share for the third quarter came in at 22.9 cents, down from 25.3 cents in the same quarter last year.
Net asset value per share was $5.53 as at Sept 30, from $5.37 as at Dec 31 last year.
[email protected]