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Companies

Keppel rides high on strong condo sales

Published on Jul 20, 2012

By Grace Chng, Senior Correspondent


A STRONG performance from Reflections at Keppel Bay delivered a sterling set of second-quarter numbers for Keppel Corp.

Robust sales at the condo helped the firm record net profit of $521 million for the three months to June 30, up 35.4 per cent on the same period a year ago.

Revenue for the period came in at $3.5 billion, a rise of 52.2 per cent on the $2.3 billion recorded previously.

The half-yearly numbers were equally stellar. Sales hit $7.75 billion, up 69.3 per cent on a year earlier, while earnings were up 83 per cent to $1.27 billion.

Earnings per share for the quarter were 29.1 cents, up 34.7 per cent, while net asset value came in at $4.67, up 8.1 per cent from $4.32 as at Dec 31.

The company announced an interim dividend of 18 cents per share.

Revenue from the property division surged 241 per cent to $2.15 billion for the first half.

Much of this was due to one-time profits from flats sold under the deferred payment scheme and would not be repeated in the second half.

The offshore and marine unit continued to do well, with $2 billion in new orders secured to date.

Its new order book stands at $7.6 billion with deliveries extending until 2015.

Keppel said in a statement yesterday that it is readying itself to meet the expected growing demand for offshore rigs and support vessels as oil firms step up exploration work.

Chief executive Choo Chiau Beng highlighted two issues that will impact this unit - tighter foreign worker quotas and the aggressive pricing by competitors.

He said in a statement that the firm will rely on bringing new product designs and innovations as well as productivity improvements to its yards to ensure projects are completed efficiently and safely.

Mr Choo also stressed that the volatile global environment would be a challenge. 'The heightened uncertainty in the world today warrants absolute prudence and total vigilance in managing the risks in our businesses,' he added

Keppel shares rose 18 cents to $11.24 yesterday.

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