Singapore, 18 July 2019 – Keppel Corporation Limited (Keppel) reported a net profit of
S$356 million for the half year ended 30 June 2019, 39% below the S$586 million
achieved a year ago, mainly due to lower contributions from en-bloc sales of property
projects which amounted to S$416 million in 1H 2018.
Compared to 1H 2018, the six months of 2019 saw improved performance at Keppel
Offshore & Marine which returned to profitability, higher contributions from M1 following
the consolidation of its results with the Group, as well as strong earnings growth at Keppel
Infrastructure and Keppel Capital.
The Group’s 1H 2019 revenue of S$3,315 million, was 11% higher than the S$2,993
million achieved in 1H 2018, mainly due to higher sales contributions from Keppel
Infrastructure, Keppel Capital and M1, offset by lower revenues from Keppel O&M and
Keppel Land.
For the first six months of 2019, the Group achieved an annualised return on equity of
6.3%. Net gearing rose to 0.82x as at 30 June 2019, compared to 0.48x as at 31
December 2018, following the privatisation of M1 and Keppel Telecommunications &
Transportation, as well as due to higher working capital requirements, the payment of the
final cash dividend for FY 2018 and the recognition of lease liabilities. Free cash outflow
was S$614 million in 1H 2019 compared to an inflow of S$873 million in 1H 2018 due to
higher working capital requirements and lower proceeds from en-bloc sales.
The Group’s net profit for 2Q 2019 was S$153 million, 39% lower than the S$249 million
for 2Q 2018, in the absence of en-bloc sales of property projects, partly offset by stronger
performance from Keppel Offshore & Marine, Keppel Infrastructure and Keppel Capital.
Group revenue of S$1,784 million was 17% higher than the S$1,523 million achieved a
year ago, with higher contributions across Keppel Infrastructure, Keppel Land,
Keppel Capital and M1.
EPS for half year is 19.6 cents. Estimated FY EPS of 39 cents.
PE is about 17x, which is more or less trading at full value for the current price of $6.59.
Chart wise, doesn't look so rosy!
Not a call to buy or sell.
Pls dyodd.
