Singapore's Keppel Corp said its third-quarter net profit fell 30 percent to S$159 million. Higher interest expenses and the lack of gains from a commercial development divestment in Beijing were cited as the primary reasons for the fall.
Keppel said revenue jumped 60 percent to S$2.07 billion from S$1.30 billion. The rise was mainly due to higher income from offshore and marine infrastructure projects and higher sales in the power and gas business.
Even as earnings per share (EPS) dropped to 8.8 Singapore cents, Keppel said there was no dividend for the three months to September.
Revenue from the property division rose by S$205 million to S$385 million, while revenue from the infrastructure business expanded by S$68 million to S$742 million.
Keppel Corp CEO Loh Chin Hua said the company's data centre business is a new growth area, according to Business Times. "The injection of Keppel DC Singapore 4 into Keppel DC Reit reflects Keppel's business model and our ability to create value for different stakeholders by hunting as a pack. Over the past five years (2014-2018), the Keppel Group achieved earnings of about S$430 million from the data centre business, not including the approximately S$270 million premium over the carrying value of Keppel's stake in Keppel DC Reit," Keppel CEO Hua said.
Keppel had reported a fall in net profits in the second quarter as well. Net profit was down at $153.4 million for the three months to June 30, which was 38 percent down from $249.1 million posted in the corresponding quarter a year ago.
