Keppel Corporation revenue grew by 9% YoY in Q1

The firm’s net profit also improved in the first quarter of 2022.

Due to higher contributions from its energy and environment segment, the revenue of Keppel Corporation Limited (Keppel) rose by 9% on a yearly basis to $2.068b in the first quarter (Q1) of 2022 from $1.889b in the same period last year. 

Its year-on-year net profit also was higher with increased contributions from all segments excluding urban development, according to the company’s business update for Q1 2022.

The corporation’s net gearing remained stable at 0.69x by 31 March 2022, compared to 0.68x by 31 December 2021.

Keppel also posted $332m in asset monetisation, including the divestment of its interests in Keppel Logistics.

The group also declared more than $3.2b in asset monetisation and received about $2.8b of this amount in cash since it launched the asset monetisation programme in September 2020.

Keppel Offshore & Marine, meanwhile, continued to improve on its performance following a reduced net loss year-on-year in Q1 2022.

It was able to secure $76m worth of new contracts in the Q1 this year for the establishment and integration of floating production storage and offloading topside modules and the jumboisation of dredgers, and is pursuing a strong pipeline of projects.

However, Keppel Land’s net profit for Q1 this year went down year-on-year, mainly because of lower contributions from China property trading projects and the absence of gains from en bloc sales.

Keppel Land sold 540 homes in Q1 2022, compared to 1,360 homes sold a year ago, because of the timing of new project launches, a number of projects will take place later in 2022.

Keppel CEO Loh Chin Hua noted that the corporation performed strongly, noting that it exceeded the $3b mark of their three-year target of $3b to $5b in asset monetisation even as there were geopolitical woes brought about by the Russian invasion in Ukraine. 

Loh also said they enhanced divestment of Keppel Logistics at the end of March 2022, adding that they are making significant progress in discussions on the proposed combination of Keppel O&M and Sembcorp Marine and the resolution of Keppel O&M’s legacy rigs.

“The parties are working towards definitive agreements by 30 April 2022,” said Loh.