Keppel Corporation net profit jumped 20% to $403m

Reveals plans to continue the upsurge.

Keppel Corp’s net profit for 3Q 2013 was $403 million, excluding revaluation, major impairment and divestments, which is 20% higher than the same period last year, Keppel Corporation CEO Choo Chiau Beng announced in his results report.

On a nine months basis, net profit was $1,080 million, 33% lower than the same period last year, in the absence of revenue recognition from deliveries of Reflections at Keppel Bay units under the deferred payment scheme. Annualised ROE was 15.4% and EVA declined to $648 million from $1,245 million.

"We are mindful of the challenges ahead of us but we will continue to focus on capturing opportunities and creating value through technology and innovation as well as process and facility enhancements," said Choo.

Breaking down the performance of each business arm, Choo said Keppel Offshore & Marine has so far secured about $5 billion in new orders. Net orderbook stands at a record of $13.6 billion as at end September with work extending to 2019.

"In Offshore & Marine, the discoveries in the North Sea, Mexico and Africa continue to fuel optimism and investment for further exploration work. The aging deepwater fleet as well as high utilisation and day rates for newer and more advanced jackups and ultradeepwater units will continue to contribute to sustained demand for our products and services," said Choo, adding that its Near Market, Near Customer strategy has worked well for the company.

Keppel Infrastructure, meanwhile, has focused on building up its strengths in our power and gas business, tightening operations of WTE facilities in our portfolio and providing related technology solutions, said the CEO.

In particular, Keppel T&T continues to build on its reputation as a choice provider for high-quality, reliable logistics and distribution services in China.

The Property Division is performing solidly, having sold over 3,600 homes year to date, surpassing the total number of 2,350 homes sold in 2012.

"With a strong financial position, Keppel Land will be able to make strategic acquisitions in its key markets," said Choo.

"Meanwhile, we will continue to grow our fee-based income to capture greater value for the Group. While Keppel REIT has further strengthened its portfolio in Australia, Alpha Investment Partners has successfully closed the Alpha Asia Macro Trends Fund II with US$1.65 billion," he added.

"As we move into the last quarter of 2013, we expect volatility and challenges in our operating environment. Keppel has performed creditably, not just by leveraging existing strengths and competencies but also actively seeking out new opportunities and growth adjacencies. Ultimately, we are focused on creating enduring value for our stakeholders through maintaining our lead as a provider of choice for solutions in the offshore & marine industry and sustainable urbanisation," he concluded.