Keppel Corp 3Q Net Profit Rises 32% on Property Sales

Keppel Corp. (BN4.SG), the world's biggest rig-builder by volume, said its third-quarter net profit rose 32% from a year earlier as improved profitability of its real-estate arm offset lower revenues from its rig-building business.

Net profit for the three months ended Sept. 30 increased to S$457.6 million from S$346.4 million a year earlier, the Singaporean company said in a statement. This was mainly because profits from its property business more than doubled to S$315 million, thanks to improved sales in its China market, it said.

Revenue, however, fell 8.4% to S$2.95 billion from S$3.22 billion, due mainly to lower work volumes at the company's offshore and marine arm.

"In offshore and marine, the discoveries in the North Sea, Mexico and Africa continue to fuel optimism and investment for further exploration work," Keppel Chief Executive Choo Chiau Beng said in the statement.

"The aging deepwater fleet as well as high utilization and day rates for newer and more advanced jackups and ultradeepwater units will continue to contribute to sustained demand for our products and services," he said, but flagged continuing "volatility" in the global business environment.

Keppel said it secured S$4.8 billion of new orders in the nine months ended Sept. 30, taking total orders at its marine and offshore division to S$13.6 billion, with deliveries extending into 2019.
Source: Dow Jones