k1 Ventures, a unit of Keppel Corporation, reported a net loss of $2.54 million for the first quarter of 2010 compared to a net profit of $638,000 a year ago.

Revenue fell 25% to $14.20 million. The decline in revenue was a result of a decrease in subsidiary, Helm Holding Corporation’s leasing revenue and interest income from fixed deposits, offset in part by the sale of investments.

Unit Helm is expected to continue to be impacted by weakness in rail traffic volumes. The continued decline in the rail leasing market has impacted lease rates and the overall demand for Helm’s assets.

k1 Ventures says management is assessing market fundamentals with a view to identify opportunistic investments, while continuing its focus on current investments and shareholder value enhancement.