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Keppel Corp announces 'sharp reversal' in 9M2021 net profit, 14% growth in revenue y-o-y

Khairani Afifi Noordin
Khairani Afifi Noordin10/28/2021 6:5 PM GMT+08  • 3 min read
Keppel Corp announces 'sharp reversal' in 9M2021 net profit, 14% growth in revenue y-o-y
Keppel’s net profit for 3Q2021 also grew strongly compared to a year ago, with all segments registering improved performance.
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Keppel Corporation has announced a “sharp reversal” in net profit for 9M2021 from the net loss registered a year ago, with all segments performing better y-o-y.

In a stock exchange filing, the company says it achieved a significant improvement in net profit for 9M2021 compared to the same period last year, even when excluding revaluations, major impairments and divestments in both years.

Keppel’s net profit for 3Q2021 also grew strongly compared to a year ago, with all segments registering improved performance.


See: Keppel, Electricite Du Laos sign exclusive framework agreement to explore renewable energy opportunities

The company’s revenue for 9M2021 was $5.51 billion, 14% higher y-o-y. This is underpinned by higher revenue contributions across all four key segments — energy and environment, urban development, connectivity and asset management.

The company’s net gearing was lower at 0.76 times as at Sept 30, compared to 0.85 times as at June 30. This is mainly due to proceeds from asset monetisation and the issuance of perpetual securities, which were offset by the payment of 2021’s interim dividend.

Meanwhile, the company highlights that the discussions on the proposed combination of Keppel Offshore & Marine (Keppel O&M) and Sembcorp Marine, as well as the establishment of asset co is progressing steadily.

On the back of rising oil prices, the jackup rig market is showing signs of improvement. With utilisation rates improving, Keppel O&M has also been receiving more inquiries on bareboat charters for its rig assets.

In 3Q2021, Keppel announced the proposed acquisition of Singapore Press Holdings (SPH) ex-Media. The company says the requisite approvals have been obtained from the Monetary Authority of Singapore and Australia’s Foreign Investment Review Board for the proposed transaction.

The transaction is now pending Keppel and SPH shareholders’ approvals for the transaction, court approval for the scheme and the completion of SPH’s media divestment exercise. Both Keppel’s and SPH’s shareholder meetings to seek approval for the proposed transaction are expected in November 2021.

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Keppel Corp CEO Loh Chin Hua says the company has made bold strides forward on its Vision 2030 roadmap and is confident of achieving most of its targets by 2025. “To date, we have announced about $2.4 billion in asset monetisation, received about $1.6 billion of this in cash and are on track to exceed our $5 billion target by the end of 2023.

“The substantial capital unlocked from our asset monetisation programme would allow us to fuel Keppel’s organic and inorganic growth plans, especially in areas such as renewables and decarbonisation solutions, and also reward shareholders for their continued confidence in the company despite the challenging macro environment,” says Loh.

Shares in Keppel closed 3 cents lower or 0.55% down at $5.37 on Oct 28.

Photo: Keppel

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