SINGAPORE (July 18): Keppel Telecommunications & Transportation (Keppel T&T) announced 2Q18 earnings More than doubled to $26.0 million, compared to $10.9 million in 2Q17 on higher other income.
This brings 1H18 earnings to $35.4 million, 59.5% higher than $22.2 million in 1H17.
However, revenue for the quarter was down by 4.9% to $45.3 million from $47.6 million a year ago.
This was due mainly to lower data centre project management fee income and container throughput from the China port operations, partly offset by higher revenue generated from warehousing and channel management business.
Operating expenses were also up by 7.1% y-o-y to $48.3 million.
During the quarter, the group recorded other income of $19.1 million, compared to other expenses of $0.1 million last year.
This was attributable to gain recognised from the dilution of interest in an associated company.
As at June 30, the group’s cash and cash equivalents stood at $105.7 million.
Thomas Pang, CEO of Keppel T&T says, “Our efforts to transform the Logistics business and grow the Data Centre business are progressing on track, as we position Keppel T&T to seize growth opportunities from the digitalisation wave for long term, sustainable growth.”
“We are benefiting from our business model of capturing value from data centre development, ownership and management through our collaboration with Keppel Capital’s Alpha DC Fund and Keppel DC REIT. Together, we have been actively pursuing opportunities to expand our portfolio in current as well as new markets across Asia and Europe. On the Logistics front, we have further extended our service offerings beyond B2B to capture the B2C segment through our full suite of omnichannel logistics and channel management solutions,” adds Pang.
Shares in Keppel T&T closed at closed at $1.44 on Wednesday.