SINGAPORE (Oct 17): Keppel Telecommunications & Transportation (Keppel T&T) announced that its 3Q18 earnings have dropped by 12.3% to $11.8 million, compared to $13.5 million in 3Q17.

In 9M18, earnings saw a 32.4% increase to $47.2 million from $35.7 million in 9M17.

Revenue for the quarter was 6.6% higher at $47.9 million from $45.0 million in the previous year, due mainly to higher data centre facility management income and logistics warehousing and channel management business revenue, partly offset by lower revenue generated from China port operations as a result of decline in container throughput.

Operating expenses increased 15.9% y-o-y to $52.6 million, while other income declined by 82.1% y-o-y to $0.64 million.

Hence, the group made an operating loss of $3.98 million in 3Q18, compared to operating profit of $3.20 million in 3Q17.

As at Sept 30, the group’s cash and cash equivalents stood at $178.9 million.

To recap, parent company Keppel Corporation, is seeking to privatise Keppel T&T at $1.91 per share.

Under the same scheme of arrangement, Keppel Corporation and Singapore Press Holdings (SPH) will also offer $2.06 for each share in telco M1 they do not own to privatise it.

See: SPH and Keppel in $2.06/share offer to privatise M1; Keppel seeking to privatise Keppel T&T with $1.91/share offer

Keppel T&T will remain invested in M1 at its current stake and will be part of Keppel’s initiative to drive the business transformation of M1.

Shares in Keppel T&T closed at $1.85 on Wednesday.