Keppel Corp's profits crashed 25.5% to $706.98m in 2019
Its other operating income plunged 67.1% partly from lower gains from disposing subsidiaries.
Keppel Corporation's profit attributable to shareholders crashed 25.5% to $706.98m in 2019, from $948.39m in 2018, the company announced. In contrast, revenue jumped 27.1% to $7.58b over the same period.
The share of profit of associated companies for the year slumped 33.3% to $147.41m, mainly due to lower contribution from associated companies from its offshore & marine (O&M) and investments divisions.
Its other operating income plummeted 67.1% to $176.28m, attributed to lower gain from the disposal of subsidiaries, absence of write-back of provision for claims, loss on disposal of associated companies, lower gain from change in interest in associated companies and fair value loss on investments compared to fair value gain in the prior year.
Further, the group gained $584m through the en-bloc sales of development projects and property divestments in 2018.
In Q4, profit surged 41.5% YoY to $191.40m, with revenue leaping 31.1% to $2.2b.
Revenue from its O&M division jumped by $255m to $775m, mainly attributed to higher revenue recognition from ongoing projects. Revenue from its investments division surged $300m to $340m from the consolidation of M1 and higher contributions from its asset management business.
In addition, revenue from its infrastructure division also grew by $16m to $760m, mainly due to higher progressive revenue recognition from the Hong Kong Integrated Waste Management Facility project.
However, its revenue from the property division fell by $50m to $323m, mainly from lower contributions from property trading projects in Vietnam and China. However, this was partly offset by higher revenue from property trading projects in Singapore.