Weak logistics business gives Keppel T&T headaches

Q4 profit from the segment declined 77%.

Keppel Telecommunications & Transportation is having a series of headaches from its logistics business after recording a slump in operating profit for 4Q16.

Keppel T&T's logistics business remained the major drag as its yields slumped 77% to $0.6m on the back of a weak occupancy rate and high start-up costs arising from its new China projects.

According to UOB KayHian, start-up costs were high for its Tianjin project for which occupancy rate has yet to pick up. Meanwhile, its Lu’an project is expected to only kick-off operations in 1Q17.

"Going forward, the outlook for KPTT’s China logistics business remains challenging but management is optimistic about its Southeast Asia business. Nonetheless, we were previously too early with calling out a bottoming in performance and the recovery of its logistics segment may only take place further down the road," UOB said.

The people you want to reach are already in this room.

Every quarter, SBR lands on the desks of the founders, CFOs, and directors running Asia's most consequential companies. Every day, they open our newsletter and read our website. It's a room that took twenty years to build — and it's the one most of our partners are trying to get into.

The good news is that the door is open. We work with companies on thought leadership articles, sponsored content, industry summits across Southeast Asia, regional awards programmes, podcasts, and media placements in print and digital. The shape of the right partnership depends on what you're trying to do, which is why we'd rather start with a conversation than send a rate card.

If you have something this room should know about, tell us. We'll tell you honestly whether we can help, and how.

No rate cards until we understand the brief. It's a better use of everyone's time.

Book a meeting

| Or download the media kit (PDF)

240,000 senior readers quarterly in print Top 1,700 Singapore companies reached

7 markets across Southeast Asia