Keppel expects 4.0% net profit growth for FY2012E

Keppel Corporation said year-on-year increase of 9.6% in net profit is expected for FY2010E. A slow and steady growth in its net profit is forecasted for the next three years. They forecast year-on-year increases of 2.3% and 4.0% in net profit for FY2011E and FY2012E.

They expect slower growth in FY2011E because Keppel secured fewer offshore and marine orders during the financial crisis. In addition, the cooling measures on the property market imposed by the Singapore and Chinese governments are expected to result in slower growth in property sales in FY2011E. Nevertheless, Keppel expects faster growth of 4.0% in FY2012E as Keppel has started to obtain more orders for oil rigs. The property demand is also likely to improve in FY2012E after achieving greater stability in property prices in FY2011E.