Keppel T&T posts 10.6% drop in 4Q earnings to $18.2 mil
SINGAPORE (Jan 23): Keppel Telecommunications & Transportation (Keppel T&T) saw its earnings fall 10.6% to $18.2 million for the 4Q18 ended December, from $20.4 million a year ago.
The decline was mainly attributed to impairment loss on an associated company, fair value loss on a data centre and higher operating expenses.
This brings the group’s full year earnings for FY18 to $65.5 million, some 16.8% higher than earnings of $56.1 million a year ago.
4Q18 revenue grew 8.0% to $47.2 million, compared to $43.7 million a year ago.
This was mainly due to higher data centre facility management income, and revenue from its logistics warehousing and channel management business.
Operating loss for 4Q18 was $13.8 million, compared to operating profit of $15.8 million a year ago.
This was due mainly to higher operating costs to support new data centre developments and the expansion of its logistics channel management business.
Keppel T&T’s earnings per share dipped to 3.3 cents for 4Q18, from 3.6 cents a year ago.
Net asset value (NAV) increased to $1.58 per share as at Dec 31, 2018, compared to $1.52 per share a year ago.
As at end December, sash and cash equivalents stood at $136.5 million.
Looking ahead, Keppel T&T says its Data Centre Division has been actively pursuing expansion opportunities beyond the traditional areas of operation, and continues to explore innovative new solutions to strengthen its market position in the long run.
Meanwhile, its Logistics Division is expanding its e-channel management platform, with preparations underway for expansion in Southeast Asia.
The group adds that it continues to seek new investments in accretive assets and divestment of its non-core assets to unlock value and recycle capital.
Keppel Corporation and Keppel T&T in September last year announced a proposed scheme of arrangement to privatise Keppel T&T.
Keppel and Keppel T&T are offering $1.91 in cash per share, representing a 40% premium over its then last traded price of $1.36.
The scheme will require approval by Keppel T&T shareholders at an EGM which is expected to be convened in the first quarter of 2019.
Keppel T&T says a document in respect to the scheme of arrangement will be issued to shareholders in due course.
Shares in Keppel T&T closed flat at $1.87 on Wednesday.
