KEPPEL posted a 7 per cent increase in net profit to S$513 million for the first half ended Jun 30, from S$481 million in the previous corresponding period.
However, its total net profit for H1 was down 91.6 per cent on the year at S$304 million from S$3.6 billion, which included earnings from its now-discontinued offshore and marine operations.
Earnings per share (EPS) stood at S$0.167 for H1 2024, down from S$2.03 the previous year. Excluding its hived operations, EPS would stand at S$0.282 for H1, up from S$0.269 the year before.
Revenue from continued operations fell 13.2 per cent to S$3.2 billion for H1, from S$3.7 billion previously. This was underpinned by lower contributions from the company’s infrastructure and real estate segments.
The lower top-line growth in its infrastructure segment – which principal activities include commercial power generation and construction – came on the back of lower demand by consumers.
Meanwhile, the real estate segment recorded lower revenue from property trading projects in China due to fewer units being completed and handed over, as well as in Singapore and India.
BT in your inbox
Start and end each day with the latest news stories and analyses delivered straight to your inbox.
Its board of directors is proposing a tax exempt one-tier interim cash dividend of S$0.15 per share, unchanged from the amount paid out in the same period last year. It will be paid out on Aug 23, after books closure on Aug 14.
Loh Chin Hua, Keppel’s chief executive officer, highlighted that the company recorded an annualised return on equity of 9.8 per cent in H1 2024, compared with 8.7 per cent the year before.
While he cautioned that the rest of the year would “continue to be challenging”, he is positive on the future prospects of the infrastructure, real estate and connectivity industries.
“We see exciting opportunities ahead as investors’ growing preference for defensive, cash flow generative assets is driving demand for alternative real assets in infrastructure, connectivity and private credit, areas where Keppel has strong expertise,” he said.
Keppel shares were trading 1.5 per cent or S$0.10 lower as at 9.08 am on Thursday.
