Keppel promises further data centre developments as its corporation revenue hits $523m
Keppel Corporation Limited reported $125m (S$169m) for its infrastructure division’s net profit for FY 2019.
The company said that in FY 2019, its net profit grew by around 14% to $133m with improved performance in its Energy Infrastructure and Environmental Infrastructure businesses.
Corroborating to the Keppel Group’s strategy, Alpha DC Fund and Keppel Data Centres divested Keppel DC Singapore 4 data centre to Keppel DC REIT during the year, with SGP 4 contributing $30m (S$50m) in revaluation and divestment gains.
The company revealed that its overall revenue was 27.1% higher at S$7.58bn, due to higher recognition of ongoing offshore & marine (O&M) and infrastructure projects.
Keppel reported an overall net profit of $523.1m (S$707m) for the 12 months ended 31 December 2019. This was 25% lower in comparison to FY 2018, according to the company.
“Key business segments of the Keppel Group performed creditably against a volatile backdrop in 2019,” said Loh Chin Hua, CEO of Keppel Corporation.
“Our diversification and cost management strategies have returned Keppel O&M to profitability for the first time since FY 2016.
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“Notwithstanding lower gains from lumpy en-bloc sales and divestments, Keppel Land’s operations remain strong with 16% more homes sold in 2019 compared to 2018.
“Our infrastructure, asset management and connectivity businesses have also contributed substantially to the Group’s performance.
“As we progress beyond 2020, we see Keppel growing as one integrated business providing solutions for sustainable urbanisation.
“We will continue to deepen collaboration and draw on the synergies of the Group to deliver value to all our stakeholders.”
The company revealed that in the Infrastructure Division, it will continue to build on its core competencies in the energy and environment-related infrastructure as well as infrastructure services businesses to pursue promising growth areas.
Keppel Telecommunications & Transportation (Keppel T&T) will continue to develop its data centre business locally and overseas, and also transform the logistics business from an asset-heavy business to an asset-light service provider in urban logistics, while building complementary capabilities in e-commerce.
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