Keppel T&T's profits edged up 16.8% to $65.45m in 2018
The increase was due to higher gains from its associated companies.
Keppel Telecommunications & Transportation (Keppel T&T) registered a 16.8% YoY increase in its net profit to $65.45m from $56.95m in 2017, an announcement revealed. Revenue also rose 3.5% YoY in 2018 to $183.22m from $176.99m.
In Q4 however, the firm saw its net profits drop 10.6% YoY to $18.21m from $20.37m for the same period in 2017, whilst revenue advanced 8% YoY to $47.2m from $43.68m.
The increase in revenue was attributed to higher data centre facility management income, as well as higher logistics and channel management business revenue. This was however partially offset by a decline in revenue from the firm’s port operations in China, its financial statement noted.
It attributed the Q4 decline in its profits to impairment loss from an associated company, fair value loss from one of its data centres and overall higher operating expenses. These were partially offset by higher share of profits and fair value gains on investment properties from the firm’s associated companies, Keppel T&T added.
Operating loss for Q4 and for the full year 2018 stood at $13.8m and $5.2m respectively, compared to the firm’s operation profits of $15.8m and $19.7m in 2017 due to higher operating costs in support of Keppel T&T’s new data centre developments and expansion in it logistics channel management business.
“The data centre division has been actively pursuing expansion opportunities beyond the traditional areas of operation,” the firm noted in its financial statement, adding that in Q4, the firm secured a contract to build and operate a data centre in Johor, Malaysia alongside Alpha DC Fund.
Likewise, the data centre division signed a cooperation agreement with Xiangjiang Science & Technology and Cloud Engine Network Technology to pursue data centre projects in China. Work is also set to commence in Q1 2019 at the IndoKeppel Data Centre 1 (IKDC 1) under a joint venture between Indonesian conglomerate Salim Group and Keppel Data Centres.
On the logistics front, the division has been expanding its e-channel management platform on top of enlisting more than 300 brands at online logistics marketplace UrbanFox, Keppel T&T highlighted.
“Keppel T&T continues to seek new investments in accretive assets and divestment of its non-core assets to unlock value and recycle capital,” the firm said.