Record Year So Far for Keppel Corp: Shipbuilding Orders Are Up

SINGAPORE (Dow Jones)–Keppel Corp. (BN4.SG) said Thursday its third-quarter net profit rose 33.3% from a year earlier, beating analysts’ expectations, helped by higher contributions from its property and offshore and marine divisions.

Keppel’s net profit for the three months ended Sept. 30 rose to S$406.1 million from a restated S$304.6 million a year earlier. A Dow Jones Newswires poll of five analysts had forecast net profit of S$358.2 million.

Keppel’s results for the third quarter of 2010 were restated due to the retrospective application of new financial reporting standards.

Revenue rose 18.1% to S$2.70 billion from S$2.29 billion due to higher contributions from its offshore and marine, infrastructure and property divisions, the company said in a statement.

It said its offshore and marine division has secured a record S$8.7 billion of new orders so far this year. The surge in orders has led to a healthy net order book totaling S$9 billion, with deliveries extending into 2014.

The third-quarter net profit contribution from the offshore and marine unit rose 38% from a year earlier to S$340 million. The unit accounted for 74% of the group’s total profit for the January-September period.

The third-quarter net profit contribution from Keppel’s property business rose 65% from a year earlier to S$61 million, with the unit accounting for 15% of the group’s profit for the first nine months of the year.

The quarterly contribution from its infrastructure division fell 7% from a year earlier to S$14 million. The unit contributed around 8% of Keppel’s profit in the first nine months.

“In this trying global environment, I am pleased to report that for the first nine months of this year, Keppel Corporation has managed to achieve a better performance than the same period last year,” Choo Chiau Beng, Keppel’s chief executive, said in the statement.

Choo also said there have been further developments in the much-anticipated 21-rig tender from Brazil’s federal oil company Petrobras earlier this month. “With our good track record in delivery from a well-establishedoffshore yard in Brazil for Petrobras, we hope to secure a fair share of the orders,” he said.

Along with its results, the company also said it appointed Loh Chin Hua, managing director of Keppel Land’s real estate fund management arm, Alpha Investment Partners Ltd., as chief financial officer effective Jan. 1. Loh will replace Teo Soon Hoe, who will step down as group finance director, though will remain on the Keppel board.

-By Matthew Allen; Dow Jones Newswires