Keppel Corporation saw a 45% fall in earnings to $416 million for the half year ended June from a year ago, with its property division now the largest contributor.
Keppel says this was mainly due to weaker operating results from its offshore & marine (O&M) division and also the absence of one-time gains from the infrastructure division compared to the same period a year ago.
Net profit from the O&M business fell 59% to $156 million. In contrast, the property division’s net profit rose 18% to $194 million. Net profit from its infrastructure division declined more than 66% to $41 million.
Earlier this year, Keppel Corp’s largest customer Sete Brasil started to undergo debt restructuring. “We believe that the provision of $230 million made last year remains appropriate and adequate” says Loh Chin Hua, CEO of Keppel Corp.
“We made the provision on the assumption that Sete may not continue ......