Keppel Corporation has announced that its net 2010profit before exceptional items surged 12 percent to S$1.419 billion from S$1.265 billion in the previous year.
“I am pleased to announce that 2010 was another record year for Keppel Corporation. Net profit grew by 12 percent to a new high of just over $1.4 billion. For the fourth consecutive year, our Return on Equity has remained above 20 percent. Economic Value Added has increased to $1,035 million at year end,” said Mr. Choo Chiau Beng, Chief Executive Officer of Keppel Corp.
Though profit for the year climbed 15.1 percent to S$2.11 billion from S$1.83 billion in 2009, full year revenue dropped 20.1 percent year-on-year to S$9.78 billion from last year’s S$12.25 billion, mainly attributed to a reduced order book for its marine and offshore segment.
For its property division, the company “has done well last year, with Keppel Land’s net profit surpassing S$1 billion for the first time,” said Mr. Choo, adding that 2010 saw a significant milestone in its property division.
“With China now a major component of the regional strategy, we established Keppel Land China to consolidate and sharpen our focus on execution and delivery in this key growth market and maximise value creation,” he said. “Since then, we have acquired land in Chengdu and Nantong and will continue to scan the market for attractive land acquisitions.”
He noted that the successful completion of the asset swap between Keppel Land and K-REIT Asia involving Phase One of MBFC, Keppel Towers and GE Towers is a strategic move to unlock value for both companies and ensure that assets are optimally utilised for value creation.
Looking forward, Mr. Choo said the cooling measures in Singapore and China will hopefully stabilise the markets in both countries and create a more “sustainable growth path”.
“We believe in the fundamentals of demand from the region’s growing middle class for homes and will continue to position ourselves to capture value. The focus is on developing more properties in key markets such as China and Vietnam that have continued to show steady growth,” he said.