- Net Profit fall of 38% for 3Q 2016 to $225 million
- Earnings Per Share was 35.3 cents, down 43% from 9M 2015's 61.7 cents
- Annualised Return on Equity of 7.6%
- Economic Value Added decreased to $39 million from $456 million
- Cash inflow of $552 million, compared to cash outflow of $784 million a year ago
- Net gearing was 0.57x
Keppel Corporation faces a challenging environment on
- Slow global growth
- Continuing challenges in offshore sector despite gradual recovery in oil price
- Resilient urbanisation trends in Asia
Although there is a gradual recovery in oil prices from the February 2016's low of US$27 per barrel to the recent US$50 per barrel, offshore & marine division is still far from full recovery. Keppel Corporation had been looking to grow their LNG business to complement the loss in profits from their offshore & marine division. They see a promising future for the LNG market over the long term.
The only good news for 3Q result is the cash inflow of $552 million in this quarter as compared to cash outflow of $306 million for 1Q and $262 million for 2Q. This was due mainly on the reduction in the working capital requirements. They had been laying off close to 8000 or 26% of their workforce for the first 9 months of the year.
The Group will continue to execute and focus on its multi-business strategy, they will remain poised for new opportunities to deliver sustainable value for their customers and shareholders in the long run.