Keppel Corp beats estimates with 11% rise in 4Q profits

Keppel Corp on Thursday expressed confidence about its core rigbuilding business as it unveiled results that beat market estimates. Fourth quarter net profits at Keppel hit $389 million, surging 11 per cent from a restated $352 million from the same period a year earlier. Revenue soared 31 per cent to hit $2.8 billion.

The results for the three months to Dec 31 far exceeded the expectations of a Bloomberg poll of eight analysts, which had predicted a profit of $354.4 million.

Earnings growth for the quarter had been driven by Keppel's property division. Profit contributions from property surged to $131 million, from a restated $22 million a year back. Net profit from Keppel's main offshore and marine business in the fourth quarter was down by 15 per cent to $249 million as more of the profits went to minority interests.

Revenue from the offshore and marine division jumped 29 per cent in the quarter, as Keppel said in a statement that it 'continues to see good prospects for the offshore and marine industry with the projected increase in exploration and production expenditure in the next few years'.