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Chairman’s Message
On behalf of the Board, I present the Keppel Land
Group report for the year ended 31 December 2001.
Financial Performance
2001 was a difficult year for the Group, worsened by
the September 11 attacks in the US.
The rapid deterioration of the US economy quickly
spiralled into a global downturn, tripping the fragile
recovery of Asian economies. With most of its major
markets affected, Singapore slipped into its worst
recession in four decades.
Like many companies, Keppel Land was hit by the
weaker economic prospects in Singapore and the
region. With lower contribution from property trading
due to fewer residential sales, revenue fell 40% to
$300.5 million. Higher profit contribution from
property investment from the mostly fully-occupied
office buildings could not offset the shortfall from
property trading.
Chairman Lim Chee Onn
buildings by $239 million, after taking into account
minority interests’ share and a surplus of $51 million
not taken up in 2000. This revaluation deficit was
charged against the previous years’ surpluses of
$898 million accumulated under capital reserves in
the balance sheet.
Chairman’s Message
9
Against a soft residential market in Singapore, the
Company made provisions for a write-down of
$455.1 million in respect of its landbank. As a result,
the Group incurred a loss of $366.5 million after tax
and minority interests. This is in contrast with a profit
of $122.1 million in 2000. Had it not been for the
provisions, the Group’s profit for 2001 would have
been $88.6 million.
As capital values of Singapore office buildings fell, the
Company wrote down the value of its investment
With the provisions and revaluation adjustments
made, shareholders’ funds declined from $2.24 billion
to $1.62 billion at the end of 2001. Consequently, the
Company’s net tangible asset per share fell to $2.28
from $3.16 a year ago. The Group’s debt-equity ratio
including minority interests rose to 1.28 from 0.83
the year before.
The effective tax rate for the Group before provisions
was 24.5% in 2001, unchanged from the previous
year.