April 2010 - Keppel Corporation

4 Sustaining Growth GrowthSustaining good performanceMost of Keppel Corporation’s key lines for the first quarter recordedhealthy double-digit growth.The Offshore & Marine Division secured a creditable $1.6 billion worth of new orders and achieved improved operating margins in the first quarter of 2010The Group achieved anattributable profit of$322 million for the firstquarter of 2010. This was$37 million or 13% higherthan the correspondingperiod in 2009. EPS rose by13% to 20.2 cents. EVA of$240 million was $29 millionhigher than first quarter2009. Annualised ROE was20.3%.REVENUE AND PROFITSGroup revenue of$2,473 million was$505 million or 17% belowthat of the correspondingquarter in 2009. Revenuefrom Offshore & MarineDivision of $1,493 millionwas $626 million or 30%lower. The decline in revenuewas because of loweroutstanding orderbook. TheDivision completed anddelivered three rigs, threespecialised vessels and fivemajor conversions/upgrades.Revenue from InfrastructureDivision decreased by 2%to $624 million. Lowerrevenue from Engineering,Procurement andConstruction contracts inQatar was partially offset byhigher revenue generatedfrom the co-generationpower plant in Singapore.Revenue from PropertyDivision of $355 million was60% above the previousyear. The increase was mainlydue to progressive revenuerecognition from Reflectionsat Keppel Bay and otherresidential projects inSingapore. Revenue fromsale of residential homes inChina, Vietnam, Indonesiaand India were alsohigher. Rental income frominvestment propertiesimproved because ofacquisition of more officespace in Singapore andan investment building inAustralia.At the pre-tax level, Groupprofit of $465 million was16% above that of thecorresponding quarter in2009. Despite the lowerrevenue, Offshore & MarineDivision reported pre-taxprofit of $270 million, anincrease of 13% over theprevious year. This wasmainly due to higheroperating margins achievedduring the quarter.Profit from InfrastructureDivision decreased by 12%to $37 million as a result oflower revenue. Profit fromProperty Division doubledfrom $74 million to$152 million due toimproved contribution fromtrading projects and shareof associated companiesdeveloping Marina Bay Suitesin Singapore. Profit fromInvestments was lower as theprevious year includedcontribution from SingaporePetroleum Company whichwas disposed in June 2009.Keppelite I April 2010