February 2012 - Keppel Corporation

Sustaining Growth 5Keppel GROUPRestated(S$’m) 2011 2010 % ChangeRevenue 10,082 9,140 10Operating Profit 1,897 1,556 22Profit before tax 2,177 1,889 15Net Profit 1,491 1,307 14EPS (cents) 83.8 74.3 13FPSO OSX-1 for Brazil’s OSX is one of seven FPSO/FSO conversions delivered by Offshore &Marine Division in 2011Profit from InfrastructureDivision increased by 29%to $120 million as a resultof better performance fromKeppel Energy but this waspartly offset by losses fromKIE.Property Division recordedprofit of $582 million,an increase of 19% overthe preceding year. Thiswas mainly attributable tohigher contribution fromseveral residential projectsin Singapore, China andVietnam. Profit fromInvestments Division waslower due to higher costsin 2011.The Group’s ExceptionalGains of $349 millionconsisted principally of netappreciation in the valueof investment properties.This was partially offset byprovisions for cost overrunsand completion delays for theengineering, procurementand construction (EPC)contracts in Qatar, andthe impairment of nonperformingassets.After taking into accountincome tax expenses andnon-controlling interests,n e t p r o f i t i n c l u d i n gexceptional itemsattributable to shareholderswas $1,841 million.Attributable profit, excludingexceptional items, was$1,491 million.Offshore & Marine Divisionremained the largestcontributor to net profitwith 71%, followed byProperty Division with 20%,Infrastructure Division with6% and Investments Divisionwith 3%.PROSPECTSOffshore & Marine Divisionsecured a record $10 billionworth of new orders forthe year. The net orderbookstood at $9.4 billion withdeliveries extending into2015.The Division continues tosee good prospects forthe offshore and marineindustry with exploration andproduction (E&P) expenditureby oil and gas companiesp ro j e c t e d t o i n c re a s ein the next few years. Itwill continue to focus ondeveloping innovative highquality products that arecost-effective, and deliveringthem safely, on time andwithin budget.In Infrastructure Division,the expansion of the KeppelMerlimau Cogen power plantfrom the current 500 MW to1,300 MW is on schedule forcompletion by 2013. KIE isalso progressing well on theexecution of its EPC contractsin Qatar and the UnitedKingdom. The experiencegained from its Qatar andUnited Kingdom projectswill enable it to better assessfuture opportunities forenvironmental engineeringprojects. In addition, theDivision will further exploreopportunities to expand itslogistics business and focusContinues on page 6...Keppelite I February 2012