Singapore's Keppel says net profit down 41.5 pct in Q1

The net profit of Keppel Corporation, the world's largest oil rig builder, in the first quarter was at 210.6 million Singapore dollars (156 million U.S. dollars), 41.5 percent down from a year ago, the company said in a statement Monday.

Keppel said the decline was caused by lower profit contributions from its offshore and marine divisions. However, the company added that the higher contribution from property at 47 percent helped to partially offset lower profits from offshore and marine.

Total revenue also dropped 38.1 percent to 1.74 billion Singapore dollars (1.29 billion U.S. dollars), with contributions from the property division partially offset lower sales in the offshore and marine, infrastructure and investment divisions.

Economic value add for the period was 2 million Singapore dollars (1.48 million U.S. dollars). On an annualized basis, the company's return on equity was 7.1 percent.

Loh Chin Hua, chief executive officer of Keppel Corp, said although the macro environment remains challenging, with slowing growth in emerging economies, there remains opportunities.

"Despite the challenges in the oil and gas sector, there continues to be engines of growth, especially in Asia, arising from continuing urbanization," said Loh. Enditem