It’s earnings season again, and given that many companies are reporting their results at the same time, it might be useful to categorise them as reporting positive, negative, and mixed results.
Today we’re looking at two companies that have recently reported mixed results.
First is Keppel Corporation Limited (SGX: BN4), a conglomerate with major business segments including Offshore and Marine, Property, Infrastructure, and Investment.
For the quarter ended 31 December 2018, Keppel reported that revenue was up 8.5% year on year to S$1.7 billion. Yet, profit from operations fell by 96.5% to S$5.1 million, driven by higher operating cost. Despite lower operating profit, net profit attributable to shareholders for the quarter improved from a loss of S$492.0 million last year to a profit of S$145.3 million. The higher profitability in the quarter is mainly due to the absence of a one-off cost incurred in the previous year.
Keppel’s net debt grew from S$5.5 billion on 31 December 2017 to $5.6 billion on 31 December 2018. Lastly, the conglomerate proposed a final dividend of S$0.15 Singapore cents per share. Together with the interim dividend paid, total dividend per share for 2018 would be 30 Singapore cents.
Loh Chin Hua, CEO of Keppel Corporation, commented:
“Against a volatile backdrop, 2018 was a transformational year for Keppel, as we continued to reinvent and position ourselves for long-term growth.
Notwithstanding the challenging macro environment, urbanisation trends continue to present many exciting long-term opportunities for Keppel, whether it is providing energy, property, environmental solutions or connectivity. We will remain focused on building a nimble and agile Keppel, ready to seize opportunities in our existing businesses even as we grow new engines for the future.”
Next, let’s look at M1 Ltd (SGX: B2F).
M1 is the smallest player within Singapore’s telecommunications industry, sitting behind Starhub Ltd and leader Singapore Telecommunications Limited. Its business can be broken down into four segments, namely Mobile Services, Fixed Services, International Call Services, and Handset Sales.
For the quarter ended 31 December 2018, M1 reported that sales revenue was up by 3.7% year on year to S$312.8 million. Yet, service revenue fell 1.8% year on year to S$187.8 million. The growth in sales revenue was driven by stronger performance in the Fixed Services and Handset Sales segments, offset by a weaker performance in International Call Services. Quarterly EBITDA (earnings before interest, tax, depreciation, and amortisation) declined 10.3% year on year to S$68.0 million. Similarly, net profit was lower by 21.4% year on year to S$25.2 million.
On a slight positive note, M1’s balance sheet improved for the year. As of 31 December 2018, net debt stood at S$370.8 million, and gearing stood at 0.7 times. A year ago, net debt and gearing were S$403.5 million and 0.8 times, respectively. Also, M1 recommended a final dividend of 6.0 Singapore cents per share, taking its full-year payout to a total of 11.2 Singapore cents per share.
Click here now for your FREE subscription to Take Stock Singapore, The Motley Fool’s free investing newsletter. Written by David Kuo, Take Stock Singapore tells you exactly what’s happening in today’s markets, and shows how you can GROW your wealth in the years ahead.
The Motley Fool’s purpose is to help the world invest, better. Like us on Facebook to keep up-to-date with our latest news and articles.
The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore contributor Lawrence Nga doesn’t own shares in any companies mentioned.