1 UNAUDITED RESULTS FOR THE FIRST QUARTER ENDED 31 MARCH 2004

Transcription

1 KEPPEL CORPORATION LIMITED First Quarter Financial Statement 1 UNAUDITED RESULTS FOR THE FIRST QUARTER ENDED 31 MARCH 2004 The Directors of Keppel Corporation Limited advise the following unaudited results of the Group for the first quarter ended 31 March (a) GROUP PROFIT AND LOSS ACCOUNT for the first quarter ended 31 March Q Q /(-) % Turnover 896,213 1,744, Materials and subcontract costs (533,959) (1,335,903) Staff costs (189,438) (170,576) Depreciation and amortisation (38,487) (54,853) Other operating expenses (25,423) (62,301) Operating profit 108, , Investment income 24 1, Interest income 4,983 7, Interest expenses (11,326) (13,903) Share of results of associated companies 45,085 16, Profit before tax & exceptional items 147, , Exceptional items n.m. Profit before taxation 147, , Taxation (767) (12,555) Profit after taxation 146, , Minority interests (15,396) (24,889) Profit attributable to shareholders 131,509 94, Comprising: Profit before exceptional items 131,509 94, Exceptional items n.m. 131,509 94, Earnings per ordinary share Before exceptional items - basic 17.0 cts 12.2 cts diluted 16.8 cts 12.1 cts After exceptional items - basic 17.0 cts 12.3 cts diluted 16.8 cts 12.3 cts n.m. - not meaningful Keppel Corporation Limited, Page 1 of 13

2 Notes: (i) Operating profit is arrived at after charging/(crediting) the following: 1Q Q /(-) % Profit on sale of fixed assets (11,099) (633) Profit on sale of investments (1,120) - n.m. Provision for stocks - 14,708 n.m. Provision for investments - 2,431 n.m. Provision for doubtful debts 3,317 - n.m. Bad debts recovered - (1,130) n.m. Foreign exchange loss/(gain) 3,610 (1,701) n.m. (ii) Taxation expense for the period included write-back of deferred tax of $15 million (attributable $13.6 million) arising from the reduction in Singapore corporate tax rate from 22% to 20%. (iii) There was no exceptional item. (iv) There was no extraordinary item. Keppel Corporation Limited, Page 2 of 13

3 1(b)(i) BALANCE SHEETS as at 31 March G r o u p C o m p a n y Share capital 387, , , ,533 Reserves 2,636,380 2,501,984 2,569,353 2,568,766 Share capital & reserves 3,024,242 2,889,517 2,957,215 2,956,299 Minority interests 1,084,611 1,069, Capital employed 4,108,853 3,959,035 2,957,215 2,956,299 Represented by: Fixed assets 1,479,953 1,705,416 8,284 8,657 Investment properties 1,886,954 1,886, Development properties 211, , Subsidiaries - - 3,593,962 3,600,057 Associated companies 1,368,508 1,358,249 3,074 3,074 Investments 84, , Loans receivable 8,435 9, , ,156 Intangibles 143, , ,183,220 5,421,201 4,056,821 4,062,944 Current assets Stocks & work-in-progress 2,651,106 2,565, Amounts due from: - subsidiaries , ,485 - associated companies 249, , ,560 Debtors 896, ,639 5,410 16,356 Short term investments 224, , Bank balances, deposits & cash 698, ,891 5, ,720,907 4,661, , ,953 Current liabilities Creditors 1,486,354 1,621,766 24,233 23,319 Provisions 13,782 14,328 5,000 5,000 Amounts due to: - subsidiaries , ,890 - associated companies 67, , Term loans 1,476,662 1,186, , ,534 Taxation 100,776 92,274 3,164 3,155 Bank overdrafts 22,878 9, ,168,372 3,049,241 1,124,812 1,282,898 Net current assets/(liabilities) 1,552,535 1,612,291 (629,467) (635,945) Non-current liabilities Term loans 2,157,984 2,592, , ,000 Deferred taxation 166, ,920 20,139 20,700 Proceeds from sale of future residential receivables 302, , ,626,902 3,074, , ,700 Net assets 4,108,853 3,959,035 2,957,215 2,956,299 Keppel Corporation Limited, Page 3 of 13

4 1(b)(ii) GROUP'S BORROWINGS AND DEBT SECURITIES Amount repayable in one year or less, or on demand As at 31 Mar 2004 As at 31 Dec 2003 Secured Unsecured Secured Unsecured 482,443 1,017,097 26,114 1,169,684 Amount repayable after one year As at 31 Mar 2004 As at 31 Dec 2003 Secured Unsecured Secured Unsecured 262,621 1,895, ,855 1,891,682 Details of any collateral Certain subsidiaries of the Company have pledged their assets in order to obtain loans from financial institutions. The net book value of properties and other assets pledged/mortgaged to financial institutions amounted to $1,095,508,000 (31 Dec 2003: $1,110,726,000). Keppel Corporation Limited, Page 4 of 13

5 1(c) CONSOLIDATED CASH FLOW STATEMENT for the first quarter ended 31 March 2004 Note 1Q Q 2003 OPERATING ACTIVITIES Operating profit 108, ,468 Adjustments: Depreciation and amortisation 38,487 54,853 Profit on sale of fixed assets (11,099) - Operational cash flow before changes in working capital 136, ,321 Working capital changes: Stocks & work-in-progress 91,356 15,281 Debtors (5,585) (19,651) Creditors (136,354) (103,907) Investments in bonds and shares 8,771 20,580 Advances to associated companies (59,603) 3,717 Translation of foreign subsidiaries 3,810 (4,373) 38,689 86,968 Interest received 4,983 7,101 Interest paid (11,326) (13,903) Income taxes paid (1,854) (56,254) Net cash (used in)/from operating activities 30,492 23,912 INVESTING ACTIVITIES Acquisition of subsidiaries A - (65,372) Disposal of subsidiaries B - 14,993 Acquisition and further investment in associated companies (5,057) (51,581) Proceeds from disposal of associated companies - 29,574 Repayment of loans to associated companies 27,169 - Acquisition of fixed assets and investment properties (23,816) (65,308) Expenditure on development properties (204) (452) Proceeds from disposal of fixed assets 38,260 - Loans to an investee company - (1,334) Dividends received from investments 9,348 2,607 Net cash from/(used in) investing activities 45,700 (136,873) FINANCING ACTIVITIES Proceeds from share issues 1,796 4,286 Proceeds from minority shareholders - of subsidiaries 3,734 Repayment / proceeds of term loans (143,928) 171,434 Net cash (used in)/from financing activities (138,398) 175,720 Net (decrease)/increase in cash and cash equivalents (62,206) 62,759 Cash and cash equivalents as at beginning of period 738, ,915 Cash and cash equivalents as at end of period C 675, ,674 Keppel Corporation Limited, Page 5 of 13

6 Notes to Consolidated Cash Flow Statement 1Q Q 2003 A. Acquisition of Subsidiaries The fair values of net assets and liabilities of subsidiaries acquired were as follows: Fixed assets and investment properties - 255,638 Stocks - 47,559 Debtors Bank balances and cash - 50 Creditors - (29,981) Minority interests - (50,576) - 222,836 Amount previously accounted for as associated companies - (157,414) Purchase consideration - 65,422 Less: Bank balances and cash acquired - (50) Cash flow on acquisition net of cash acquired - 65,372 B. Disposal of Subsidiaries The fair values of net assets and liabilities of subsidiaries disposed were as follows: Fixed assets and investment properties - (7,480) Investments - (242) Debtors - (6,046) Bank balances and cash - (207) Creditors - 7,675 - (6,300) Net profit on disposal - (8,900) Sale proceeds - (15,200) Add: Bank balances and cash disposed Cash flow on disposal net of cash disposed - (14,993) C. Cash and Cash Equivalents Cash and cash equivalents consist of cash on hand and balances with banks. Cash and cash equivalents in the consolidated cash flow statement comprise the following balance sheet amounts: Bank balances, deposits and cash 698, ,168 Bank overdrafts (22,878) (1,494) 675, ,674 Keppel Corporation Limited, Page 6 of 13

7 1(d)(i) STATEMENTS OF CHANGES IN EQUITY for the first quarter ended 31 March 2004 Group Share Capital Share Premium Account Capital Reserves Revenue Reserves Foreign Exchange Translation Account Total 2004 As at 1 January 387, , ,155 1,447,726 (10,664) 2,889,517 Currency translation gain ,420 1,420 Gain not recognised in profit & loss account ,420 1,420 Net profit for the quarter , ,509 Transfer of statutory, capital and other reserves to revenue reserves on disposal of subsidiaries - - (191) Shares issued 329 1, ,796 As at 31 March 387, , ,964 1,579,426 (9,244) 3,024, As at 1 January 384, , ,725 1,055,295 (51,240) 2,717,587 Currency translation loss (2,990) (2,990) Losses not recognised in profit & loss account (2,990) (2,990) Net profit for the quarter ,959-94,959 Transfer of statutory, capital and other reserves to revenue reserves (629) (109) - Shares issued 784 3, ,286 As at 31 March 385, , ,463 1,149,625 (54,339) 2,813,842 Company 2004 As at 1 January 387, , ,881 1,553,118-2,956,299 Net profit for the quarter (880) - (880) Shares issued 329 1, ,796 As at 31 March 387, , ,881 1,552,238-2,957, As at 1 January 384, , ,782 1,165,008-2,754,597 Net profit for the quarter , ,170 Shares issued 784 3, ,286 As at 31 March 385, , ,782 1,442,178-3,036,053 Keppel Corporation Limited, Page 7 of 13

8 1(d)(ii) SHARE CAPITAL Since 31 December 2003, the Company issued 659,000 ordinary shares of $0.50 each upon the exercise of options granted under the KCL Share Options Scheme to employees. The share capital of the Company as at the end of the period was 775,724,591 ordinary shares of $0.50 each. As at 31 March 2004, there were unexercised options for 14,716,166 of unissued ordinary shares of $0.50 each (31 March 2003: 14,935,666 ordinary shares of $0.50 each) under the KCL Share Options Scheme. 2. AUDIT The figures have not been audited or reviewed by the Company s auditors. 3. AUDITORS' REPORT Not applicable 4. ACCOUNTING POLICIES The Group has applied the same accounting policies and methods of computation in the financial statements for the current financial period compared with those of the audited financial statements as at 31 December CHANGES IN THE ACCOUNTING POLICIES There are no changes in accounting policies. 6. EARNINGS PER ORDINARY SHARE G R O U P 1Q Q /(-)% Earnings per ordinary share of the Group for the first quarter based on net profit attributable to shareholders:- (i) Based on the weighted average number of shares 17.0 cts 12.3 cts Weighted average number of shares ( 000) 775, , (ii) On a fully diluted basis 16.8 cts 12.3 cts Adjusted weighted average number of shares ( 000) 781, , NET ASSET VALUE G R O U P C O M PA N Y /(-)% /(-)% Net asset value per ordinary share based on issued share capital at the end of the financial period/year $3.90 $ $3.81 $ Keppel Corporation Limited, Page 8 of 13

9 8. REVIEW OF GROUP PERFORMANCE The Group reported strong earnings before exceptional items of $132 million, an improvement of 40% over $94 million in the first quarter of Earnings per share improved to 17.0 cents from 12.2 cents. The improved earnings were underpinned by the strong contributions from Offshore & Marine. Earnings were also enhanced by the reversal of deferred tax of $14 million following the reduction in corporate tax rate. Property registered higher earnings but Infrastructure s earnings were lower as the previous quarter s results included a reversal of tax provision. Contributions from Investments were marginally higher. Group turnover of $896 million and operating profit of $109 million were 49% and 10% lower than those in the first quarter of 2003 respectively, following the deconsolidation of Singapore Petroleum Company (SPC) from November 2003 after the partial divestment of SPC, which reduced the Group s interest in SPC from 77% to 49%. However, share of results of associated companies at $45 million was significantly higher as it included the results of SPC as an associated company. Taxation charge fell substantially due to the reversal of deferred tax provision and minority interests were lower due to the deconsolidation of SPC. In the opinion of the Directors, no factors have arisen between the end of 1Q 2004 and the date of this report, which would materially affect the results of the Group and the Company for the quarter just ended. 9. VARIANCE FROM PROSPECT STATEMENT No variance from previous statement. 10. PROSPECTS With strong fundamentals in the industry, Offshore & Marine clinched about $900 million of new contracts in the first quarter following the record level of contracts secured in 2003, which will keep the Division busy through In Property, improved earnings will come from the launches of residential projects in China, Thailand and Vietnam. Locally, the Division is also planning for the launches and re-launches of projects in an improving economic environment. Infrastructure s performance will continue to be underpinned by the earnings from the power barges operation. The investment in Jawa Power is expected to contribute to earnings from next year. The Group expects to report improved earnings this year. It is on course to meet its earnings target of compounded annual growth rate of 8 12% through 2005 with each of the core businesses achieving growth rates higher than this range. On the divestment of non-core and low-yielding assets, the Group has recently announced the sale of the entire fleet of ten feeder vessels for over $150 million at a gain of $35.7 million. This is scheduled for full completion in the second quarter. The Group will continue to focus on realising maximum values from its divestment programme. Keppel Corporation Limited, Page 9 of 13

10 11. DIVIDEND (a) Current Financial Period Reported On Any dividend recommended for the current financial period reported on? No Name of Dividend Dividend Type Dividend Rate Par value of Shares Tax Rate (b) Corresponding Period of the Immediately Preceding Financial Year Any dividend declared for the corresponding period of the immediately preceding financial year? No Name of Dividend Dividend Type Dividend Rate Par value of Shares Tax Rate (c) DATE PAYABLE Not applicable (d) BOOKS CLOSURE DATE Not applicable 12. If no dividend has been declared/recommended, a statement to that effect. No dividend has been declared for the quarter ended 31 March 2004 (31 March 2003: NIL). For the year ended 31 December 2003, Directors had recommended a final dividend of 22% or 11 cents per share less tax for approval by shareholders at the Annual General Meeting to be held on 28 April If approved, the final dividend will be payable on 18 May With the successful divestment of certain non-core assets last year, Directors had also proposed a capital distribution of 18 cents per share without deduction for tax out of the Company s capital reserve account and share premium account. The capital distribution is subject to the approval of shareholders at the Extraordinary General Meeting to be held on 28 April 2004 and the Court s sanction. If approved, the capital distribution is expected to be payable on 25 June Keppel Corporation Limited, Page 10 of 13

11 13. SEGMENT ANALYSIS First Quarter ended 31 March 2004 BUSINESS SEGMENT Offshore & Marine Property Infrastructure Investments Elimination Total Revenue External sales 545, , ,635 31, ,213 Inter-segment sales 1,239 1,351 6,059 11,063 (19,712) - Total 546, , ,694 42,702 (19,712) 896,213 Results Operating profit 68,068 34,043 10,919 (4,124) - 108,906 Net investment income & interest income (1,788) (4,065) (198) (268) - (6,319) Share of results of associated companies 2,881 8,464 4,962 28,778-45,085 Profit before tax 69,161 38,442 15,683 24, ,672 Other Information Segment assets 1,872,327 5,957, ,701 3,283,702 (3,357,916) 8,535,619 Investment in associated companies 69, ,108 65, ,396-1,368,508 Total 1,941,806 6,613, ,226 3,861,098 (3,357,916) 9,904,127 Segment liabilities 1,297,128 4,888, ,355 2,571,701 (3,357,916) 5,795,274 Net assets 644,678 1,725, ,871 1,289,397-4,108,853 Capital expenditure 14,887 6, ,076-23,816 Depreciation & amortisation 14,020 3,544 15,394 5,529-38,487 GEOGRAPHICAL SEGMENT Singapore Far East & Other ASEAN Countries Other Countries Elimination Total External sales 405,733 90, , ,213 Segment assets 8,790,287 1,964, ,578 (1,382,970) 9,904,127 Capital expenditure 15,237-8,579-23,816 Keppel Corporation Limited, Page 11 of 13

12 First Quarter ended 31 March 2003 BUSINESS SEGMENT Offshore & Marine Property Infrastructure Investments Elimination Total Revenue External sales 393, , , ,250-1,744,101 Inter-segment sales 1,617 2,543 7,416 14,981 (26,557) - Total 394, , ,861 1,013,231 (26,557) 1,744,101 Results Operating profit 48,841 39,815 13,229 18, ,468 Net investment income & interest income (2,365) (2,564) (1,530) 1,405 - (5,054) Share of results of associated companies 1, ,956 11,265-16,162 Profit before tax & exceptional items 47,525 38,143 14,655 31, ,576 Exceptional items - - (9,100) 9, Profit before tax 47,525 38,143 5,555 41, ,403 Other Information Segment assets 2,087,041 6,295, ,693 4,328,197 (2,880,612) 10,775,896 Investment in associated companies 57, ,545 68, , ,379 Total 2,144,363 6,674,122 1,014,016 4,728,386 (2,880,612) 11,680,275 Segment liabilities 1,532,381 4,657, ,585 3,807,869 (2,880,612) 7,638,898 Net assets 611,982 2,016, , ,517-4,041,377 Capital expenditure 41,175 5,287 11,933 6,913-65,308 Depreciation & amortisation 16,549 4,029 19,443 14,832-54,853 GEOGRAPHICAL SEGMENT Singapore Far East & Other ASEAN Countries Other Countries Elimination Total External sales 1,398, , ,642-1,744,101 Segment assets 8,573,134 2,166,219 1,396,563 (455,641) 11,680,275 Capital expenditure 34,542-30,766-65,308 Notes : (a) Business Segment The Group is focused on three key business divisions: Offshore & Marine, Property and Infrastructure. The Investments division consists of the Group's investments in SPC, Logistics, Shipping and MobileOne Ltd, which the Company will continue to build value for timely divestment. These four divisions are the basis on which the Group reports its primary segment information. Pricing of inter-segment goods and services is at fair market value. Segment assets and liabilities are those used in the operation of each division. (b) Geographical Segment The Group has operations in 27 countries. Secondary segment information is provided by geographical segment in accordance to the above table. Keppel Corporation Limited, Page 12 of 13

13 14. REVIEW OF SEGMENT PERFORMANCE Not applicable 15. INTERESTED PERSON TRANSACTIONS Name of Interested Person Transaction for the Sale of Goods and Services Aggregate value of all interested person transactions (excluding transactions less than $100,000 and transactions conducted under shareholders' mandate pursuant to Rule 920 of SGX Listing Manual) 3 months months Aggregate value of all interested person transactions conducted under shareholders' mandate pursuant to Rule 920 of the SGX Listing Manual (excluding transactions less than $100,000) 3 months months PSA Corporation Group - 21,900 25,850 - SembCorp Marine Group CapitaLand Group - 6, Singapore Airlines Group - 7,899 1,720 - Singapore Telecommunications Group (Singtel) - - 4,900 - National University Hospital - 3, Transaction for the Purchase of Goods and Services Mapletree Investments Pte Ltd Total Interested Person Transactions - 40,069 33,412 - BY ORDER OF THE BOARD CAROLINE CHANG Company Secretary 27 April 2004 Keppel Corporation Limited, Page 13 of 13