KEPPEL CORPORATION LIMITED

Transcription

1 KEPPEL CORPORATION LIMITED Co. Reg. No N (Incorporated in the Republic of Singapore) FIRST QUARTER 2006 FINANCIAL STATEMENT TABLE OF CONTENTS Item No Description Page EXECUTIVE CHAIRMAN S REMARKS I - II FIRST QUARTER FINANCIAL STATEMENT GROUP PROFIT AND LOSS ACCOUNT 1 2 BALANCE SHEETS 3 3 CONSOLIDATED CASHFLOW STATEMENT 5 4 STATEMENTS OF CHANGES IN EQUITY 7 5 AUDIT 9 6 AUDITORS REPORT 9 7 ACCOUNTING POLICIES 9 8 CHANGES IN THE ACCOUNTING POLICIES 9 9 REVIEW OF GROUP PERFORMANCE VARIANCE FROM PROSPECT STATEMENT PROSPECTS DIVIDEND / CAPITAL DISTRIBUTION SEGMENT ANALYSIS REVIEW OF SEGMENT PERFORMANCE INTERESTED PERSON TRANSACTIONS 15

2 KEPPEL CORPORATION EXECUTIVE CHAIRMAN S OPENING ADDRESS FOR 1Q 2006 RESULTS WEBCAST PRESENTATION TO PRESS AND ANALYSTS ON THURSDAY 27 APRIL Q 06 Financial Performance We achieved an 18% PATMI growth in 1Q 2006, with Offshore & Marine and Investments contributing to this increase. Over the course of this year, I envisage that earnings growth would become moderately more broad-based with Property and Infrastructure also demonstrating improved year-on-year results. A Substantive Start to 2006 During the quarter, our O&M business showed tremendous robustness. We secured record contracts worth $3.2b. With these jobs, we will now be filling our orderbook for 2009 and beyond. Our global network and ceaseless efforts to increase the utilization of our existing yard capacity have enabled us to capitalize on the strong momentum in the business. Keppel Philippines Marine has become an 80% subsidiary. We have broadened our footprint to Bintan where our 60% joint venture will further strengthen our capability to carry out more fabrication work to support the increasing number of rig projects undertaken by our Singapore yards. All in all we expect to deliver a record number of 15 rigs in We are also in discussions with Qatar Gas Transport Company to build and manage a shipyard in Qatar. This will provide us a stronger presence in the Middle Eastern market and will further expand Keppel Offshore & Marine s growth platforms as part of its near market near customer strategy. In Property, we have also put in place several growth platforms that will enable us to work towards sustainable earnings growth. In the office sector, Keppel Land has succeeded in securing more quality tenants for One Raffles Quay. We are targeting to achieve at least 90% pre-commitment by 2H Preparatory efforts are also in progress to roll out two premier residential projects in Singapore later in the year Keppel Bay Phase 2 designed by world-renowned architect, Daniel Libeskind, and BFC Residential. In townships, our project in Chengdu, China, met with strong response, with almost all 324 units launched snapped up in two weeks. Later this year, Keppel Land will be launching another township, this time in Cakung in Jakarta, Indonesia, as well as venturing into a new market segment of villa developments in Shanghai and Tianjin. Meanwhile, K-REIT Asia, which starts trading on the SGX tomorrow, provides another platform for Keppel Land to grow its fee-based income. I am pleased to say that Alpha Core Plus Real Estate Fund had a successful quarter, which more than doubled Keppel Land s assets under management to $5bn, when fully invested. Chairman s Statement, I

3 Our Infrastructure Division is focused on successful execution of our ongoing domestic projects. Using these as a strong platform we are actively pursuing opportunities in Asia and the Middle East. For our NEWater project, we expect a modest yield enhancement following the Public Utilities Board s exercise of its option to convert the industrial water portion into NEWater. The plant, which will produce 148,000m 3 /day of NEWater instead of 116,000 m 3 /day, will now complete in 1Q 2007 instead of end I shall now pass over to Soon Hoe, the Group Finance Director, for a review of the group s financial and business performance in 1Q. Chairman s Statement, II

4 KEPPEL CORPORATION LIMITED First Quarter Financial Statement UNAUDITED RESULTS FOR THE FIRST QUARTER ENDED 31 MARCH 2006 The Directors of Keppel Corporation Limited advise the following unaudited results of the Group for the first quarter ended 31 March GROUP PROFIT AND LOSS ACCOUNT for the first quarter ended 31 March Q Q /(-) % Revenue 1,543,643 1,132, Materials and subcontract costs (1,102,599) (772,780) Staff costs (205,686) (167,103) Depreciation and amortisation (31,028) (31,229) -0.6 Other operating expenses (28,806) (33,496) Operating profit 175, , Investment income Interest income 19,162 10, Interest expenses (3,127) (2,598) Share of results of associated companies 63,007 68, Profit before tax and exceptional items 254, , Exceptional items - 1,375 NM Profit before taxation 254, , Taxation (48,400) (32,178) Profit for the period 206, , Attributable to: Shareholders of the Company Profit before exceptional items 169, , Exceptional items - 1,375 NM 169, , Minority interests 36,356 28, Earnings per ordinary share 206, , Before exceptional items - basic 21.6 cts 18.4 cts diluted 21.0 cts 18.2 cts After exceptional items - basic 21.6 cts 18.6 cts diluted 21.0 cts 18.4 cts Return on equity 17.6% 15.6% Economic value added 75,000 42, NM - Not Meaningful Keppel Corporation Limited, Page 1 of 15

5 NOTES TO GROUP PROFIT AND LOSS ACCOUNT 1a. Pre-tax profit of the Group is arrived at after charging/(crediting) the following: 1Q Q /(-) % Share-based payment expenses 4,210 2, Profit on sale of fixed assets (7,299) (586) Provision/(write-back) - Stocks & work-in-progress (9,389) (4,729) Doubtful debts 732 (8,939) NM Bad debts recovered (23) (972) Fair value loss/(gain) - Investments held for trading (6,340) (2,267) Forward foreign exchange contracts (1,680) 1,997 NM - Interest rate caps and swaps (8,584) (8,408) +2.1 Foreign exchange loss 1,946 4, b. There was no material adjustment for under or over provision of tax in respect of prior years. 1c. Exceptional items for the period comprise the following: 1Q Q 2005 Gain on disposal of associated companies - 10,975 Impairment of assets - (9,600) - 1,375 1d. Earnings per ordinary share Earnings per ordinary share of the Group based on net profit attributable to shareholders: 1Q Q /(-)% (i) Based on weighted average number of shares 21.6 cts 18.6 cts Weighted average no. of shares ( 000) 785, , (ii) On a fully diluted basis 21.0 cts 18.4 cts Adjusted weighted average no. of shares ( 000) 790, , e. There was no extraordinary item during the period. Keppel Corporation Limited, Page 2 of 15

6 2. BALANCE SHEETS as at 31 March G r o u p C o m p a n y Share capital * 1,144, ,903 1,144, ,903 Reserves 2,752,866 3,254,173 1,762,850 2,490,141 Share capital & reserves 3,897,778 3,646,076 2,907,762 2,882,044 Minority interests 1,376,027 1,288, Capital employed 5,273,805 4,934,642 2,907,762 2,882,044 Represented by: Fixed assets 1,737,476 1,653,195 5,583 5,620 Investment properties 2,020,004 2,025, Development properties 219, , Subsidiaries - - 3,183,440 3,149,511 Associated companies 2,225,982 2,174,200 3,074 3,074 Investments 87,772 84, Long term receivables 144, , Intangibles 141, , ,576,898 6,463,276 3,192,927 3,158,804 Current assets Stocks & work-in-progress in excess of related billings 2,963,797 2,762, Amounts due from: - subsidiaries , ,926 - associated companies 369, , Debtors 1,511,035 1,267,211 40,683 2,519 Short term investments 418, , Bank balances, deposits & cash 1,410,395 1,410,851 11, ,673,210 6,126, , ,114 Current liabilities Creditors 2,107,964 1,859,083 50,279 80,304 Billings on work-in-progress in excess of related costs 1,665,016 1,487, Provisions 18,565 17, Amounts due to: - subsidiaries ,011 56,420 - associated companies 221, , Term loans 1,307,617 1,321, , ,848 Taxation 194, ,738 6,529 5,155 Bank overdrafts 12,603 16, ,527,800 5,088, , ,735 Net current assets 1,145,410 1,037,484 29,974 43,379 Non-current liabilities Term loans 2,273,117 2,392, , ,000 Deferred taxation 175, ,076 15,139 20,139 2,448,503 2,566, , ,139 Net assets 5,273,805 4,934,642 2,907,762 2,882,044 Group net borrowings 2,182,942 2,319,990 n.a. n.a. Group net gearing (times) 0.41x 0.47x n.a. n.a. * Pursuant to The Companies (Amendment) Act 2005 effective 30 January 2006, the concept of authorised share capital and par value has been abolished. Amount standing to the credit of share premium account and capital redemption reserve has been transferred to the share capital account as at that date. Keppel Corporation Limited, Page 3 of 15

7 NOTES TO BALANCE SHEETS 2a. Group s borrowings and debt securities (i) Amount repayable in one year or less, or on demand As at 31 Mar 2006 As at 31 Dec 2005 Secured Unsecured Secured Unsecured 41,503 1,278,717 53,712 1,285,087 (ii) Amount repayable after one year As at 31 Mar 2006 As at 31 Dec 2005 Secured Unsecured Secured Unsecured 759,577 1,513, ,821 1,699,221 (iii) Details of any collateral Certain subsidiaries of the Company 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 $1,117,368,000 (31 December 2005: $1,070,904,000). 2b. Net asset value G R O U P C O M PA N Y /(-)% /(-)% Net asset value per ordinary share * $4.96 $ $3.70 $ Net tangible asset per ordinary share * $4.78 $ $3.70 $ * Based on share capital of 786,220,924 ordinary shares as at the end of the period (31 December 2005: 783,805,424 ordinary shares). 2c. Balance sheet analysis Group shareholders funds increased from $3.65 billion at 31 December 2005 to $3.90 billion at 31 March The increase was mainly attributable to retained profits for the period and fair value adjustment for available-for-sale investments and forward foreign exchange contracts. Group total assets of $13.25 billion at 31 March 2006 were $661 million or 5.2% higher than the previous year-end. Fixed assets were higher because of expenditure on Keppel Merlimau s cogen plant. The increase in associated companies was attributable to equity accounting for share of profits and further investment in SPC, k1 Ventures and One Raffles Quay. Stocks & work-inprogress and debtors were higher due to the increased activities in Offshore & Marine division. Group total liabilities of $7.98 billion at 31 March 2006 were $322 million or 4.2% higher than the previous year-end. Creditors were higher because of the higher level of activities in Offshore & Marine division. Billings on work-in-progress in excess of related costs increased due to progress billings received from Offshore & Marine contracts. Group net borrowings at $2.18 billion were a reduction of $137 million from $2.32 million in the previous year-end because of strong operational cash flow. Keppel Corporation Limited, Page 4 of 15

8 3. CONSOLIDATED CASHFLOW STATEMENT for the first quarter ended 31 March Q Q 2005 Note OPERATING ACTIVITIES Operating profit 175, ,182 Adjustments: Depreciation and amortisation 31,028 31,229 Share-based payment expenses 4,210 2,084 Profit on sale of fixed assets (7,299) (586) Operational cash flow before changes in working capital 203, ,909 Working capital changes: Stocks & work-in-progress (46,218) 215,310 Debtors (97,444) (161,156) Creditors 247,170 4,504 Investments in bonds and shares 21,294 (63,922) Advances to associated companies (39,954) 87,499 Translation of foreign subsidiaries 1,832 (1,432) 290, ,712 Interest received 19,162 10,456 Interest paid (3,127) (2,598) Income taxes paid (26,203) (18,407) Net cash from operating activities 279, ,163 INVESTING ACTIVITIES Acquisition of subsidiaries 3a 10,840 - Acquisition of additional shares in subsidiaries (10,054) - Acquisition and further investment in associated companies (59,702) (5,145) Proceeds from disposal of associated companies - 3,790 Acquisition of fixed assets and investment properties (128,632) (64,356) Proceeds from disposal of fixed assets 27,638 4,262 Dividends received from investments 8,633 1,736 Net cash used in investing activities (151,277) (59,713) FINANCING ACTIVITIES Proceeds from share issues 10,016 8,417 Proceeds from minority shareholders of subsidiaries 3,557 10,481 Proceeds from term loans 101, ,229 Repayment of term terms (234,478) (703,624) Dividend paid to minority shareholders of subsidiaries (5,223) (806) Net cash used in financing activities (124,940) (34,303) Net increase in cash and cash equivalents 3, ,147 Cash and cash equivalents as at beginning of period 1,394, ,824 Cash and cash equivalents as at end of period 3b 1,397,792 1,108,971 Free cashflow 128, ,450 Keppel Corporation Limited, Page 5 of 15

9 NOTES TO CONSOLIDATED CASHFLOW STATEMENT 3a. Acquisition of subsidiaries The fair values of net assets and liabilities of subsidiaries acquired were as follows: 1Q Q 2005 Investments 16,024 - Debtors 15 - Bank balances and cash 12,903 - Creditors (8) - Minority interests (12,829) - 16,105 - Amount previously accounted for as associated companies (14,042) - Purchase consideration 2,063 - Less: Bank balances and cash acquired (12,903) - Cash flow on acquisition net of cash acquired (10,840) - 3b. Cash and cash equivalents Cash and cash equivalents consist of cash on hand and balances with banks. Cash and cash equivalents in the consolidated cashflow statement comprise the following balance sheet amounts: 1Q Q 2005 Bank balances, deposits and cash 1,410,395 1,120,022 Bank overdrafts (12,603) (11,051) 1,397,792 1,108,971 3c. Cashflow analysis Net cash from operating activities of $280 million was higher than that of the corresponding quarter in the previous year. The strong operating cash flow was due to the increased operating profit in the current quarter. Net cash used in investing activities for the quarter was $151 million. The Group spent $188 million on acquisitions and operational capex. This comprised principally acquisition of additional stake in Dragon Land, SPC and k1 Ventures, further investment in One Raffles Quay, capital expenditure on Keppel Merlimau s co-gen plant and other operational capex. Divestment and dividend received amounted $36 million. Free cashflow of $129 million was $43 million lower than the corresponding quarter in the previous year, principally because of higher investing activities in the current quarter. Keppel Corporation Limited, Page 6 of 15

10 4. STATEMENTS OF CHANGES IN EQUITY for the first quarter ended 31 March a. Statement of changes in equity of the Group Attributable to equity holders of the Company Share Capital Share Premium Account Capital Reserves Revenue Reserves Foreign Exchange Translation Account Share Capital & Reserves Minority Interests Capital Employed 2006 As at 1 January 391, , ,761 2,192,117 (3,934) 3,646,076 1,288,566 4,934,642 Fair value changes on available-for-sale assets , ,034 (3,606) 21,428 Fair value changes on cashflow hedges , , ,806 Currency translation loss (30,032) (30,032) (12,097) (42,129) Gain/(loss) not recognised in profit & loss account ,796 - (30,032) 67,764 (15,659) 52,105 Net profit for the quarter , ,825 36, ,181 Share-based payment - - 4, , ,961 Transfer of statutory, capital and other reserves to revenue reserves (51) Share of capital reserves of an associated company - - (849) - - (849) - (849) Dividend paid to minority shareholders (5,223) (5,223) Cash subscribed by minority shareholders ,557 3,557 Acquisition of subsidiaries ,829 12,829 Acquisition of additional interest in subsidiaries (10,054) (10,054) Set off against advance from minority shareholders ,498 65,498 Other adjustments Shares issued 7,252 2, ,016-10,016 Reclassification arising from abolition of par value (Note 4c) 745,757 (722,993) (22,764) As at 31 March 1,144, ,799 2,361,891 (33,824) 3,897,778 1,376,027 5,273,805 Keppel Corporation Limited, Page 7 of 15

11 4a. Statement of changes in equity of the Group (cont d) Attributable to equity holders of the Company Share Capital Share Premium Account Capital Reserves Revenue Reserves Foreign Exchange Translation Account Share Capital & Reserves Minority Interests Capital Employed 2005 As at 1 January As restated 389, , ,750 1,769,694 (38,078) 3,219,345 1,158,607 4,377,952 Fair value changes on available-for-sale assets , , ,619 Fair value changes on cashflow hedges - - 5, ,751 (161) 5,590 Currency translation loss (7,217) (7,217) (2,374) (9,591) Gain/(loss) not recognised in profit & loss account ,284 - (7,217) 10,067 (2,449) 7,618 Net profit for the quarter , ,946 28, ,425 Share-based payment - - 2, , ,748 Transfer of statutory, capital and other reserves to revenue reserves - - (1,188) 1, Revaluation deficit realised and transferred to profit & loss account on disposal of property - - 9, ,600-9,600 Currency translation loss realised and transferred to profit & loss account on disposal of subsidiaries Dividend paid to minority shareholders (806) (806) Cash subscribed by minority shareholders ,481 10,481 Other adjustments - - (927) (1,441) - (2,368) 517 (1,851) Shares issued 1,250 7, ,417-8,417 As at 31 March 390, , ,167 1,914,387 (44,443) 3,393,507 1,194,929 4,588,436 Keppel Corporation Limited, Page 8 of 15

12 4b. Statement of changes in equity of the Company Share Capital Share Premium Account Capital Reserves Revenue Reserves Total 2006 As at 1 January 391, ,229 37,057 1,732,855 2,882,044 Net profit for the quarter ,667 9,667 Share-based payment - - 6,035-6,035 Shares issued 7,252 2, ,016 Reclassification arising from abolition of par value (Note 4c) 745,757 (722,993) (22,764) - - As at 31 March 1,144,912-20,328 1,742,522 2,907, As at 1 January As restated 389, ,593 28,955 1,575,836 2,855,770 Net profit for the quarter ,277 6,277 Share-based payment - - 1,865-1,865 Shares issued 1,250 7, ,417 As at 31 March 390, ,760 30,820 1,582,113 2,872,329 4c. Share capital Pursuant to The Companies (Amendment) Act 2005 effective from 30 January 2006, the concept of authorised share capital and par value has been abolished. Amount standing to the credit of share premium account and capital redemption reserve are transferred to share capital as at that date. Since 31 December 2005, the Company issued 2,415,500 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 786,220,924 ordinary shares of $0.50 each. As at 31 March 2006, there were unexercised options for 14,751,166 (31 March 2005: 13,817,499) of unissued ordinary shares of $0.50 each under the KCL Share Options Scheme. 5. AUDIT The financial statements have not been audited nor reviewed by our auditors. 6. AUDITORS' REPORT Not applicable 7. 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 Not applicable Keppel Corporation Limited, Page 9 of 15

13 9. REVIEW OF GROUP PERFORMANCE The Group started the year well with attributable profits of $170 million and earnings per share of 21.6 cents, the highest earnings and EPS achieved in a quarter. Annualised return of equity also reached a new high of 17.6%. In the quarter, Group revenue of $1,544 million was $411 million or 36% higher than that of the corresponding quarter in Revenue from Offshore & Marine Division of $1,216 million was 40% higher and it continued to be the highest contributor to Group revenue. Revenue from Property Division of $153 million was $27 million or 21% higher. The increased revenue was due to the higher sale of the Group s trading projects and rental income from its investment properties. Infrastructure Division and Investments also reported higher revenue for the quarter. At the pre-tax level, Group profit of $255 million was 25% higher than the first quarter last year with increased contributions from Offshore & Marine Division, Property Division and Investments. Offshore & Marine Division reported higher profit from the higher revenue recognition of its large orderbook. Property Division recorded slightly increased earnings of $50 million. Infrastructure Division achieved a breakeven at the pre-tax level compared to a small loss in the corresponding period of the previous year. Profit from SPC was lower because of subdued first quarter refining margins and the weak US$. However, the Group s other investment income were higher. After taking into account taxation charge and minority share of profit, the resultant profit attributable to shareholders of $170 million was $26 million or 18% higher than the corresponding period in Offshore & Marine Division remains the largest contributor to attributable earnings with 46%, followed by SPC with 18%, Property Division with 13% and the rest from Keppel T&T and Investments. In the opinion of the Directors, no factor has arisen between 31 March 2006 and the date of this report which would materially affect the results of the Group and the Company for the period just ended. 10. VARIANCE FROM PROSPECT STATEMENT No variance from previous statement. 11. PROSPECTS The Group expects to report improved earnings for the current year and is on course to achieve its earnings target of a double-digit average growth rate for the current year and Offshore & Marine Division secured a record $3.2 billion of new orders in the first quarter of the year bringing its net order book to $9.3 billion. Prospects for new contracts continue to be strong, underpinned by the higher crude oil prices and projected increased exploration and production spending in the oil and gas industry. The global economy is expected to grow strongly in the year despite rising oil and commodity prices. Against this backdrop and the continued constrained global refining capacity, SPC is expected to benefit from robust refining margins and larger upstream income. The recovery of the Singapore private residential market continued for the eight consecutive quarters, with an estimated 1.5% rise in the first quarter this year. The outlook for the regional residential markets remains positive supported by sound fundamentals. The current uptrend for rentals and occupancy for the Singapore office market is expected to continue as demand for prime office space grows while supply remains tight. The planned operation of the power barges in the fourth quarter 2006 and the commencement of the Cogen plant and Singapore largest NEWater plant in the first quarter 2007 are on track. Keppel Corporation Limited, Page 10 of 15

14 12. DIVIDEND/CAPITAL DISTRIBUTION 12a. Current Financial Period Reported On Any dividend recommended for the current financial period reported on? No 12b. Corresponding Period of the Immediately Preceding Financial Year Any dividend declared for the corresponding period of the immediately preceding financial year? No 12c. Date Payable Not applicable 12d. Books Closure Date Not applicable 12e. If no dividend has been declared/recommended, a statement to that effect. No dividend has been declared for the quarter ended 31 March For the year ended 31 December 2005, Directors had recommended a final dividend of 13 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 The Directors had also proposed a capital distribution of 23 cents per share without deduction for tax out of the Company s share capital. The capital distribution will be subject to the approval of shareholders at the Extraordinary General Meeting to be held on 28 April 2006 and when the Registrar of Companies has recorded the information lodged by the Company in the appropriate register. Subject to the above condition being satisfied, the Company plans to make the proposed capital distribution to shareholders tentatively on or around 27 June Keppel Corporation Limited, Page 11 of 15

15 13. SEGMENT ANALYSIS First Quarter ended 31 March 2006 BUSINESS SEGMENT Offshore & Marine Property Infrastructure Investments Elimination Total Revenue External sales 1,215, , ,804 23,604-1,543,643 Inter-segment sales - 1,209 16,942 12,653 (30,804) - Total 1,215, , ,746 36,257 (30,804) 1,543,643 Results Operating profit 104,911 43,231 (8,163) 35, ,524 Net investment income & interest income 16,255 1, (1,697) - 16,050 Share of results of associated companies 1,239 5,757 7,827 48,184-63,007 Profit before tax & exceptional items 122,405 50,311 (167) 82, ,581 Exceptional items Profit before taxation 122,405 50,311 (167) 82, ,581 Taxation (35,886) (5,432) (893) (6,189) - (48,400) Profit for the period 86,519 44,879 (1,060) 75, ,181 Attributable to: Shareholders of Company Profit before exceptional items 78,297 22,011 (2,711) 72, ,825 Exceptional items ,297 22,011 (2,711) 72, ,825 Minority interests 8,222 22,868 1,651 3,615-36,356 86,519 44,879 (1,060) 75, ,181 Other information Segment assets 4,579,826 6,233, ,479 4,195,931 (4,905,908) 11,024,126 Investment in associated companies 51,042 1,100,918 69,592 1,004,430-2,225,982 Total 4,630,868 7,334, ,071 5,200,361 (4,905,908) 13,250,108 Segment liabilities 3,521,127 5,073, ,700 3,354,661 (4,905,908) 7,606,183 Net tax provision & deferred taxation 210, ,738 3,977 28, ,120 Total 3,731,739 5,200, ,677 3,383,454 (4,905,908) 7,976,303 Net assets 899,129 2,134, ,394 1,816,907-5,273,805 Capital expenditure 32,731 1,570 92,854 1, ,632 Depreciation and amortisation 15,023 3,684 12, ,028 GEOGRAPHICAL SEGMENT Singapore Far East & Other ASEAN Countries America Other Countries Elimination Total External sales 1,089, , ,550 69,804-1,543,643 Segment assets 8,426,315 2,661,093 1,040, ,068 (1,316,572) 11,024,126 Capital expenditure 120,049 3,464 5, ,632 Keppel Corporation Limited, Page 12 of 15

16 First Quarter ended 31 March 2005 BUSINESS SEGMENT Offshore & Marine Property Infrastructure Investments Elimination Total Revenue External sales 867, , ,666 (154) - 1,132,790 Inter-segment sales 1 1,841 8,085 20,495 (30,422) - Total 867, , ,751 20,341 (30,422) 1,132,790 Results Operating profit 91,655 46,133 (8,813) (793) - 128,182 Net investment income & interest income 3,433 (527) 575 4,398-7,879 Share of results of associated companies 1,486 3,394 7,022 56,265-68,167 Profit before tax & exceptional items 96,574 49,000 (1,216) 59, ,228 Exceptional items - (9,600) ,000-1,375 Profit before taxation 96,574 39,400 (241) 69, ,603 Taxation (17,791) (7,031) 4,804 (12,160) - (32,178) Profit for the period 78,783 32,369 4,563 57, ,425 Attributable to: Shareholders of Company Profit before exceptional items 70,603 21,766 2,250 48, ,571 Exceptional items - (9,600) ,000-1,375 70,603 12,166 3,225 58, ,946 Minority interests 8,180 20,203 1,338 (1,242) - 28,479 78,783 32,369 4,563 57, ,425 Other Information Segment assets 3,087,350 5,788, ,172 3,397,980 (3,347,833) 9,588,169 Investment in associated companies 67, ,792 64, ,459-1,595,534 Total 3,154,809 6,493, ,996 4,156,439 (3,347,833) 11,183,703 Segment liabilities 2,178,100 4,518, ,294 2,663,735 (3,347,833) 6,309,155 Net tax provision & deferred taxation 184,369 79, , ,112 Total 2,362,469 4,598, ,299 2,686,141 (3,347,833) 6,595,267 Net assets 792,340 1,895, ,697 1,470,298-4,588,436 Capital expenditure 11, ,364 2,486-64,356 Depreciation and amortisation 14,304 3,596 12, ,229 GEOGRAPHICAL SEGMENT Singapore Far East & Other ASEAN Countries America Other Countries Elimination Total External sales 664, , , ,148-1,132,790 Segment assets 8,117,175 2,079, , ,818 (1,241,507) 9,588,169 Capital expenditure 60,551 1,112 2, ,356 Keppel Corporation Limited, Page 13 of 15

17 NOTES TO SEGMENT ANALYSIS 13a. Business segment The Group s businesses are grouped into four divisions: Offshore & Marine, Property, Infrastructure and Investments. The Investments division consists mainly of the Group's investments in SPC, k1 Ventures Ltd and MobileOne Ltd. These four divisions are the basis on which the Group reports its primary segment information. Keppel T&T s Logistics business has been reclassified from Investments division to Infrastructure division. Comparative figures have been adjusted to conform with the changes in presentation. 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. 13b. Geographical segment The Group operates in about 30 countries. Secondary segment information is provided by geographical segment in accordance to the above table. 14. REVIEW OF SEGMENT PERFORMANCE 14a. Turnover by Segments There was good growth in revenue across all business segments for this first quarter Offshore & Marine Division has been a consistent strong performer and continued to do well in this quarter, registering an increase of 40% in its revenue against the same period last year. 14b. PATMI by Segments On the back of a strong offshore market, Offshore & Marine s favourable earnings were translated into a strong PATMI. Earnings of Property Division were at the same level as 1Q 2005, as no major new projects were launched. Infrastructure Division continued to make losses because of the carrying cost of the power barges. Despite the slightly lower earnings in SPC, Investments Division performed well, mainly due to higher investment income. Keppel Corporation Limited, Page 14 of 15

18 15. INTERESTED PERSON TRANSACTIONS Name of Interested Person Aggregate value of all interested person transactions during the financial year under review (excluding transactions less than $100,000 and transactions conducted under shareholders' mandate pursuant to Rule 920) 3 months months Aggregate value of all interested person transactions conducted under a shareholders' mandate pursuant to Rule 920 of the SGX Listing Manual. (excluding transactions less than $100,000) 3 months months Transaction for the Sale of Goods and Services National University Hospital ,877 Singapore Airlines Group SembCorp Marine Group Transaction for the Purchase of Goods and Services Mapletree Investments Pte Ltd Transaction for the Acquisition of Companies Havelock Investment Pte Ltd Total Interested Person Transactions ,951 BY ORDER OF THE BOARD CAROLINE CHANG Company Secretary 27 April 2006 Keppel Corporation Limited, Page 15 of 15