THE Philippine unit of Singapore-based Keppel Corp. Ltd. reported a 3.1% decrease in its first-quarter attributable income to P6.01 million, while its after-tax income slightly grew with the increase in equity share of its investment in a property leasing firm in Zambales.
In a disclosure sent to the stock exchange Tuesday, Keppel Philippines Holdings, Inc. (KPH) said its net income expanded by 1.3% to P8.27 million from P8.16 million it recorded in the same quarter in 2019.
This was driven by the 37% increase to P2.8 million in equity net earnings of its associate, Consort Land, Inc. (CLI), as its net income also increased in the quarter.
KPH has a 13% indirect ownership in CLI, a property leasing and power distribution company owned by one of its subsidiaries, Goodsoil Marine Realty, Inc., which operates in Subic, Zambales.
In the quarter, the business earned P11 million in net income, compared with P8 million a year ago, attributable to the 38% increase in its power distribution sales.
Meanwhile, KPH’s rental revenue in the January-March period fell by 6.3% to P9.02 million due to lower lease rental on its properties in Batangas City.
The real estate company owns investment properties with an aggregate fair value of P1.1 billion, according to an independent appraiser cited by the company.
These land properties are owned by Goodwealth Realty Development Corp., one of the company’s subsidiaries.
The listed holding firm’s interest income also decreased by 22.6% to P3.59 million, dragged down by lower short-term loan balance of P262 million and drop in interest rates between 4.7% to 4.9% as against the 5.9% to 6.5% per annum rates in the same period from last year.
The company reduced its operating expenses in the quarter by 12.6% to P6.67 million, mainly caused by lower provision for impairment losses on creditable withholding tax, professional fees and outside services, repairs and maintenance, office supplies, membership dues and subscriptions, and utilities.
KPH said it was not affected by the impact of the global coronavirus disease 2019 (COVID-19) pandemic, while it enforced a work-for-home scheme for its employees during the enhanced community quarantine (ECQ).
“Notwithstanding the ECQ and the current COVID-19 situation in the Philippines, there are no known trends, commitments, events or uncertainties that will have a material impact on the Group’s liquidity for the remaining periods of the year,” it said.
In a separate disclosure, KPH saw its net income in 2019 rose by 87.5% to P26.6 million as its interest and rental earnings also grew.
Its rental income last year increased by 25.6% to P28.5 million, while its interest income went up 50% to P18.27 million.
On Tuesday, shares in KPH inched up 0.39% to close at P5.14 each. — Adam J. Ang
