Published August 21, 2008

k1 net jumps 175% to $26m

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VENTURE fund company k1 Ventures, part of the Keppel Group, yesterday reported a net profit of $72.2 million for the financial year ended June 30 - a 175.2 per cent jump from $26.2 million the year before.

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Click here for k1 Venture's financial statement

Earnings per share increased to 3.37 cents from 1.31 cents, while group revenue from continuing operations rose 56.1 per cent to $350.2 million, from $224.4 million previously.

The improvement in revenue was due mainly to the sale of shares in McMoRan Exploration Co (MMR) and the sale of an investment in DM&E by Helm Holding Corporation, the group's operating subsidiary.

The increase in revenue was partly offset by a decrease in Helm's leasing revenue and lower interest income from fixed deposits.

Compared with the previous year, group operating profit from continuing operations increased 110.2 per cent to $166.7 million in FY2008.

Helm is expected to continue to see weakness in rail traffic volumes, k1 said in its business outlook. 'Management will continue to be proactive in seeking to enhance shareholder value with its current portfolio of investments,' it added.

The group announced a one-tier final dividend of 5 cents per share (FY2007: nil). No capital distribution was proposed for FY2008, compared to a capital distribution of 6 cents per share for FY2007.

k1 recently sold about 2.38 million shares in MMR, a US oil and natural gas explorer, for US$70.1 million. k1 still owns about 2.31 million shares in it.

It was also ranked among the Fastest Growing 50 companies by DP Information Group. These are companies that have grown their sales at least 10 per cent annually in the past four years, while remaining continually profitable.