Listed Keppel Philippines Holdings, Inc., a shipyard operator and property investor, plans to spend almost P600 million in new cash to venture into infrastructure projects in the country, an executive yesterday said.
“Keppel’s strength in Singapore is environmental engineering. This includes waste recycling, energy, and water [projects],” Keppel Philippines Holdings President Stefan Tong told reporters after the company’s stockholders’ meeting.
“We are going…to see whether we can do some of the businesses we have in Singapore that we are not doing here in the Philippines,” Mr. Tong said.
Keppel Philippines Holdings is a subsidiary of Singapore’s Keppel Corp., Ltd., which is into offshore and marine business, properties and infrastructure.
Mr. Tong said timing for the new investment will likely be this year or next year pending results of exploratory studies.
“We will need partners. We do not profess to know Philippines that well,” Mr. Tong added.
The expansion plans come after a Keppel Cebu Shipyard Land, Inc. bagged P596.2 million from selling a 72% stake in the company to SMC Shipping and Lighterage Corp., a subsidiary of diversified conglomerate San Miguel Corp.
Keppel said it agreed to sell the stake as commercial operations on the site have already ceased anyway.
The “deed of absolute sale of shares and irrevocable proxy” was executed last week by Goodsoil Marine — the Keppel unit in charge of the Cebu subsidiary — and SMC Shipping and Lighterage.
SMC Shipping and Lighterage, which is 70% owned by San Miguel, is the group’s cargo handling and warehousing arm.
Mr. Tong said the company no longer has big-ticket assets to sell.
Profits of Keppel Philippines Holdings sank to P1.39 million in the first quarter from P14.96 million in the same period last year, less a P16.59-million one-time gain from an asset sale.
As of end-2010, the listed holding firm owned a 249,484-square- meter lot in Bauan, Batangas, eight office condominium units in Makati, one office condominium unit in Cebu City, and five residential lots in Batangas.
Keppel Philippines Holdings, was incorporated in July 1975 as Keppel Philippines Shipyard, Inc. for ship repair and construction projects before being converted into a holding firm in 1993.
Class “A” shares surged by 21.73% to P2.80 each yesterday while Class “B” shares were unchanged.
