SINGAPORE (AFP) ? Singapore's state-linked investment firm Temasek Holdings said Thursday its net profit more than doubled in the year to March while the value of its global portfolio hit a record high.
Net profit for the year ended March 31 totalled Sg$13 billion ($10.6 billion), compared with Sg$5.0 billion the previous year.
The company -- which holds stakes in Singapore Airlines and other firms in telecoms, finance and real estate among others -- also reported a record year-end portfolio value of Sg$193 billion, up from Sg$186 billion.
Net profit surged "due to higher contributions from Temasek investment activities and improved profits from it's portfolio companies," Temasek said in a statement.
Total shareholder return was 4.6 percent during the financial year. Total shareholder return stood at a compounded 7.0 percent over a five-year period and 9.0 percent over 10 years.
"During the year, Temasek maintained its steady pace of investments and divestments," Temasek said.
"It supported the recapitalisations of its portfolio companies, and stepped up its investments in the energy and resources sector, as well as in non-Asia growth economies such as Latin America. Temasek closed the year with net cash."
The profit rise is a sharp rebound for the state-linked investment company after a plunge of 26 percent in the previous financial year, which reflected heavy losses in the aftermath of the global financial crisis.
Temasek chairman S. Dhanabalan said the firm had performed well despite remaining challenges for the world economy.
"While Asia rebounded swiftly in 2010, the USA and European economies continued to face uncertainties," he said in a statement.
"Rising debt burdens, inflation risks and political upheaval in the Middle East tested the resilience of the global economic recovery," he added.
Temasek holds stakes in sectors ranging from telecommunications, financial services and transportation to life sciences, real estate and energy.
The company said Asia accounted for 77 percent of its portfolio exposure, including 32 percent in Singapore.
North America and Europe plus Australia and New Zealand accounted for 20 percent and Latin America and other non-Asia growth regions for 3.0 percent.
Temasek said it made investments of Sg$13 billion during the year, with divestments totalling Sg$9.0 billion.
China remained the firm's largest investment destination.
"We will continue to invest in the transforming economies of Asia and Latin America," said Temasek chief executive Ho Ching.
"At the same time, we remain open and ready to participate in opportunities in mature markets such as our recent investments in the USA."
A consortium led by Temasek said late last year it had paid $60 million for a stake in a US-based online videogame firm called Gazillion Entertainment, developer and publisher of massively multiplayer online (MMO) games.
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