|Bid||6.14 x 0|
|Ask||6.15 x 0|
|Day's range||6.09 - 6.16|
|52-week range||5.67 - 8.21|
|Beta (3Y monthly)||1.51|
|PE ratio (TTM)||13.86|
|Earnings date||17 Jul 2019 - 22 Jul 2019|
|Forward dividend & yield||0.25 (3.69%)|
|1y target est||8.23|
SINGAPORE (May 13): Keppel Offshore & Marine’s (Keppel O&M) wholly-owned subsidiary Keppel FELS has secured a contract from Danish renewable energy company Ørsted for two offshore wind farm substations worth more than $150 million.The contract comprises detailed engineering, procurement, construction, testing and commissioning for two offshore wind farm 600MW substations but excludes certain electrical components to be furnished by Ørsted.Keppel's workscope is scheduled for completion in the third quarter of 2021. The substations will be deployed in Ørsted's Greater Changhua offshore wind sites in Taiwan, which have a total potential capacity of 2.4 GW.Tan Leong Peng, Executive Director (Offshore) of Keppel O&M, says, "Offshore wind energy continues to gain traction around the world, and a large number of wind farms are under planning and construction. We have been able to leverage and extend our capabilities in offshore engineering and construction to provide services and solutions for this fast-growing adjacent sector, supporting the evolving needs of the energy industry."Taiwan has announced plans to achieve 5.5 GW of installed capacity for offshore wind by 2025. It has also set an indicative target of 10-17 GW by 2030.Keppel O&M is able to tap on its offshore design, engineering and construction capabilities for developing solutions across the value chain of offshore wind farms, such as wind turbine foundations, substation platforms, as well as installation and support vessels.The above contract is not expected to have a material impact on the net tangible assets or earnings per share of Keppel Corporation for the current financial year.Keppel Offshore & Marine is a division of Keppel Corp whose shares closed 2 cents lower at $6.51 on Friday.
SINGAPORE (May 7): Keppel FELS, a subsdiary of Keppel Offshore & Marine (Keppel O&M), in a consortium with Aibel AS, has secured a contract from TenneT Offshore, a grid operator in the Netherlands and Germany.Under the contract, Keppel FELS will design, construct, install and commission a 900MW offshore high voltage direct current (HVDC) converter station and an onshore converter station.Keppel FELS’ share of the contract is worth about $560 million.Together with its subcontractor ASEA Brown Boveri (ABB), the consortium will also undertake the installation and startup operations of the offshore and onshore converter stations in Germany.Scheduled to be completed in 2024, the two converter stations will be part of the DolWin cluster servicing offshore wind farms in the German sector of the North Sea.The offshore converter station will be located 130km from the onshore converter station and will provide grid connection for the offshore wind power plants to transmit and supply electricity to about a million households in Germany.Chris Ong, CEO of Keppel O&M, says, “This is Keppel O&M’s first major project of this scale and extends our track record in supporting the renewable energy industry. We see opportunities in this segment as the offshore renewables market is expected to increase significantly over time with increasing concerns over climate change. Keppel O&M is able to leverage our expertise in offshore energy infrastructure to offer customised and high quality solutions across the offshore wind farm value chain.”Shares in Keppel closed 2.60% higher on Tuesday at $6.72.
* China to go ahead with talks despite Trump's threat * Malaysia awaits policy rate decision * Thai stocks fall after holiday By Nikhil Subba May 7 (Reuters) - Southeast Asian stocks recovered on Tuesday ...
SINGAPORE (April 29): Keppel Capital Holdings, the asset management arm of Keppel Corporation Limited, says its Alpha Asia Macro Trends Fund III (AAMTF III) is acquiring 100% stakes in three Grade ‘A’ freehold commercial buildings in Seoul, Korea, for a total of KRW 430 billion ($510 million).The portfolio of three commercial buildings comprises Yeouido Finance Tower at the Yeouido business district, Nonhyun Building at the Gangnam business district, and Naeja Building at the Gwanghwamun central business district.In a press release on Monday, Keppel says it expects Yeouido Finance Tower, a 21-storey office and retail mixed-use development with approximately 42,300 sq m in gross floor area (GFA), to benefit from the upcoming rail line GTX B.Slated for completion in 2025, the new rail line will improve the property’s accessibility by connecting Yeouido to the Songdo international business district and major stations in the CBD, including Seoul station and Yongsan station, adds the group.Meanwhile, Nonhyun Building is a 20-storey office and retail mixed-use development with a GFA of 18.600 sq m.Keppel highlights the property’s accessibility – being adjacent to Nonhyun station and a five-minute drive away from Gangnam station and the Gangnam Retail District – as well as a tenant portfolio including notable individuals such as Hanwha Life Insurance and Fissler Korea.Lastly, Naeja Building is a 15-storey office development with 13,000 sq m in FGA. It is currently fully leased to local businesses, its anchor tenant being law firm Kim & Chang.The group says this property is also highly accessible as it is within a three- and 10- minute walk away from Gyeongbukgung Place station and Gwanghwamun station, respectively.“The office sector is expected to see limited supply over the next few years while leasing demand is projected to remain steady. We are confident that these favourable fundamentals, coupled with our experienced team, active asset management on the ground and robust value creation strategies, will enable us to generate good returns for AAMTF III’s investors,” says Robert Sung, CEO of Keppel Investment Management.“We will continue to build on this traction and actively pursue quality opportunities to strengthen our product offerings in South Korea,” he adds.Shares in Keppel Corp closed 1 cent lower at $6.79 on Monday.
Keppel Reit has acquired a 99.38% stake in T Tower, a freehold Grade A office building in Seoul’s CBD, according to the Reit manager, Keppel Reit Management. The agreed property value is KRW 252.6 billion ($301.4 million).
SINGAPORE (Apr 23): Keppel REIT is acquiring a 99.38% stake in T Tower, a freehold Grade A office building in Seoul’s CBD for KRW 252.6 billion ($301.4 million). The remaining 0.62% stake will be acquired by subsidiary Keppel Capital Holdings. The seller is PGIM Real Estate, the real estate investment business of PGIM, the global investment management businesses of Prudential Financial.
* Oil prices hit 2019 high on Iranian crude exports ban * Indonesia interest rate decision due on Thursday * Malaysia, Philippines, Vietnam, Thailand end little changed By Mensholong Lepcha April 22 (Reuters) ...
A look at 10 key points from Keppel Corporation Limited’s (SGX: BN4) latest results presentation.
Singapore conglomerate Keppel Corp is planning to 1,800 staff this year at its offshore and marine business, the first time the company is hiring for the division after cutting thousands of jobs since 2015. The slump in oil prices in 2014 and a global oversupply of drilling rigs had hit orders at the company's O&M division, but demand is slowly returning. "With the expected increase in work flow as well as preparing for the upturn we would be looking to add to our (O&M) workforce this year," Keppel CEO Loh Chin Hua said at the company's results briefing.
SINGAPORE (Apr 18): Keppel Corporation saw its earnings fall 39.9% to $202.9 million for the 1Q19 ended March, from $337.5 million a year ago.The decline was mainly attributable to the absence of a $289 million gain in 1Q18 arising from the en bloc sale of Keppel Cove in Zhongshan, China.In 1Q19, the group recorded gains of $174 million from the divestment of a 70% interest in Dong Nai Waterfront City, Vietnam and the re-measurement of previously held interests in M1 at acquisition dateConsequently, other operating income was halved to $145.6 million in 1Q19, from $300.0 million a year ago.1Q19 revenue grew 4.1% to $1.53 billion, from $1.47 billion a year ago.The increase was underpinned by higher revenues from power and gas sales, infrastructure projects in Singapore and Hong Kong, asset management and the consolidation of M1, offset by lower contributions from property trading in Singapore.Keppel Corp’s Offshore & Marine (O&M) Division registered a net profit of $6 million for 1Q19, compared to a net loss of $23 million a year ago.This was due mainly to a share of results from associated companies which turned profitable year on year, as well as lower taxes.The Property Division – the largest contributor to the group’s 1Q19 net profit – recorded a net profit of $132 million, 65% lower than $378 million a year ago.This was due mainly to the absence of gains from the en bloc sale of Keppel Cove in Zhongshan, China and lower contribution from Singapore property trading. The decline was partly offset by gains from disposing a partial interest in Dong Nai Waterfront City, Vietnam.The Infrastructure Division’s net profit of $16 million for 1Q19 was 38% lower than a year ago.This was mainly due to lower contributions from the energy infrastructure and logistics businesses, as well as a share of losses from Keppel Infrastructure Trust in the current period.Earnings per share (EPS) fell 40% to 11.2 cents.As at end March, cash and cash equivalents stood at $1.72 billion.“The main pieces of our strategic transformation are in place. Our focus is now on execution. When we have successfully executed on our strategy, Keppel will be a powerhouse of urbanisation solutions, with not only higher profits, but also higher quality, recurrent earnings,” says Loh Chin Hua, CEO of Keppel Corp.“We will work all our engines hard towards achieving a mid-to-long term ROE target of 15% for the group,” he adds.Shares in Keppel Corp closed 0.3% lower at $6.74 on Thursday, before the announcement.
SINGAPORE (Apr 17): Keppel Offshore & Marine (Keppel O&M) has secured integration and upgrading contracts worth a combined value of about $160 million through its wholly-owned subsidiaries.The first contract is between Keppel Shipyard and a leading operator of oil and gas production vessels for fabrication and integration work on a Floating Production Storage and Offloading (FPSO) vessel.The shipyard's work scope includes the fabrication of several topside modules, the riser balcony, the spread-mooring and the umbilical support structures as well as installation and integration of associated equipment and all topside modules onto the FPSO.Work is expected to start in 3Q19 with delivery scheduled for 2021.The second contract is between Keppel FELS and Diamond Offshore for the upgrade of the drilling semisubmersible rig Ocean Onyx.Keppel FELS' scope of work includes the engineering, fabrication and installation of new pontoons, columns, bracings and a wing deck. The Ocean Onyx was first upgraded in 2012 by Keppel AmFELS, Keppel O&M's yard in the US, from an old semisubmersible rig.Scheduled for delivery in 2H19, Ocean Onyx will initially be deployed offshore Australia.Diamond Offshore is Keppel FELS' long-standing customer and the two companies have collaborated on more than 12 projects since 2005.Chris Ong, CEO, Keppel O&M, says, "These contracts from repeat customers are testament to Keppel O&M's strong customer service in delivering on time, within budget and safely as well as our extensive track record in modification and upgrading projects for a wide variety of products such as FPSOs and drilling rigs."With strong engineering expertise and project management capabilities, we work closely with our clients to understand their requirements and provide customised, reliable, cost-efficient and value-added solutions."Keppel O&M is a wholly-owned company of Keppel Corporation which is announcing its 1Q results tomorrow.See: Keppel to see stronger 1Q earnings on property trading and divestment, says CGS-CIMBShares in Keppel closed 15 cents higher at $6.76 on Wednesday.
SINGAPORE (Apr 17): Keppel Corp is announcing its 1Q19 results on Thursday, after market close.CGS-CIMB Research expects Keppel to achieve net profit of $230 million largely be driven by property trading and divestment of interests in the Dong Nai project in Vietnam.The research house says the restructuring of Keppel’s various businesses are slowly falling into place with the completion of M1’s acquisition; the privatisation of Keppel T&T (KTT) and with the long-awaited delivery of Sete Brasil semi-subs.“In the short term, Lim expects Keppel’s share price to be sustained by stronger q-o-q 1Q19 earnings, driven by profitability in Offshore & Marine and divestment gains,” says lead analyst Lim Siew Khee in a recent report.CGS-CIMB is maintaining its “add” and target price of $8.41, based on SOP valuations. Stronger than expected O&M recovery could be a key catalyst for the stock.Lim says the completion of the M1 acquisition and privatisation of Keppel T&T (KTT) should enable Keppel to begin executing its transformation plans even though Keppel’s net gearing could go up from 0.4x in FY18 to 0.6x in FY19.But before M1 can see a major transformation, she says cost optimisation and cross-selling for the telco should be its near-term priority.Consolidation of M1 should contribute $6-7 million in 1Q19 but looking further ahead, Lim forecasts M1 to contribute $67 million in FY19F and $58 million in FY20F to Keppel, based on effective ownership of 84% via Konnectivity and 100%-owned KTT.Meanwhile, privatisation of KTT should expedite asset injection of 100% SGP 4 into Keppel DC REIT.“We think this could take place in 2H19 with stronger y-o-y occupancy and stabilisation of assets,” says Lim, “Our REIT analyst estimates SGP 4 to be valued at $420 million with KTT owning 40%...”As for Keppel O&M, Lim says the semi-subs option exercised by Awilco at US$425 million ($575 million) in March shows there is potential for more orders of floaters in its $2.5 billion order wins assumption for 2019.Near-term catalyst could be the long-awaited delivery of two semi-subs from Sete Brasil, either to Borr Drilling or Magni Partners or to Keppel which could keep to generate recurring chartering income.Without provisions seen in 4Q18, the research house expects Keppel O&M to deliver net profit of $5 million with EBIT margin of 4% from the Awilco semi-subs.As at 12.46pm, Keppel is trading at $6.78 or 7.8x FY19F -- below its 10-year average of 12x -- with P/BV of 1.04.