Keppel Limited

Small deal. Really small. Better than nothing I guess. Will be interesting to see the full year results in Jan.

(not vested)

http://www.channelnewsasia.com/news/busi...84760.html

Quote:SINGAPORE: Keppel Corp's offshore and marine (O&M) arm has secured four contracts worth a total of about S$125 million, marking its first new project wins since August.
The four contracts include a liquefied natural gas (LNG) Floating Storage Unit (FSU) vessel conversion awarded by a wholly-owned subsidiary of long-time customer Bumi Armada, Keppel said in a statement on Tuesday (Dec 29).
All four contracts involved repeat customers.
Mr Chow Yew Yuen, Chief Executive Officer of Keppel O&M, said: "Even in challenging market conditions, we are glad to be the choice yard for operators. This is the 14th conversion/upgrading project that we are undertaking for Bumi Armada. It is also their first LNG FSU conversion project and we are proud to be their trusted partner again."
Keppel's O&M arm and rival Sembcorp Marine have been affected by the sharp drop in oil prices, which prompted energy companies to cut back on exploration and defer existing orders.
Sembcorp Marine warned earlier this month that it expects to record a net loss for the fourth quarter ending December, due to the challenging operating environment and customers deferring or seeking to defer their rig orders.

It is easier for future recycling ?

Share Swap involving Keppel Bay Tower and Harbourfront Tower 1 and 2

After the transaction :
Keppel Group owns 100% of Keppel Bay Tower.
Harbourfront Towers 1 and 2 both are fully owned by The Harbourfront Pte Ltd, a subsidiary of Mapletree Investments Pte Ltd.

(30-12-2015, 08:56 PM)cyclone Wrote: It is easier for future recycling ?

Share Swap involving Keppel Bay Tower and Harbourfront Tower 1 and 2

After the transaction :
Keppel Group owns 100% of Keppel Bay Tower.
Harbourfront Towers 1 and 2 both are fully owned by The Harbourfront Pte Ltd, a subsidiary of Mapletree Investments Pte Ltd.

It should, with a much cleaner ownership structure for both.

(not vested)

The Keppel Group of Companies is pleased to announce its Full Year 2015 financial results on the following dates:

* Keppel DC REIT on 14 January 2016
* Keppel REIT on 18 January 2016
* Keppel Infrastructure Trust on 18 January 2016  (Full Year 2015 refers to the financial period of nine months from 1 April 2015 to 31 December 2015.)
* Keppel Telecommunications & Transportation Ltd on 19 January 2016
* Keppel Corporation Limited on 21 January 2016

The sector is having "structural decline", due to "no rig orders", "low-quality non-rig orders" and "customer delays and lack of payment"??

It is sounds more like a cyclical decline, than structural ones? Isn't it?  

Offshore marine stocks fall by as much as 5% after downgrading by Macquarie

SINGAPORE (Jan 7): Offshore marine stocks took a hit on Thursday, a day after Macquarie Research warned that the sector was in structural decline, and the business models of Singapore shipyards will face "immense pressure" in the next five years.
...
The sector faces a "triple whammy":  no rig orders, low-quality non-rig orders, and customer delays and lack of payment. These will result in a structural decline in returns and balance sheets, the broker reckons.
...
http://www.theedgemarkets.com/sg/article...-macquarie

(07-01-2016, 02:26 PM)CityFarmer Wrote: The sector is having "structural decline", due to "no rig orders", "low-quality non-rig orders" and "customer delays and lack of payment"??

It is sounds more like a cyclical decline, than structural ones? Isn't it?  

Offshore marine stocks fall by as much as 5% after downgrading by Macquarie

SINGAPORE (Jan 7): Offshore marine stocks took a hit on Thursday, a day after Macquarie Research warned that the sector was in structural decline, and the business models of Singapore shipyards will face "immense pressure" in the next five years.
...
The sector faces a "triple whammy":  no rig orders, low-quality non-rig orders, and customer delays and lack of payment. These will result in a structural decline in returns and balance sheets, the broker reckons.
...
http://www.theedgemarkets.com/sg/article...-macquarie

they say that China are building more rigs now.. cheaper, and matching of quality..will our local shipyards be able to rebound strongly in the future?

(07-01-2016, 02:59 PM)jjlim84 Wrote:

(07-01-2016, 02:26 PM)CityFarmer Wrote: The sector is having "structural decline", due to "no rig orders", "low-quality non-rig orders" and "customer delays and lack of payment"??

It is sounds more like a cyclical decline, than structural ones? Isn't it?  

Offshore marine stocks fall by as much as 5% after downgrading by Macquarie

SINGAPORE (Jan 7): Offshore marine stocks took a hit on Thursday, a day after Macquarie Research warned that the sector was in structural decline, and the business models of Singapore shipyards will face "immense pressure" in the next five years.
...
The sector faces a "triple whammy":  no rig orders, low-quality non-rig orders, and customer delays and lack of payment. These will result in a structural decline in returns and balance sheets, the broker reckons.
...
http://www.theedgemarkets.com/sg/article...-macquarie

they say that China are building more rigs now.. cheaper, and matching of quality..will our local shipyards be able to rebound strongly in the future?

China shipyards are still far from matching Keppel's in rig-building value chain, and productivity, IMO.

Quote:AS investors of Sete Brasil - the largest single client at present for deep-water rigs being built at Sembcorp Marine (SembMarine) and Keppel Offshore & Marine (Keppel O&M) - meet to decide if the charter company of rigs should file for bankruptcy protection, a broker report suggested that the current woes mean only three out of six rigs for Keppel, and three out of seven rigs for SembMarine, will be built. - See more at: http://business.asiaone.com/news/bankrup...uDyBI.dpuf

http://business.asiaone.com/news/bankrup...sembmarine

Would the possible bankruptcy of Sete Brasil, the top client of Keppel and Sembcorp Marine, affect these two GLCs a lot?

The key reason for the current price diving, which is close to S$5.5 per share.

(not vested)

Singapore rigbuilders have further to fall: Citi

SINGAPORE (Jan 11): The plight of Singapore's rigbuilders could deteriorate, if the worst-case scenario currently being discussed plays through: a possible bankruptcy filing for embattled Brazilian firm Sete Brasil.

Around 40% of the orderbooks of Keppel Corp. ( Valuation: 2.40, Fundamental: 1.30) and Sembcorp Marine ( Valuation: 1.80, Fundamental: 1.10) are accounted for by Sete Brasil and they could suffer significant write downs of $10 billion or above if those orders fall through in part or in whole, according to Citi.

Unfortunately for investors, the bank says, their stocks could still fall further despite significant losses in recent months.
...
http://www.theedgemarkets.com/sg/article...-fall-citi

Keppel Corporation 4th Quarter & Full Year 2015 financial results highlights :

1. 4Q 2015 Net Profit down 44% to S$405 million, compared to 4Q 2014's S$726 million.
2. FY 2015 Net Profit down 19% to S$1,525 million, compared to FY 2014’s S$1,885 million.
3. Earnings per Share was 84.0 cents, down 19% from FY 2014's 103.8 cents.
4. Annualised Return on Equity of 14.2%.
5. FY 2015 Economic Value Added decreased to S$648 million from S$1,778 million YoY.
6. Cash outflow of S$694 million.
7. Net gearing was 0.53x.
8. Total cash dividends of 34.0 cents per share for FY 2015.
9. NAV per share = SGD 6.17, NTA per share = SGD 6.03