Keppel Limited

[ValueMushroom]

Does having Keppel Land and other non oil and gas businesses and assets increase Keppel Corp survivability till and profitability in the next boom?

[Thaddy0103]

Does having Keppel Land and other non oil and gas businesses and assets increase Keppel Corp survivability till and profitability in the next boom?

Keppel Corp has it assets in many industry but I find it quite closely link to O&G.
Fundamentally it O&G and property division is facing a lot of headwinds.
Having said that it recent cost cutting and streamlining of it businesses can be taken as a positive signs.
I'm monitoring this counter closely and the only reasons I'm not vested yet was because of it recent impairments on it marine division which I find insufficient,compared to SemCorp Marine impairments.I remember reading somewhere that it exposure to their biggest customer,Sete Brasil,is almost on the same level.hence wondering why their impairment differed so much.
I'm vested on both Sembcop Marine & Industries
Can't help a gasp when I saw the impairments SCM made but on the positive side I do not see much more impairments needed.
If you are wondering why I'm vested on both this counter well SCM is meant to be a punt on privatization whereas I'm vested on SCI on the basis of its utilities business which I assume will start contributing on a meaningful basis in 1-2 years time.Meanwhile I'm just averaging it down as I started vesting on SCI @ 3.11.
Whereas on Keppel Corp something tell me to wait for the next quarter or some favorable tailwinds for their business to play it safe.

[Thaddy0103]

http://infopub.sgx.com/Apps?A=COW_CorpAn...cement.pdf

[cyclone]

http://infopub.sgx.com/Apps?A=COW_CorpAn...cement.pdf

Please write, at least, some information with regard to the link. Many Thanks.

Investigations in relation to contracts entered into with Petrobras and Sete Brasil.

[opmi]

I guess it is a well-known practice to use 'CONSULTANT' to get big govt deals....

[justtrying11]

For those who may not know, Keppel and SembCorp are the world leaders in the construction of jack-up rigs and the Koreans are the leaders in the construction of drill-ships. In terms of EBITDA margins, Keppel's Offshore and Marine business outperformed its peers, which include SembCorp Marine, Samsung Heavy Industries and Hyundai Heavy Industries.

Leveraging its capability in engineering, Keppel could diversify its business into other categories of the oilfield services sector. While the lower oil prices have affected all oilfield services providers, equipment manufacturers and drillers have still shown higher growth by revenue and profit margins relative to the rig construction sector. These sectors are made up of many smaller players and with oil prices at an all time low, there may be attractive acquisition opportunities.

A clear catalyst for Keppel would be the decision to focus on its strengths, which could be the Offshore & Marine and Infrastructure divisions as these are the significant revenue contributors.

They should consider selling off their property and investment divisions and use that capital to focus on what they are really good at.

[CityFarmer]

For those who may not know, Keppel and SembCorp are the world leaders in the construction of jack-up rigs and the Koreans are the leaders in the construction of drill-ships. In terms of EBITDA margins, Keppel's Offshore and Marine business outperformed its peers, which include SembCorp Marine, Samsung Heavy Industries and Hyundai Heavy Industries.

Leveraging its capability in engineering, Keppel could diversify its business into other categories of the oilfield services sector. While the lower oil prices have affected all oilfield services providers, equipment manufacturers and drillers have still shown higher growth by revenue and profit margins relative to the rig construction sector. These sectors are made up of many smaller players and with oil prices at an all time low, there may be attractive acquisition opportunities.

A clear catalyst for Keppel would be the decision to focus on its strengths, which could be the Offshore & Marine and Infrastructure divisions as these are the significant revenue contributors.

They should consider selling off their property and investment divisions and use that capital to focus on what they are really good at.

Diversification is the company strategy with its cyclical biz, to ensure reasonable stability in earning. The strategy shouldn't be altered, based on market condition. We will never know, when is the property up-cycle. I reckon, the best is to maintain the diversification, but fine-tuning the composition as required.

(not vested)

[jeremyow]

Agree with CityFarmer. Keppel Corp's strength has been in it being a conglomerate.

[Bibi]

The reason I buy into Kep Corp is because of its diversification. If Kep divest its property, reits and M1 stake, I will kiss Kep Corp good bye. Look at the losses rake up by SemMarine. Look at KepCorp and SembCorp profits. Ok, they made profits by selling off assets. So, what can SemMarine sell? What if oil prices wont recover above $90 (the price where oil rigs are in demand) due to low cost shale players?

[CityFarmer]

This update, triggers the dive in share price today, I guess...

(not vested)

Transocean says rigs from Keppel delayed until 2020

ZURICH (March 8): Transocean Ltd announced on Tuesday an agreement with Keppel Offshore & Marine Ltd's shipyard, Keppel FELS, to defer the delivery and related payments of five high-specification jackups until 2020.

"The Super B 400 Bigfoot Class jackup drilling rigs are now scheduled to be delivered in two and three month intervals beginning in the first quarter of 2020," it said in a statement.

A jackup rig is a type of mobile platform with a buoyant hull and adjustable legs which can raise its hull up off the sea.

Ordered in 2013, the first rig had been scheduled for delivery during the first quarter of this year, with the other four units thereafter at four-month intervals.

Exploration companies have been deferring or cancelling orders as crude oil prices down 70% since mid-2014 force them to cut costs.
http://www.theedgemarkets.com/sg/article...until-2020