Keppel Corporation

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(29-01-2021, 06:35 PM)r0n Wrote:
(29-01-2021, 02:43 PM)Bibi Wrote: I tot exiting the rig business shld be good for the long term since oil prices will remain low and renewable energy sources are up and coming. But apparently the market doesnt seem to like what they hv heard bashing down its share price.

I think it's not so much about the plan but that there's no visibility on the execution - the change management part is especially crucial when reskilling the workers to do something very different from what they were doing previously. Keppel Corp have not provided sufficient visibility on how they intend to pivot and what is the roadmap for investors to expect.

If you live by the sword, you have to die by it. For the longest time, Keppel Corp was boasted by its marquee reputation as one of the top rig builders (anyone still remember the times when the Chinese upstarts poached Keppel FELs staff?).

By exiting the market where it once boasted a sizeable moat, does it mean that there will be more write downs of its intangibles and assets to come in FY2021? The gestation of any new business to build volume and then moat, has to take some time although it can be argued that Keppel Corp has been doing that for some time now.

The stock market is always a voting machine in the short term, and a weighing one in the long term.
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I wonder if such forecasts of "peak production" actually does have a certain margin of safety and also the uncertainty built into it? The actual peak production managed to be achieved was slightly less than 50% below the estimate.

Frequently, as investors, we only take note of the average/median value of the estimate but frequently miss out the uncertainty (or the range of values) around the single estimate value. IMHO, the uncertainty around the estimate is probably more important than the estimate itself.

MINUTES OF THE 53rd ANNUAL GENERAL MEETING OF THE SHAREHOLDERS OF KEPPEL CORPORATION LIMITED (THE “COMPANY”) HELD BY ELECTRONIC MEANS ON FRIDAY, 23 APRIL 2021 AT 3.00 P.M.

With the CBA Loan Facility, CBA was able to achieve first oil in December 2020. Regrettably, KrisEnergy recently announced that due to the significant under-performance of CBA, contrary to earlier projections, the consensual restructuring was no longer viable. Even if the restructuring exercise was completed, there was material uncertainty over KrisEnergy’s ability to continue as a going concern.

Sometimes even the best processes, and making carefully considered risk/reward decisions at each stage might still not result in a good outcome. This was not uncommon in offshore oil and gas exploration and production. KrisEnergy’s ability to continue as a going concern was premised on successful CBA development and successful completion of the consensual restructuring. Given the recent developments, the Company was assessing the appropriate course of action in respect of KrisEnergy. The carrying values of the Company’s investment, contract asset and loan receivable, as well as the amount outstanding under the RCF, amounted to approximately S$423 million. The Company was unable to accurately determine
the financial impact at this stage, as the situation required further analysis. The current values were predicated on KrisEnergy remaining as a going concern. In a situation where KrisEnergy could no longer continue as a going concern, there would be significant negative impact on these values

https://links.sgx.com/FileOpen/Minutes%2...eID=666180

KrisEnergy's update: https://links.sgx.com/FileOpen/Updates%2...eID=654118
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Rainbow 
KrisEnergy's Winding Up Petition and KCL's Appointment of Receivers

KCL benefits from a comprehensive first ranking security package over the assets of the KrisEnergy group. In view of KrisEnergy’s filing of a winding-up petition, KCL is now implementing detailed recovery plans developed in consultation with its financial advisor and legal adviser to preserve KrisEnergy’s assets and to maximise recoveries for KCL. Amongst other things, this will include imminently using that security package to appoint Patrick Bance, Mitchell Mansfield and Kent McParland each of Borrelli Walsh as joint and several receivers (“Receivers”) over the assets of a number of members of the KrisEnergy group including over the shares in and assets of KrisEnergy (Asia) Ltd. Once appointed, the Receivers will pursue all necessary action to maximise recoveries for the benefit of KCL.

When considering the declaration of interim and final dividends for the current financial year, the Company will take into account, inter alia, available profits and cash flows after ring fencing this impairment loss on this non-core investment.

https://links.sgx.com/FileOpen/GCAT_KCL%...eID=670489

Stay home and stay safe, everyone.
Heart
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(08-06-2021, 07:33 AM)¯|_(ツ)_/¯ Wrote: KrisEnergy's Winding Up Petition and KCL's Appointment of Receivers

KCL benefits from a comprehensive first ranking security package over the assets of the KrisEnergy group. In view of KrisEnergy’s filing of a winding-up petition, KCL is now implementing detailed recovery plans developed in consultation with its financial advisor and legal adviser to preserve KrisEnergy’s assets and to maximise recoveries for KCL. Amongst other things, this will include imminently using that security package to appoint Patrick Bance, Mitchell Mansfield and Kent McParland each of Borrelli Walsh as joint and several receivers (“Receivers”) over the assets of a number of members of the KrisEnergy group including over the shares in and assets of KrisEnergy (Asia) Ltd. Once appointed, the Receivers will pursue all necessary action to maximise recoveries for the benefit of KCL.

When considering the declaration of interim and final dividends for the current financial year, the Company will take into account, inter alia, available profits and cash flows after ring fencing this impairment loss on this non-core investment.

https://links.sgx.com/FileOpen/GCAT_KCL%...eID=670489

Stay home and stay safe, everyone.
Heart

Impairment to be made amounts to $318 million.

"the Company will recognise a loss of S$318 million in respect of its exposures to KrisEnergy in its 1H 2021 financial results. The loss is measured by estimating the recoverable amounts of the various assets of KrisEnergy, less its obligations in connection with the RCF, carrying amounts of investment, contract asset and receivable from KrisEnergy, and other costs to realisation of the assets. "
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Rainbow 
keppel@5.11 - halted

https://links.sgx.com/1.0.0/corporate-an...cdecf51a01

Sembcorp marine@0.19 - halted
https://links.sgx.com/1.0.0/corporate-an...598088e501

Stay home and stay safe, everyone.
Heart
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