Keppel Corp 02 (Jan 15 to Dec 25)

[behappyalways]

Keppel Land subsidiary divests remaining 30% interest in Vietnam's Dong Nai Waterfront City for $115.9 mil
https://www.theedgesingapore.com/news/p ... front-city

[behappyalways]

Keppel O&M to build wind turbine installation in US worth about $600 mil
https://www.theedgesingapore.com/news/o ... ut-600-mil

[behappyalways]

Keppel is selling Keppel Bay Tower for $657.2 mil to Keppel REIT
https://www.theedgesingapore.com/news/c ... eppel-reit


Keppel Land divests 100% interest in First King Properties for $131.1 mil
https://www.theedgesingapore.com/news/p ... s-1311-mil

[helios]

Exited all (3,300) yesterday afternoon ~ just a small profits .. on hindsight should have exited prior to Election days ...

[helios]

if it comes down to 5.30 once again, I may just buy back some ...

[behappyalways]

O&M impairments plunge Keppel into FY2020 loss of $506 mil
https://www.theedgesingapore.com/news/c ... ss-506-mil


Keppel O&M to exit offshore rig building business as part of Keppel Corp's Vision 2030
https://www.theedgesingapore.com/news/o ... ision-2030

[winston]

not vested

Going light

Market could be neutral over KEP’s strategy of moving into an asset-light operating company (Op Co) over time, while trying to offload stranded rigs.

FY20 net loss of S$506m was wider than our S$237m forecast due to weaker-than expected O&M in 2H20 and some impairment expenses.

Reiterate Add, with an SOP-based TP of S$6.40. O&M restructuring efforts to
take time to bear fruit. Medium-term catalyst: full exit from rig business.

Source: CIMB

https://rfs.cgs-cimb.com/api/download?f ... 06F5046B5A

[winston]

not vested

Keppel Corp (KEP SP)
2020: A New Dawn And A New Day

KEP reported a full-year loss of S$506m as it was impacted by large impairments that
were made in 1H20.

The company disclosed that it will be exiting the rig-building industry in a phased manner, which we view positively, and it has also put its logistics business up for sale as it remains sub-scale.

KEP remains inexpensive, trading at 1SD below its 5-year mean P/B of 1.0x.

Maintain BUY. Target price: S$6.10.

Source: UOBKH

https://research.uobkayhian.com/content ... e372c1232d

[winston]

vested

Keppel Corporation (KEP SP) - Time to move on

Since our last report, “O&M clarity likely by earlier 2021” on 30 October 2020, the share price of Keppel Corporation (KEP) staged a nice recovery, rising 30% till our rating turned HOLD on 8 January 2021 when the stock closed at SGD5.63.

At current levels, we see most of the positives priced in.

The group reported a SGD506m net loss in FY20, impacted by SGD952m of impairments in the offshore & marine segment.

Other key business units remained profitable.

As expected, the group will exit its offshore rig building business, and a restructuring of Keppel O&M will occur. However, the duration for the restructuring will take two to three years.

Meanwhile, the group will continue with the divestment of non-core assets and plough resources into new growth areas. HOLD.

Source: OCBC

[winston]

vested

Singapore rig builder Keppel to exit oil sector

By Kevin Foster

Singapore, 29 January (Argus) -- The world's largest builder of offshore oilrigs, Singapore-based Keppel, is pulling out of the sector and will instead focus investment on cleaner forms of energy.

Keppel is planning a comprehensive overhaul of its offshore and marine(O&M) business because of the global energy transition and major disruption in the oil industry, it said.
Keppel O&M will exit the offshore rig building business after completing construction of rigs under order and will not undertake any new projects requiring large upfront capital expenditure or without milestone payments.

"The energy transition is upon us. It has been accelerated and the headwinds being faced in the offshore and marine industry are intense," chief executive Loh Chin Hua said after announcing a S$506mn ($380mn) loss for 2020, mainly because of S$1.19bn losses in its O&M business.

The company has laid out a plan to split its offshore rig business into three parts, although it is also open to a sale.

Its Rig Co and Development Co will hold around S$2.9bn of completed and uncompleted rig assets. These will be put to work or sold as the oil market recovers, utilisation and day rates increase and the rigs generate steady cash flow, with an eye to an eventual sale of this business.

Operating Co will hold the rest of the assets and will be "transformed into an asset- light and people-light developer and integrator of offshore energy and infrastructure assets.

"This business has an order book of S$3.3bn, 82pc of which is in renewables and natural gas. It will exit the offshore rig building business and progressively pull out of low value-added repair work, instead focusing on floating infrastructure and similar projects that can deliver predictable cash flow.

These include offshore wind and solar farms, natural gas projects, production assets and new energy solutions such as hydrogen and tidal energy.

Source: Reuters