KepCorp's report for FY2015 this evening, in summary :-

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.

Okay ----- the dividend for the full year 2015 has been slashed by 10 Cts from the one for the full year 2014. The full year divvy payout for KepCorp is only 34 Cts for FY2015.

Against the last traded price of $4.91 this evening, the yield against a full year DPU of 34 Cts gives a yield of 6.925. If the rice drops further, this yield will increase further. But the lingering worry in the back of the head remains as : is the DPU of KepCorp sustainable moving forward ? Is the DPU resilient ? The price of KepCorp may retreat further later on, BUT, if the DPU follows suit, then the yield will be hit if one buys too early.

On the metrics front, ALL measurements are DOWN compared to 2014. However, for myself personally,... I will remain confident of KepCorp. I will not sell,....

Breather today,... STI up by 1.69% when I last saw on the running screen at DBS HQ...

RM macam makan steroid today, 1SGD now 2.999MYR..what happened?

SRR cut.

Can enligthen what is that going to do with MYR?

i saw on bloomberg... srr improves liquidity, confidence, fx inflow, buy mgs, rm appr.

may be temp or limited effect.

well, some disagree, so... u can check...

This post has been edited by AVFAN: Jan 22 2016, 10:36 PM

my banking stocks rally

After that dismal results for 2015 last Thursday,... Keppel Corp is now taking steps to lower headcount expenses by consolidating all its recurring income businesses, incl that of our favourite Keppel REIT and our Keppel DC REIT, into one entity called Keppel Capital,... slated to be up and running by the second half of this year. Keppel DC REIT has been running down just befre this new was released :-

Keppel plans to consolidate its interests in business trust, REIT and fund management under Keppel Capital and grow its asset management business.

In a major restructuring exercise to grow the contribution from its Investment Division, Keppel Corporation Limited (Keppel Corporation) plans to consolidate its interests in business trust management, real estate investment trust (REIT) management and fund management businesses (collectively, "Asset Management") under Keppel Capital Holdings Pte. Ltd. (Keppel Capital), a wholly-owned subsidiary of Keppel Corporation.

Asset Management is an important part of Keppel Corporation's strategy and business. Keppel Corporation currently has four subsidiaries ("Subsidiaries") in Asset Management, namely Keppel Infrastructure Fund Management Pte. Ltd. (the Trustee-Manager of Keppel Infrastructure Trust), Keppel DC REIT Management Pte. Ltd. (the Manager of Keppel DC REIT), Keppel REIT Management Limited (the Manager of Keppel REIT), and Alpha Investment Partners Limited (a fund manager) (Alpha).

Mr Loh Chin Hua, Chief Executive Officer of Keppel Corporation, said, "Creating and developing high quality real estate and infrastructure assets as well as stabilizing and monetizing them to generate strong cash flow and recurring income are integral parts of Keppel's business model. Keppel's asset management businesses currently manage S$26 billion of quality assets and contributed S$60 million of profits in 2015. The consolidation under Keppel Capital is part of our continuing plan to grow our assets under management and expand our capital platform for co-investing."

The proposed consolidation will benefit the Keppel Group by strengthening the Group's capital recycling platform and ability to make prudent and timely investments with an expanded capital base and without relying solely on its balance sheet. It will also improve the performance of the Subsidiaries and the funds, REITs and business trusts that they manage through centralising certain non-regulated support functions and creating a larger platform which will enhance recruitment and retention of talent, and sharing of best practices. This will improve the returns to the Keppel Group, and to other investors and unitholders, from their investments in the funds and unitholdings in the REITs and business trust. The proposed consolidation will also improve the Group's stable, recurring income from management fees. Keppel Corporation intends to consolidate its interests in these Subsidiaries and report them under a new consolidated reporting segment as part of its investments arm.

The proposed consolidation is only in relation to the change in shareholding of Alpha, the Trustee-Manager of Keppel Infrastructure Trust, the Manager of Keppel DC REIT and the Manager of Keppel REIT. It does not change the unitholdings in the REITs and business trust or investments in the funds.

Ms Christina Tan will be appointed the CEO-designate of Keppel Capital. Ms Tan is presently the Managing Director of Alpha. Ms Tan possesses over 20 years of experience in investing and fund management spanning the US, Europe and Asia, and has been with Alpha since its inception in 2003. Under her leadership, Alpha has grown its assets under management to over S$12 billion today.

The proposed consolidation is subject to board approval and (if required) shareholder and/or unitholder approval of the relevant Keppel Group entities, as well as the approval of the Monetary Authority of Singapore and other relevant regulatory approvals. Subject to obtaining the relevant approvals, Keppel Corporation aims to complete the proposed consolidation by the second half of 2016.

After the completion of the proposed consolidation, Keppel Corporation may consider increasing its scope to include regulated activities relating to investments and asset management. This increase in scope would be undertaken after obtaining the necessary licences and approvals from the Monetary Authority of Singapore.

So I see that the lowering of the SRR and the improving oil price seems to have strengthened our MYR. But has it occurred to any forummer here that if our Gov't lowers the SRR, our banks' positions will be weaker, and if there is any bank run, nobody will be able to save our banks ?

All over the world, there are schemes to strengthen bank positions, called RRRs, Basel-III, etc,... but now our Govt has lust lowered the deposit ratios of our banks,... just to inject more money supply into our mkt ???????

Will our FDs be under jeopardy, moving forward, if the economy weakens further and oil price drops further ???

The net effect is a combination of factors.

I think the srr cut helps liquidity, boost credit markets, spending, confidence, foreigners bought mgs. All that when oil price rebounded.

Do that when oil is dropping, u know what will happen.

If the ruble can gain >3% in the same period, the rm can gain too.


FDs... No change as of now, I believe.

This post has been edited by AVFAN: Jan 25 2016, 02:19 PM

Hi AV,... I agree with all that you have commented.

But you have not commented on the safety of our funds in our local banks. Don't you think that would be a bigger exposure to bank depositors in this country, with the banks' deposit requirements having been reduced ? Or are we saying that there is always PIDM there to save us if our banks start to get into trouble, and we having no need to worry about the capital requirements of our local banks ?

The major local banks are safe... They are well capitalize. Just don't keep all in one!



I am waiting for Jan 28, see what comes out of budget revision.

Plus next GDP, inflation data.

Not expecting much good news, really.

QUOTE(Hansel @ Jan 20 2016, 03:18 PM)
Well, the analyst did mention too that even if O&M earnings halve this year, a 20% ROE still deserves a healthy premium to book value. I suspect they still have remaining activities on other rigs besides the ones contracted with Sete Brazil, since they always mentioned that they will still be busy for the next two years.

KepCorp's reporting is on coming Thursday at 5.30 pm. Let's see what outlook that they have for this year, and if they will support the analyst's theory that there are still FPSO contracts out there, and if these contracts can be 'snatched' from competitors. Yes, I would agree that these high-value contracts should be almost none in the world by now. Maybe the ones that are available are more towards repair and refurbishment projects for these rigs, in preparation for the upswing in oil price.

Does your 1.5Mil barrels of excess oil daily include the contribution from Iran soon ?

Well,... referring to our comments last week,... looks like there is still work for Keppel O&M !


Keppel FELS delivers first rig of the year safely and on time !

It will be the fifth KFELS B Class jackup rig to work for Gulf Drilling International.

Keppel FELS, a wholly owned subsidiary of Keppel Offshore & Marine (Keppel O&M) has delivered Halul, a KFELS B Class jackup rig, to Gulf Drilling International Ltd. (q.s.c) (GDI) of Qatar. It was completed on 21 January 2016, ten days ahead of schedule, on budget and with a perfect safety record. It is the first rig that Keppel FELS has delivered this year.

Halul is also the fifth KFELS B Class jackup rig delivered to GDI. With its continued successful partnership with Keppel FELS, GDI has renewed options for two more repeat KFELS B Class rigs for deliveries in 2018 and 2019.

Mr Wong Kok Seng, Managing Director of Keppel O&M (Offshore) and Keppel FELS, said, "We are proud to deliver another rig to GDI early and safely. This is our first delivery of the year and we are proud that even in a low oil price environment, the KFELS B Class continues to be the preferred rig in the market for its high quality, efficiency and safety.

"While there is widespread industry cautiousness, the strong relationships we have built with our long-standing customers, such as GDI, enables us to work together to deliver projects in a win-win fashion."

The KFELS B Class rigs have a strong track record for GDI. Sister rigs Dukhan and Al Zubarah are operating successfully for Qatar Petroleum while Al Khor is performing well for Shell.

Mr. Mubarak A. Al-Hajri, Chief Executive Officer and Managing Director of GDI, said, "We are pleased to receive the Halul ahead of schedule, enabling us to start work earlier for Qatar Petroleum. Reliability, safety, efficiency and quality are our top priorities in choosing a rig and a shipyard. Keppel FELS and the KFELS B Class design have demonstrated their strengths in these areas repeatedly. That is why we have chosen to renew our options for two more rigs with them. We are confident in the long term fundamentals of the industry and when the market recovers, we will be well-equipped to meet the demand."

Built to GDI's requirements, the jackup rig has been designed to operate in the higher ambient temperature of the Middle East. The KFELS B Class is equipped with larger spud cans for reduced bearing pressure and expands its operational coverage in more places, especially in sea beds where soft soil is predominant. The rig can drill wells through 30,000 feet with a cantilever that can skid out 70 feet from the edge of the hull to drill wells. It features offline stand building capabilities and 7,500 PSI mud pumps, with accommodation for 150 persons.

Besides newbuild rigs, Nakilat-Keppel O&M, Keppel's joint venture shipyard in Qatar, recently completed a self-propelled and self-elevating liftboat for GDI.

Edited by putting in bold my earlier points and the points in the latest update by Keppel Corp..

This post has been edited by Hansel: Jan 25 2016, 06:34 PM

SG disinflation/deflation...?

You may want to note that this is a finished work. Most of their ongoing works are likely to have been captured and accounted for in the financials.
Thats the reason i am looking at the future work projections.

Tq prophet,... good discussion with you. The following rigs should not have been taken into account in the Earnings Statement yet. These are new orders : 'That is why we have chosen to renew our options for two more rigs with them.'

ok

but the contract with Sete has been accounted for. So this may cancel each other out

When you said the contract with Sete has been accounted for, do you mean the provision (bad debt) amounting to that $250M ? That $250M has already been taken into account in the previous Q earnings, and all-in, the total profit for FY2015 is $1.525B. So, if those two rig orders should come in from Global Drilling Investments (GDI) this year, these orders should add to the orderbook for FY2016. Hopefully, it happens.

Sometimes, it takes some effort to remember the numbers,...and if can't remember, need to search back into the reports or records,...hence, need to know where to search. One must either remember where to search, or remembers what the numbers are.

Sometimes, I just don't understand how some people are able to own 20 to 30 counters,... Strong memory power ?? Strong diligence to read reports every quarter ?

Yeah. They have made some provision for the contract





http://www.offshoreenergytoday.com/keppels...e-rig-division/

i See that the rig owners will either postpone, delay or totally suspend their projects at this low oil price environment. So as they do this, the contracts will be minimal for this year. i see declines of more than 15% spending in the E & P sector. You should see how many rigs are laid up. When i was in Labuan in July last year, i could count at least 30 rigs laid up there.
That was July 2015. It's gotten worse