Keppel Corp

Re: Keppel Corp

Postby Cheng » Mon Sep 15, 2008 2:38 pm

millionairemind wrote:Keppel's proposal for divestment of Senoko Incineration Plant selected
By Imelda Saad/S Ramesh, Channel NewsAsia | Posted: 14 September 2008 1150 hrs

SINGAPORE: Operations at the Senoko Incineration Plant are to be divested. For this, the government has selected the proposal from Keppel Integrated Engineering and Keppel Infrastructure Fund Management Private Limited.

The tender is worth an estimated price of S$462 million.


A joint statement from the Finance and Environment & Water Resources Ministries and the Monetary Authority of Singapore said the final price will be determined at the completion of the divestment, expected by the middle next year.

The Senoko Incineration Plant is one of four waste-to-energy incineration plants in Singapore.

It currently treats 2,100 tonnes of waste per day to produce 34 megawatts of green electrical energy.

The government issued a request for proposal in January this year to divest the Senoko plant.

The aim is improve efficiency in the waste management sector through greater private sector involvement and create opportunities for the public to invest in the infrastructure sector. A total of five bids was received for the project.

Under the new entity, the Singapore government will procure incineration services from the infrastructure trust, with operations conducted by Keppel Seghers Engineering - the environmental engineering arm of Keppel Integrated Engineering.

Keppel said it will inject the plant into a green business trust and list it, making it the first such listing in the world.

Chua Chee Wui, CEO, Keppel Integrated Engineering, said: "It will have a global portfolio comprising primarily environmental management assets.

"We believe this green business trust will offer eco-friendly investors the opportunity to participate in green projects, while at the same time enjoy stable and sustainable returns." - CNA/vm/ms


First such listing in the world usually performs badly, that is my bias. Look at CitySpring, greedy management. However, we have to look at the prospectus first. :)
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Keppel Corp

Postby ishak » Thu Sep 18, 2008 11:47 pm

Keppel to launch world's first green trust
ST, 15 Sep 2008

The world's first-ever green business trust, comprising solely of assets in the environmental management business, will be listed on the local stock exchange by the middle of next year.

In a statement yesterday, Keppel Corporation said that the trust will be established by its wholly owned subsidiary Keppel Integrated Engineering (KIE). It will be managed by KIE's subsidiary Keppel Infrastructure Fund Management.

One of the trust's first assets will be the Senoko Incineration Plant, which the Government has decided will be divested into KIE's trust for an indicative price of $462 million.


The plant currently treats 2,100 tonnes of waste per day to produce 34 megawatts of environmentally friendly 'green' electrical energy.

The Government announced in January that it was considering selling the Senoko plant either through a newly listed infrastructure business trust or to an existing listed trust.

It said the move was aimed at encouraging competition and improving efficiency in the waste management sector through greater private sector involvement, as well as creating investment opportunities for the public to invest in the infrastructure sector.

Singapore currently has four incineration plants that treat waste to produce electricity.

Keppel added that a fifth waste-to-energy plant its subsidiary is currently building in Tuas and Asia's largest operational Newater plant at Ulu Pandan will also be considered for injection into the trust.

Both plants are built under the private-public partnership initiative and will be owned and operated by Keppel for 25 years and 20 years respectively.

Keppel said yesterday that more details of the trust's IPO and listing on the exchange will be announced in due course.

'We believe this green business trust will offer eco-friendly investors the opportunity to participate in green projects, while at the same time enjoy stable and sustainable returns,' said KIE's chief executive Chua Chee Wui.
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Re: Keppel Corp

Postby winston » Thu Oct 02, 2008 11:28 am

Not vested. From Kim Eng:-

Keppel Corp – Company update (Rohan Suppiah 64321455) Previous day closing price: $7.95
Recommendation: Hold (reduced from Buy)
Target price: $7.65 (reduced from $13.20)

Bailout blues
We are downgrading our recommendation on Keppel Corp to a HOLD and cutting our price target to $7.65. We are also taking a neutral view on the overall Offshore and Marine sector in general, in view of the higher funding risks. The tightening credit market would very likely impact Keppel’s prospects on several levels.

Offshore is capital-intensive by nature
While Keppel’s Offshore and Marine (O&M) earnings are expected to be solid for the next 18 months on its current orderbook, we are concerned that its order flow will start to dry up. While we have highlighted that offshore demand should remain strong on the back of the need for increased crude oil production, drillers may be faced with little choice but to defer newbuilds as banks may be unwilling to continue to finance a business that is highly capital-intensive and risky in nature.

Property market not looking rosy in the near term
Aside from its property exposure through Keppel Land, Keppel directly holds 70% of the Reflections by the Bay project. Recent transaction flows have not been encouraging, with just 6 units sold back in August. We estimate overall average selling price at around S$1,900 psf. However, the resale market indicates that the current achievable selling price is around $1,500psf. There are still just over 500 units left unsold. The project’s hefty construction costs of $480psf will also limit profitability.

Keppel T&T’s slide exposes risk
Keppel T&T, Keppel’s 80%-owned subsidiary, saw its share price slide by 70% over the last week, on the back of sales by its second largest shareholder. The sell-down alone wiped out some $0.86 per share from Keppel’s value by our estimates, from $1.32 per share to $0.46 per share. With the stock thinly held and the potential for even more selldowns, this remains a risk to already jittery sentiment.

SOTP valuation at $7.65
Adjusting out sum-of-the-parts valuations to:-
1) market prices of listed entities;
2) a 10x multiple on lower prospects of its O&M division; and
3) lower potential selling prices of Reflections, this yields a fair price value of $7.65 per share – 3% lower than Keppel’s current share price.

Our worst case assumption pegs the stock at $5.91 if we slash listed entities by a further 20% and assume a hefty 20% conglomerate discount.
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Re: Keppel Corp

Postby LenaHuat » Thu Oct 02, 2008 7:11 pm

This blue chip made many investors blue in the face :mrgreen: Thank goodness, I no longer has any interest in this ticker.
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Re: Keppel Corp

Postby winston » Thu Oct 02, 2008 8:14 pm

Keppel wins $150 mln ship contracts

SINGAPORE - Conglomerate Keppel Corp said on Thursday that its unit Keppel Shipyard has won contracts from repeat customers for the conversion of two vessels worth $150 million (US$104.2 million).

Keppel said in a statement the contracts are from Single Buoy Moorings and Golar LNG, and work on the vessels will start in October. -- REUTERS
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
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Re: Keppel Corp

Postby Aspellian » Fri Oct 03, 2008 5:07 pm

winston wrote:Not vested. From Kim Eng:-

Keppel Corp – Company update (Rohan Suppiah 64321455) Previous day closing price: $7.95
Recommendation: Hold (reduced from Buy)
Target price: $7.65 (reduced from $13.20)


Our worst case assumption pegs the stock at $5.91 if we slash listed entities by a further 20% and assume a hefty 20% conglomerate discount.


Wow... incredible that in a BEAR market, analysts able to come up with all sorts of reasons to slash "target price"... being listed will be slashed, being a conglomerate will also be slashed!! slashed left-right-center.... :shock:

important lesson...

PROMISE, PASSION, PEACE, POWER, PURPOSE, PLAN, PATIENCE, PERSEVERANCE, PROTECTION
DELIGHT, DISCIPLINE, DILIGENT, DETERMINATION, DESIRE

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Re: Keppel Corp

Postby LenaHuat » Fri Oct 03, 2008 7:21 pm

Hi Aspellian

Yes, sentiments marks the market not fundamentals. It's better to watch the market than to participate in it now.
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Re: Keppel Corp

Postby winston » Thu Oct 09, 2008 8:30 am

Not vested.

KEPPEL CORP - Merrill Lynch cut its share target price for Keppel Corp to S$8 from S$15, citing Singapore's weakening property sector and falling oil prices. But the U.S. bank kept a "buy" rating on the shares.
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Re: Keppel Corp

Postby winston » Wed Oct 15, 2008 8:52 am

Not vested.

Citi retained its "buy" rating on rival rig builder Keppel Corp but cut the firm's target price to S$7.00 from S$12.97.
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Re: Keppel Corp

Postby millionairemind » Thu Oct 23, 2008 7:32 pm

=DJ UPDATE: Keppel Corp 3Q Net Up 10%; Warns Of Lower Rig Orders

SINGAPORE (Dow Jones)--Keppel Corp. (BN4.SG) said Thursday that its third-quarter net profit rose 10% on strong rig orders, but warned that orders may weaken going forward.

The world's largest builder of offshore oil rigs by output reported a net profit of S$273 million for the three months ended Sept. 30, up from S$248 million a year earlier.

A Dow Jones Newswires poll of five analysts had forecast a net profit of S$281 million.


Revenue rose 24% to S$3.21 billion from S$2.59 billion a year earlier, the company said in a statement.

The company's property unit, Keppel Land Ltd., reported Wednesday a 44% on year fall in profit at S$46.2 million for the third quarter, while Keppel's associate Singapore Petroleum Co. said its net profit plummeted to S$619,000 compared with S$98 million a year earlier because of lower refining margins.

"We believe that the fundamentals underpinning rig... demand are still intact although in the foreseeable future, some rig owners' ability to expand their fleet could be constrained by tight credit," Keppel said in the statement.

However, the company said that a slowdown in rig orders over the next 12-15 months shouldn't have a significant impact on Keppel.

"Keppel O&M (offshore & marine) has about S$13 billion in orders stretching up to 2012," the company said.


It said that Keppel's O&M unit has already received a total of 50% payment from existing contracts.

"Our order book is robust and well-diversified, comprising national oil companies such as Petrobras and PetroVietnam and large oil services companies," it said.

Keppel said that the company won't be aggressively bidding for contracts and will avoid deferred payment contracts. It said that the O&M division has successfully completed and delivered on time 29 projects during the three quarters of the year.

On the outlook for its property operations, the company said that slower global economic growth is expected to result in the softening of the property market.

Sales of Singapore and regional private residential properties in the first nine months of the year have been subdued, the company said, but added that "the property division is in a position to ride through the current market gyrations."

"Our businesses will face a myriad of uncertainties and challenges ahead but we shall continue to stay focused in our execution and proactively manage the situation," Keppel said.

"Our gearing is budgeted to reach 20% at year-end 2008. Coupled with our positive free cash-flow this should help us retain our competitiveness. Cash flow management will continue to be a key focus for the group," it said.

-By P.R. Venkat, Dow Jones Newswires; 65 6415 4152; [email protected]
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Disclaimer - The author may at times own some of the stocks mentioned in this forum. All discussions are NOT to be construed as buy/sell recommendations. Readers are advised to do their own research and analysis.
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