Professional Documents
Culture Documents
Contents
1.
Company Background...............................................................................................................2
2.
Recent Developments...............................................................................................................2
3.
4.
Bibliography..................................................................................................................................... 6
Financial Statements........................................................................................................................ 7
Appendix 1: Cash Flow Statement................................................................................................7
Appendix 2: Financial Ratios......................................................................................................10
Appendix 3: Balance Sheet.........................................................................................................11
Graphs: Financial Ratios................................................................................................................ 14
Graph 1: EPS............................................................................................................................. 14
Graph 2: P/E Ratio...................................................................................................................... 15
Graph 3: Dividend per share.......................................................................................................16
Graph 4: Book value................................................................................................................... 17
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1. Company Background
Keppel Corp is a Singapore based company which deals in marine property and
infrastructure businesses. The company was founded in 1968. Earlier company was
focussed on offshore and marine activities. In 1990 it acquired Asia Commercial Bank to
diversify its business and enter banking and financial services sector. Keppel Group of
Companies includes 4 fully owned subsidiaries and some partially owned subsidiaries and
shareholdings. According to its annual report, Keppel Group has presence in more than 30
countries with total assets of $31.6 billion.
2. Recent Developments
Currently its offshore and marine business is facing problems due to rise in oil prices
and financial downturn in China. The company is also facing the risk of oversupply as one
of its major business partner located in Brazil is facing difficulty in arranging funds for its
business. Under its Near Market, Near Customer Strategy, it is looking forward to finalise its
partnerships with Petroleos Mexicanos and Titan Petrochemicals Group which promise
growth in different geographies.
Keppel Group of companies listed the first data centre REIT of Asia on Singapore Stock
Exchange and were able to raise 513 million dollars through IPO. Currently, KEPPEL Data
Centre REIT has 1 billion dollars of assets under management through its 8 data centres
located in various strategically important areas located in Europe and Asia-Pacific. (M,
2015).
Seeing a surge in demand for high quality data centres across Europe, Keppel made
successful acquisition of Almere Data Centre 2 located in Netherlands previous year. It is
strategically placed near Alemere 1 data centre which is already an integral part of Keppel
Data Centre REIT. After this, Keppel added a 10,000 square feet warehouse in Australia, a
logistics hub in Singapore and another data centre in Vietnam (J, 2015).
In 2013, Keppel Infrastructure was formed and by the end of next year Keppel made plans
to combine CitySpring Infrastructure Trust with Keppel Infrastructure Trust and planned to
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inject 51% interest in Keppel Merlimau Cogen Pte Ltd to convert it into an enlarged entity
which also has a 1300 MW co-generation plant under its command (Corporation).
Singapore and China have adopted cooling measure which brought down the sales of
Keppel Land, which was able to sell only 2000 units in Asia, more than 50% reduction from
the previous years sales figure (Corporation). Keppel Land will continue to monitor the
markets closely to launch residential projects from its pipeline of about 70,000 homes
across Asia. It is also actively developing its portfolio of commercial properties overseas,
which comprises about 819,000 sm of gross floor area. Its joint venture with Array Holdings,
a retail management firm which is involved in managing one of the larger portfolios of
regional malls in Singapore and Malaysia, is part of our strategy to develop Keppel Land
into a multi-faceted property player.
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trend. EPS has decreased from 103 to 83.5 whereas P/E ratio has decreased from 0.09 to
0.08. Dividend per share has come down from 0.48 to 0.34 while Book value has come to
6.13 in 2015 from 7.22 in 2014 (refer to graphs).
The company has done very well in the past before global economic slowdown and is
expected to improve its performance as the efforts made now will start yielding results.
Several business deals with other companies conducted recently will open up new avenues
for Keppel Group. Its investment in clean energy will certainly bring a lot of opportunities.
We suggest not to invest currently in the stocks of Keppel Corp but if you are invested then
hold your stocks and wait for the market to revive.
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Bibliography
Corporation, G. C. (n.d.). Annual Report 2014: Keppel Corporation. Retrieved February 27, 2016,
from
Keppel
Corporation
Website:
http://www.kepcorp.com/annualreport2014/PDF/downloads/KCL_AR2014_Full_Report.pdf
J, F. (2015, November 1). Keppel Launches Greenfield Data Centre: marinelink. Retrieved
February 27, 2016, from Marinelink Website: http://www.marinelink.com/news/greenfieldlaunches400224.aspx
M, S. (2015, October 30). Keppel acquires data center project in Germany: DatacentreDynamics.
Retrieved
February
27,
2016,
from
DatacentreDynamics
Website:
http://www.datacenterdynamics.com/design-build/keppel-acquires-data-center-project-ingermany/95117.fullarticle
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Financial Statements
Appendix 1: Cash Flow Statement
2015
(value
in
2014
(value
millions
of
millions of
SGD)
in
SGD)
OPERATIONS
Net income
1,514
2,373
Depreciation/depletion
247
265
Non-Cash items
(405)
(526)
302
328
149
131
(2,061)
(2,108)
(705)
4.72
(1,147)
(595)
1,273
1,472
126
877
(3,313)
(263)
(872)
(763)
INVESTING
Capital expenditures
Other investing and cash flow items,
total
Total cash from investing
FINANCING
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Issuance (retirement) of stock, net
(40)
(14)
924
272
(3,302)
(769)
28
42
(3,853)
155
5,712
5,558
1,859
5,712
247
265
149
131
302
328
Net
cash-begin
interest
paid,
supplemental
Cash taxes paid, supplemental
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Appendix 2: Financial Ratios
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Financial Ratios
2015
2014
EPS
83.5
103
P/E Ratio
0.08
0.09
0.34
0.48
6.13
7.22
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Appendix 3: Balance Sheet
Balance Sheet
ASSETS
2015
2014
2,118
5,988
3,808
3,140
Total Inventory
10,651
10,681
Prepaid expenses
--
--
1,378
16,577
21,187
2,846
2,673
Goodwill, net
--
61
Intangibles, net
100
41
9,144
7,334
--
258
266
--
Total assets
28,932
31,555
Accounts payable
5,918
942
Accrued expenses
--
2,158
--
1,657
1,796
LIABILITIES
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leases
Other current liabilities, total
2,331
5,929
9,906
10,825
6,602
5,587
Total debt
8,259
7,383
356
266
Minority interest
830
4,347
142
149
Total liabilities
17,836
21,174
Common stock
1,288
1,288
--
--
--
9,676
(49)
(49)
--
103
9,856
(637)
Total equity
11,096
10,381
28,932
31,555
1,811
1,812
6.76
5.93
SHAREHOLDERS EQUITY
Retained
earnings
(accumulated
deficit)
Total
liabilities
&
shareholders'
equity
Total common shares outstanding
Treasury shares - common primary
issue
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Graph 1: EPS
EPS
120
100
80
EPS
60
40
20
0
2014
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2015
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Graph 2: P/E Ratio
P/E Ratio
0.09
0.09
0.09
0.09
P/E Ratio
0.08
Axis Title
0.08
0.08
0.08
0.08
0.07
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2014
2015
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Graph 3: Dividend per share
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2015
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Graph 4: Book value
Book value
7.4
7.2
7
6.8
6.6
Book value
6.4
6.2
6
5.8
5.6
5.4
2014
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2015
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