Scope of Briefing Address by Executive Chairman Group Financial - - PDF document

▶
scope of briefing
SMART_READER_LITE
LIVE PREVIEW

Scope of Briefing Address by Executive Chairman Group Financial - - PDF document

Nov 20, 2023 355 likes •646 views

9 Months 2008 Results Announcement 23 October 2008 1 Scope of Briefing Address by Executive Chairman Group Financial Highlights Business Review & Outlook 2 1 Address By Executive Chairm an 3 Sturdy Perform ance I n

slide-1
SLIDE 1

1

1

9 Months 2008 Results Announcement

23 October 2008

2

Scope of Briefing

  • Address by Executive Chairman
  • Group Financial Highlights
  • Business Review & Outlook
slide-2
SLIDE 2

2

3

Address By Executive Chairm an

4

Sturdy Perform ance I n Challenging Tim es

  • Subprime problem snowballed into a financial

crisis

  • Major economies experiencing slowdown;

business landscape changing

  • 3Q’08 PATMI on track – rose 10% to $273m,

9M’08 PATMI up 10% to $834m

slide-3
SLIDE 3

3

5

W eathering Uncertainties W ith Prudent & Measured Approach

I nfrastructure

Robust and well-diversified orderbook of $13b into 2012 Received aggregate 50% payment in respect of all existing contracts Prudent project selection process

Property

Singapore residential – extracting value from former shipyard site Office – positive rentals reversions from low base; long-term leases

pre-committed for MBFC

Regional residential – markets underpinned by fundamentals

Oil & Gas

Upstream to partially mitigate weaker refining contribution

Offshore & Marine

Sovereign projects minimise contractual risks

6

Staying Focused

  • Proactive management
  • Healthy balance sheet and positive free cashflow
  • Continue to build up resources and capabilities

to capture opportunities

slide-4
SLIDE 4

4

7

Group Financial Highlights

8

9 M Financial Perform ance

PATMI EPS Annualised ROE EVA Free cash flow Net gearing 10% to S$834m 9% to 52.4cts from 21.8% to 21.5% S$27m to S$614m 13% to S$1,462m from 0.09x to 0.03x

slide-5
SLIDE 5

5

9

Financial Highlights

S$ m 9 M 2 0 0 8 % Change Revenue 8 ,0 7 1 1 4 EBI TDA 9 4 9 9 Operating Profit 8 4 8 8 Profit Before Tax 1 ,2 0 0 6 PATMI 8 3 4 1 0 EPS ( cents) 5 2 .4 9 9 M 2 0 0 7 7 ,0 7 3 8 7 4 7 8 3 1 ,1 3 5 7 5 8 4 7 .9

10

S$ m 9 M 2 0 0 8 % % Change Offshore & Marine 5 ,5 8 1 6 9 1 1 Property 7 2 2 9 ( 4 7 ) I nfrastructure 1 ,7 4 2 2 2 1 7 5 I nvestm ents 2 6

  • ( 3 8 )

Total 8 ,0 7 1 1 0 0 1 4

Revenue by Segm ents

9 M 2 0 0 7 % 5 ,0 4 8 7 1 1 ,3 5 0 1 9 6 3 3 9 4 2 1 7 ,0 7 3 1 0 0

slide-6
SLIDE 6

6

11

S$ m % Change Offshore & Marine Property I nfrastructure I nvestm ents Total

PATMI by Segm ents

9 M 2 0 0 8 % 4 8 4 5 8 1 1 6 1 4 4 1 5 1 9 3 2 3 8 3 4 1 0 0 1 8 ( 2 7 ) 1 2 8 1 2 1 0 9 M 2 0 0 7 % 4 0 9 5 4 1 5 9 2 1 1 8 2 1 7 2 2 3 7 5 8 1 0 0

12 1 9 2 2 3 7 2 7 7 3 6 6 2 0 2 2 8 7 3 8 5 2 2 8 2 5 2 2 6 2 2 5 8 2 9 9 2 4 8 2 7 3 2 6 8 '0 3 '0 4 '0 5 '0 6 '0 7 '0 8 1 2 .4 1 5 .3 1 7 .7 2 3 .2 1 3 .1 1 8 .4 2 4 .5 1 4 .6 1 6 .5 1 5 .9 1 8 .8 1 6 .4 1 7 .1 1 5 .6 1 7 .0 '03 '04 '05 '06 '07 '08

Consistent Earnings Grow th

1 H 2 H

PATMI ( S$ m ) EPS ( Cents)

3 9 4 2 5 .5 4 6 5 2 9 .9 5 6 4 3 6 .1 7 5 1 4 7 .7

1 Q: 1 Q:

1 ,0 2 6 6 4 .9

2 Q: 2 Q: 3 Q: 3 Q: 4 Q: 4 Q: 1 Q: 1 Q:

8 3 4 5 2 .4

2 Q: 2 Q: 3 Q: 3 Q:

slide-7
SLIDE 7

7

13

Continued EVA Grow th

’0 2 ’0 3 ’0 4 S$ m ’0 5 ’0 6 ’0 7 670) 470) 270) ( 70) 130 330 530

+ $ 1 7 0 m + $ 1 6 0 m

( 2 9 5 ) ( 1 2 5 ) 1 9 9

+ $ 1 6 4 m

3 5 4 2 3

+ $ 2 2 4 m

6 0 4

+ $ 1 8 1 m

( 6 6 5 )

+ $ 3 7 0 m

’0 1 9 M’0 8

6 1 4 9 M: 5 8 7

+ $ 2 7 m

14

ROE Perform ance

* Annualised ROE 13.4% 15.5% 16.4% 19.1% 21.8% 21.5% 14.1% 10.1%

2 0 0 1 2 0 0 2 2 0 0 3 2 0 0 4 2 0 0 5 2 0 0 6 2 0 0 7 9 M'0 8 *

slide-8
SLIDE 8

8

15

Healthy Free Cash Flow

9M 2008 S$m Operating profit 848 Depreciation & other non-cash items 114 Working capital changes 765 Net cash from operating activities 1 ,5 5 2 Net cash used in investing activities ( 9 0 ) Free Cash Flow 1 ,4 6 2 Investments & capex (391) Dividend income 301 Interest & tax paid (175) 962 Dividends paid ( 1 ,1 9 7 )

16

Business Review & Outlook

slide-9
SLIDE 9

9

17

Offshore & Marine

18

Steady Order Flow

  • Secured S$1.6b contracts in 3Q’08, taking 9M’08
  • rders to S$5.2b (9M’07: S$4.4b)
  • Another 2 semis
  • 1 FPSO conversion, 1 FSO upgrade
  • An eco-friendly derrick pipelay vessel
  • S$13.0b net orderbook at end-Sep’08 – added

deliveries into 2012

Secured two conversion contracts worth S$150m in Oct’08

slide-10
SLIDE 10

10

19 1.3 2.3 2.6 3.3

0.0 1.0 2.0 3.0 4.0 2005 2006 2007 9M'08

Buoyant Deepw ater Market

S$b

* Include semi drilling tenders

  • Tight deepwater rig

market – high semis utilisation at 99%

  • Deepwater finds to

prompt new orders

  • Clinched 42% of global

semi newbuilds in 9M’08

Well-positioned to tap opportunities with our global yards

Sem is* Orders Secured

20

All 9 M’0 8 Deliveries On Schedule

  • 11 jackups

Projects under construction progressing on schedule

  • 1 semi
  • 2 jackup upgrades/ repairs
  • 4 semi upgrades
  • 4 FPSO/ FSO conversions
  • 6 AHTS & 1 tug
slide-11
SLIDE 11

11

21

Fundam entals Rem ain I ntact

  • Ageing global rig fleet poses increasing performance

and safety concerns

  • Need to replenish depleting reserves prompts search

for new fields

  • Current oil prices appear above E&P spending

thresholds of big oil companies

22

Oil & Gas

slide-12
SLIDE 12

12

23

Refining Margins W eakened I n 3 Q’0 8

  • 3Q’08 refining margins

highly volatile

  • Global macro-economic

turbulence impacts refined products demand

5 1 0 1 5 2 0

4 - Ja n 2 5 - Ja n 1 5 - Feb 7 - Mar 2 8 - Mar 1 8 - Apr 9 - May 3 0 - May 2 0 - Jun 1 1 - Jul 1 - Aug 2 2 - Aug 1 2 - Sep 3 - Oct

US$ / bbl

2 0 0 8 Singapore GRM ( Com plex) * * Source: Merrill Lynch 24

Property

slide-13
SLIDE 13

13

25

Landm ark MBFC Draw s Healthy Pre-Com m itm ent

  • Premium office address
  • Pre-committed 66% of Ph 1 and 55% of Ph 2 ahead
  • f completion in 2010 and 2012 respectively
  • Over 80% of pre-commitments are long-term leases
  • f up to 12 years

26

A Sturdy K-REI T Portfolio

  • Broad tenancy mix across industry sectors
  • Portfolio 99.4% committed as at end-3Q’08
  • Rentals largely signed at previously low levels vs

higher current prime rent – portfolio rental reversions expected to be positive

  • Rights issue has strengthened its balance sheet –

aggregate leverage at 27.6%

  • Bank loans due only in 2011; no refinancing needs

next 2 years

slide-14
SLIDE 14

14

27

Local Hom es Sales I n 3 Q’0 8

  • Reflections at Keppel Bay maintains average selling

price of $2,000psf

  • 14 units sold
  • Projects strategically-located along New Downtown

MRT Line achieve good prices

  • Park Infinia and The Tresor – 28 units sold at average range of

$1,500 – $1,600psf

28

Hom es Dem and I n China & Vietnam Supported By Fundam entals

  • Young population
  • Urbanisation trend continues
  • Growing middle-class
  • Vietnam – Viet Kieus purchase potential

Home ownership aspirations and demographics underpin demand

slide-15
SLIDE 15

15

29

I nfrastructure

30

Expanding Green Business Platform s

  • Joint ventures with Tianjin partners targeting Tianjin Eco-City
  • Environmental infrastructure development, investment and operation
  • Energy and utilities-related development and O&M
  • Framework agreement with local Guangdong partner
  • Select from S$1.2b pipeline of water and solid waste treatment and

management projects

slide-16
SLIDE 16

16

31

Sponsor for W orld’s First Green Business Trust

I nfrastructure Business Trust I nfrastructure Business Trust

Keppel I ntegrated Engineering

( Sponsor & Key Strategic I nvestor)

Keppel I ntegrated Engineering

( Sponsor & Key Strategic I nvestor)

Senoko W TE Plant Senoko W TE Plant

Proposed trust to be listed on SGX

Keppel I nfrastructure Fund Managem ent

( Trustee-Manager)

Keppel I nfrastructure Fund Managem ent

( Trustee-Manager)

Tuas W TE Plant Ulu Pandan NEW ater Plant Potential assets for injection:

32

Our I nfrastructure Platform s

W ater

W aste Managem ent

Pow er

  • Doha North W astew ater Treatm ent and

W ater Reuse Facility

  • EPC: 2008-10 (1st recognition in 2009); O&M: 10 yrs
  • Ulu Pandan NEW ater Plant
  • Operational: 2007
  • Tuas W TE Plant
  • Operational: 2009
  • Qatar Solid W aste Managem ent Facility
  • EPC: 2007-09; O&M: 20 yrs
  • Keppel Merlim au Cogen Plant
  • Operational: 2007
slide-17
SLIDE 17

17

33

Staying On Course I n A Tougher Environm ent Outlook

34

Thank You Q&A

Keppel Corporation 9 M 2 0 0 8 Results

slide-18
SLIDE 18

18

35

Additional I nfo

36

Keppel Corporation

slide-19
SLIDE 19

19

37

Financial Highlights

S$ m 3 Q 2 0 0 8 % Change Revenue 3 ,2 1 7 2 4 EBI TDA 3 6 0 1 2 Operating Profit 3 2 5 1 2 Profit Before Tax 4 0 0 2 PATMI 2 7 3 1 0 3 Q 2 0 0 7 2 ,5 9 1 3 2 2 2 8 9 3 9 4 2 4 8

38

Total Singapore Overseas S$ m % % Offshore & Marine 5 ,5 8 1 1 2 I nfrastructure 1 ,7 4 2 7 2 Property 7 2 2 6 4 I nvestm ents 2 6 7 4 Total 8 ,0 7 1 2 9 9 M 2 0 0 8

7 1 % of total revenue cam e from overseas custom ers

Revenue by Custom ers

8 8 2 8 3 6 2 6 7 1

slide-20
SLIDE 20

20

39

S$ m 9 M 2 0 0 8 % % Change Offshore & Marine 6 6 6 2 8 Property 2 7 2 5 7 I nfrastructure 5 2 I nvestm ents 1 2 Total 9 4 9 1 0 0 9

EBI TDA by Segm ents

6 1 2 3 ( 2 1 ) 1 0 0

  • 9 M 2 0 0 7

% 5 9 5 1 2 3 7 3 2 4 2 6 1 2 8 7 4 1 0 0 3 1

40

Capital/ Gearing/ ROE

S$ m Shareholders' Funds Capital Em ployed Net Debt Net Gearing ROE 3 0 Sep 2 0 0 8 4 ,6 4 0 6 ,6 7 9 1 6 7 0 .0 3 x 2 1 .5 % * 3 1 Dec 2 0 0 7 5 ,2 0 5 7 ,0 3 5 6 3 4 0 .0 9 x 2 1 .8 %

* Annualised ROE

slide-21
SLIDE 21

21

41

Offshore & Marine

42

S$ m % Change Revenue 1 1 EBI TDA 2 3 Operating Profit 2 3 Profit Before Tax PATMI

Financial Highlights – Offshore & Marine

9 M 2 0 0 8 5 ,5 8 1 6 2 8 5 5 9 6 4 6 4 8 4 1 8 1 8 9 M 2 0 0 7 5 ,0 4 8 5 1 2 4 5 6 5 4 8 4 0 9

slide-22
SLIDE 22

22

43

S$ m % Change Revenue 3 2 EBI TDA 5 8 Operating Profit 6 2 Profit Before Tax PATMI

Financial Highlights – Offshore & Marine

3 Q 2 0 0 8 2 ,3 6 2 2 6 2 2 3 8 2 6 4 1 9 7 4 3 5 6 3 Q 2 0 0 7 1 ,7 8 9 1 6 6 1 4 7 1 8 5 1 2 6

44

Offshore & Marine Review

  • S$1.6b contracts secured in 3Q 2008:

2 Semis, 1 Derrick Pipelay Vessel, 1 FPSO Conversion, 1 FSO upgrade, 1 Dredger Lengthening, 1 JU repair, 1 Semi repair

  • Major contract completions in 3Q 2008:

1 Semi, 2 Semi upgrades, 4 JUs, 1 JU repair, 1 MOPU Outfitting, 1 FPSO conversion, 1 Ice Breaker, 2 AHTS, 3 Barges/ Pipe Racks, 2 CALM Buoys

slide-23
SLIDE 23

23

45

Offshore & Marine Orderbook

Clients

TOTAL as at 3 0 Sep 2 0 0 8

1 3 ,0 1 0

Balance Order S$ m For delivery in 2 0 1 0 5 Semis / 8 Jack Ups / 1 Derrick Pipelay Vessel / 4 AHTS / 1 PSV / 1 Drillship Outfitting / 1 Tug 6,328 Petrobras / Maersk / Diamond / Transocean / Aban / Jindal / Atwood / SBM / BW Offshore / Prosafe / Sevan / Gulfmark / Whitesea / Lukoil / Keppel Smit / City of New York / BUE Marine For delivery in 2 0 0 8 2 Semis / 3 Semi Upgrades/ Repairs / 2 Jack Ups / 3 FPSO Conversions / 1 FPSO Outfitting / 2 AHTS / 1 Ice Breaker / 2 Tugs / Sludge Vessel / 2 Barges 327 Maersk / Ensco / Floatel / Petrobras / Skeie / Rowan / Seadrill / Global Offshore / Hadi Hammam / Smit Int’l / Lewek / Greatship / Frontier Drilling / Keppel Smit For delivery in 2 0 0 9 6 Semis / 10 Jack Ups / 1 Jack Up Repair / 5 FPSO Conversions / 1 FSO / Pipe Racks / 7 AHTS / 3 PSVs / 2 Ice Class Standby/ Rescue Vessels / 1 Drillship Outfitting / 2 Tugs / 1 Tanker Barge / 1 Derrick Barge Upgrade / 1 Dredger Lengthening 2,500 Maersk / Ensco / GSF / QGP / Seadrill / Sinvest / Awilco / Scorpion / Mercator / Great Eastern / Petrovietnam / Perforadora Central / Transocean / Prosafe / BW Offshore / Bumi Armada / Lukoil / Agip KCO / Whitesea / Seaways / Hadi Hammam / Gulfmark / Greatship / Frontier Drilling / Keppel Smit / Batangas Bay Carriers / Petrobras / Boskalis For delivery in 2 0 1 1 / 2 0 1 2 6 Semis / 1 Jack Up / 2 Derrick Pipelay Vessels / 6 Tugs 3,855 Ensco / QGP / Seadrill / Scorpion / Rowan / Global Offshore / GSP / Keppel Smit

46

Property

slide-24
SLIDE 24

24

47

Financial Highlights - Property

NB: Property segment includes all property related businesses of KCL

S$ m % Change Revenue EBI TDA Operating Profit Profit Before Tax PATMI 9 M 2 0 0 8 7 2 2 2 5 7 2 4 9 2 6 8 1 1 6 ( 4 7 ) 9 M 2 0 0 7 1 ,3 5 0 3 2 4 3 1 4 3 4 1 1 5 9 ( 2 1 ) ( 2 1 ) ( 2 1 ) ( 2 7 )

48

Financial Highlights - Property

NB: Property segment includes all property related businesses of KCL

S$ m % Change Revenue EBI TDA Operating Profit Profit Before Tax PATMI 3 Q 2 0 0 8 2 1 1 7 8 7 5 8 7 3 7 3 Q 2 0 0 7 5 0 3 1 4 5 1 4 2 1 3 8 6 5 ( 5 8 ) ( 4 6 ) ( 4 7 ) ( 3 7 ) ( 4 3 )

slide-25
SLIDE 25

25

49

I nfrastructure

50

S$ m 9 M 2 0 0 8 % Change Revenue EBI TDA Operating Profit Profit Before Tax PATMI

Financial Highlights – I nfrastructure

1 7 5 1 0 0 > 5 0 0 6 8 1 2 8 1 ,7 4 2 5 2 2 8 5 2 4 1 9 M 2 0 0 7 6 3 3 2 6 2 3 1 1 8

slide-26
SLIDE 26

26

51

S$ m 3 Q 2 0 0 8 % Change Revenue EBI TDA Operating Profit Profit Before Tax PATMI

Financial Highlights – I nfrastructure

6 3 9 2 1 1 3 2 1 1 5 3 Q 2 0 0 7 2 8 6 9 ( 1 ) 8 4 1 2 3 1 3 3 NM 1 6 3 2 7 5

52

I nvestm ents

slide-27
SLIDE 27

27

53

Financial Highlights - I nvestm ents

S$ m % Change Revenue EBI TDA Operating Profit Profit Before Tax PATMI 9 M 2 0 0 8 2 6 1 2 1 2 2 3 4 1 9 3 9 M 2 0 0 7 4 2 1 2 1 1 2 1 5 1 7 2 ( 3 8 )

  • 9

9 1 2

54

Financial Highlights - I nvestm ents

S$ m % Change Revenue EBI TDA Operating Profit Profit Before Tax PATMI 3 Q 2 0 0 8 5 ( 1 ) ( 1 ) 2 8 2 4 3 Q 2 0 0 7 1 3 2 1 6 3 5 3 ( 6 2 ) NM NM ( 5 6 ) ( 5 5 )

slide-28
SLIDE 28

28

55

This release may contain forward-looking statements which are subject to risks and uncertainties that could cause actual results to differ materially from such statements. Such risks and uncertainties include industry and economic conditions, competition, and legal, governmental and regulatory changes. The forward-looking statements reflect the current views of Management on future trends and developments.