FY 2005 Results Announcement 26 January, 2006 1 Scope of Briefing � Address by Executive Chairman � Group Financial Highlights � Business Review & Outlook 2
Address By Executive Chairman 3 Another Record Year � Grew earnings � EPS up 20% to 72.1 cents � Increased shareholder value � EVA improved by S$164m to S$199m � ROE up from 15.5% to 16.4% � Returning value to shareholders � Distribution of 46 cts/share, up 15% 4
Building Stronger Businesses Expanding Strengthening Increasing Footprint Core Competencies Asset Yields • Strategic tie-ups / • Penetrate new • Actively managing R&D efforts markets capacity • Moving up the • Augment existing • Working assets value-chain network harder 5 Forging Ahead � O & M : Building the world’s rig fleet � Oil & Gas : Filling energy needs � Property : Meeting Asia’s housing demand � Infrastructure : Making inroads 6
Happy Lunar New Year ! 7 Group Financial Highlights
2005 Financial Achievements 21% to S$564m PATMI 20% to 72.1cts EPS from 40 cts/share to 46 cts/share Distribution from 15.5% to 16.4% ROE S$164m to S$199m EVA 19% to S$694m Free cash flow from 0.64x to 0.47x Net gearing 9 Financial Highlights S$m 2004 2005 % Change Revenue 5,688 3,963 43.5 EBITDA 599 589 1.7 Operating Profit 467 409 14.2 Profit Before Tax 826 645 28.1 PATMI 564 465 21.3 59.9 EPS (cents) 72.1 20.4 10
Revenue by Segments S$m 2005 % % % Change 2004 Offshore & Marine 4,112 72 2,428 61 69 Property 847 15 19 711 18 Infrastructure 610 11 (16) 729 18 Investments 119 2 25 95 3 Total 5,688 100 44 3,963 100 11 Pretax Profits by Segments S$m 2005 % 2004 % % Change Offshore & Marine 350 42 247 38 42 Property 222 27 194 30 14 Infrastructure (30) (4) 26 4 NM Investments 284 35 178 28 60 Total 826 100 645 100 28 12
PATMI by Segments S$m % % Change 2005 2004 % 239 42 Offshore & Marine 191 41 25 Property 118 21 118 26 - Infrastructure (34) (6) 20 4 NM Investments 136 29 241 43 77 Total 564 100 465 100 21 13 Consistent Earnings Growth PATMI (S$m) EPS (Cents) 72.1 564 59.9 18.7 465 146 51.0 394 14.8 46.3 356 115 17.9 141 34.8 26.1 14.5 267 22.5 202 113 174 16.6 17.1 13.7 128 133 106 24.9 23.8 192 182 18.2 18.4 16.9 139 144 131 '01 '02 '03 '04 '05 '01 '02 '03 '04 '05 1H 2H 14
Continued EVA Growth S$m ‘02 ‘03 ‘04 ‘05 ‘01 199 35 +$164m 0 +$160m (125) +$170m (295) +$370m 15 (665) Increasing ROE & Dividend Capital Capital Capital Capital Capital distribution distribution distribution distribution distribution 23cts/share 50cts/share 12cts/share 18cts/share 20cts/share Plus Plus 23 cts Plus 20 cts Plus Plus 19 cts cts 18 16.4% 16 cts 15.5% 14.1% 13.4% 10.1% 2001 2002 2003 2004 2005 ROE Dividend 16
Healthy Free Cash Flow 2005 S$m Operating profit 467 Depreciation & other non-cash items 139 606 Working capital changes 904 Interest & tax paid (40) Net cash from operating activities 1,470 Investments & capex (1,025) Divestments & dividend income 249 Net cash used in investing activities (776) Free Cash Flow 694 Dividends paid 324 17 Business Review & Outlook
Offshore & Marine 19 An Exceptional Year S$m Contracts Secured 6,540 3,060 2,190 1,430 670 2001 2002 2003 2004 2005 20
Building Earnings Visibility Beyond 2008 S$b Net Orderbook 7.2 3.4 1.9 2003 2004 2005 21 A Good Spread Contracts Secured in 2005 19% 20% 24% 59% 22% 56% Jackups Semis Others USA Europe Rest of the World Healthy Product Mix Broad Customer Base 22
Growing Orderbook Into 2008-09 12 Semisubmersibles 11 1 Jackups 10 9 3 8 Units 7 6 5 10 4 7 3 6 2 1 1 1 0 2006 2007 2008 2009 Delivery Period 23 Actively Managing Yard Capacity � Efforts to maximise capacity in Singapore � Nantong Shipyard, China constructing specialised vessels � Batangas Shipyard, Philippines enhancing facilities for offshore fabrication � Focusing on higher-value work � All yards well-placed to do more 24
Rig Order Cycle Not Over 280 Units Semisubmersibles 54 Jackups 240 223 200 160 48 120 93 80 26 40 22 17 3 5 28 19 20 8 8 0 >30 Age 0-5 6-10 11-15 16-20 21-25 26-30 25 Source: Industry reports Demand Drivers Remain Strong � High oil & gas prices, need to replace reserves drive E&P activities � Multi-year contracts at favourable day rates support newbuilds � Operators tendering for multi-year drilling programs starting 2007/08; rig demand visibility lengthens 26
Oil & Gas 27 Growing Upstream Assets � Vietnam (Blocks 102 and 106) � Increased interest to 20% � Cambodia (Block B) � Secured 30% stake � Indonesia (Sampang PSC) � Attained 19.6% interest in Jeruk � Oyong starting production in 2006 Managing portfolio to improve returns 28
Refining Margins Remain Healthy Singapore GRM (Complex) US$/barrel 11 10 9 8 7 6 5 4 3 2 1 0 1Q'02 4Q'02 3Q'03 2Q'04 1Q'05 4Q'05 29 Source: Merrill Lynch Underpinned By Asian Demand � Growing Asian economies continue to fuel demand � Refining capacity remains tight; project delays defer new supply schedules Asia & Middle East - Demand Growth vs. Capacity Utilisation 5% 110% 100% 4% 90% 80% 3% 70% 2% 60% 2006 2007 2008 2009 2010 Demand Growth (%) - LHS Utilisation (%) - RHS 30 Source: Merrill Lynch
Property 31 Expanding Presence In New Downtown Business and Financial Centre One Raffles Quay MRT � Near 70% pre- commitment � Blue-chip anchor tenants � ABN Amro � Deutsche Bank BFC site � UBS MRT � Ernst & Young � Societe Generale � Secured Phase 1 � Barclays � Purchased 8-year option for remaining phase 32
A Tight Domestic Office Market Known New Supply � Limited new supply million sq ft 2.1 � Redevelopments reduce current supply 1.4 10-15 yr average annual take up � Growth of financial Pre-committed services industry space at ORQ 0.7 � Attractive rentals within Asia 0.0 2006 2007 2008 2009 2010 Improving rentals and occupancy 33 Source: CB Richard Ellis Generating More Fee-Based Income � Setting up K-REIT Asia � 4 prime office buildings worth S$630m � To be launched in 1Q’06 Prudential Keppel � Fund management initiatives Tower Towers � Asia No.1 Property Fund closed with US$243m equity � 2 nd closing of Alpha Core Plus Real Estate Fund in early 2006 � Total Assets Under Management Bugis Junction GE Tower of US$1.4b expected Towers 34
Units Sold More Than Doubled Overseas Residential Sales Units 2,700 2,800 2,100 1,400 1,100 700 0 2004 2005 35 Positive Residential Outlook � Domestic private home prices on uptrend � Rose 7 consecutive quarters, up 3.8% in 2005 * � Strength in high end segment to filter to broader market � Strong economy, better job market and more foreign buyers � Strong fundamentals in overseas markets � Economic growth � Increasing aspiration for home ownership � Favourable demographic trends * Source: Urban Redevelopment Authority 36
Rolling Out Township Projects Growing A Sustainable Earnings Stream 2006 & Beyond 2003 2004 2005 • Embarked on • Licence for • The Botanica • Launching Cakung & township 74-ha Saigon (Ph 1) sold out The Botanica (Ph 2) development Sports City in 8 mths • Saigon Sports City and Wuxi in pipeline • Acquired 42-ha • Acquired 270- • Acquired 35-ha • Pursuing in Chengdu ha in Jakarta in Wuxi opportunities in (The Botanica) (Cakung) growth cities Infrastructure 38
Building Sustainable Long-Term Earnings NEWater Plant Cogen Plant Incineration Plant 2008 2009 2010 2007 2006 Exploring opportunities in growth markets 39 Prospects Double-digit average annual growth rate for next 2 years 40
Keppel Corporation FY 2005 Results Thank You Q&A 41 Additional Info 42
Keppel Corporation 43 Financial Highlights – Keppel Corp S$m 4Q 2005 % Change 4Q 2004 Revenue 1,756 1,168 50 EBITDA 140 128 9 Operating Profit 92 37 67 Profit Before Tax 221 169 31 PATMI 146 115 27 44
Revenue by Customers 2005 Total Overseas Singapore S$m % % 96 Offshore & Marine 4,112 4 47 Property 847 53 Infrastructure 610 52 48 57 Investments 119 43 83 Total 5,688 17 83% of total revenue came from overseas customers 45 EBITDA by Segments S$m 2004 2005 % % % Change Offshore & Marine 377 306 52 23 63 Property 215 36 194 33 11 NM Infrastructure (16) (3) 72 12 4 35 Investments 23 17 3 Total 599 100 589 100 2 46
Capital/Gearing/ROE 31 Dec 2004 S$m 31 Dec 2005 3,646 3,090 Shareholders' Funds 4,935 4,256 Capital Employed Net Debt 2,320 2,726 Net Gearing 0.47x 0.64x ROE 16.4% 15.5% 47 Offshore & Marine 48
Financial Highlights – Offshore & Marine S$m 2005 2004 % Change 4,112 Revenue 2,428 69 377 EBITDA 306 23 318 Operating Profit 246 29 350 Profit Before Tax 247 42 239 PATMI 191 25 49 Financial Highlights – Offshore & Marine S$m % Change 4Q 2005 4Q 2004 1,261 800 58 Revenue 92 91 EBITDA 1 74 3 Operating Profit 76 100 35 74 Profit Before Tax 68 36 50 PATMI 50
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