Scope of Briefing Group Financial Highlights Business Review & - - PDF document

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Scope of Briefing Group Financial Highlights Business Review & - - PDF document

Nov 25, 2023 306 likes •517 views

1Q 2004 Results Announcement 27 April, 2004 1 Scope of Briefing Group Financial Highlights Business Review & Outlook 2 Group Financial Highlights 1Q 2004 Performance PATMI of S$132m, up 40% from 1Q 2003 EPS of 17.0cts, up

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SLIDE 1

1

1Q 2004 Results Announcement

27 April, 2004

2

Scope of Briefing

Group Financial Highlights Business Review & Outlook

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SLIDE 2

Group Financial Highlights

4

1Q 2004 Performance

  • PATMI of S$132m, up 40% from 1Q 2003
  • EPS of 17.0cts, up 39% from 1Q 2003
  • Annualised ROE hit 14.2%
  • Free cash flow of S$76m
  • Gearing dropped to 0.72x
  • Announced divestment of S$155m of non-core assets
  • EVA improved by S$57m over 1Q 2003
  • New orders secured of S$905m for Offshore & Marine

division and S$80m for Infrastructure division

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SLIDE 3

5

Earnings & EPS Growth

(S$m) 1Q 2003 1Q 2004 % Change Turnover 1,744 896 (49) EBITDA 175 147 (16) Operating Profit 121 109 (10) Profit Before Tax 132 148 12 PATMI 94 132 40 EPS (cents) 12.2 17.0 39

Strong PATMI and EPS growth

PATMI (excl. deferred tax adjustment) 94 118 26

6

Capital/Gearing/ROE

(S$m) Shareholders' Funds Capital Employed Net Debt Net Gearing ROE

Continued improvement in ROE & Gearing

* Annualised ROE

31 Mar 2004 31 Dec 2003 3,024 2,890 4,109 3,959 2,959 3,040 0.72x 0.77x 14.2%* 14.1%

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Free Cash Flow

1Q 2004 S$m Cash flow from operating activities Operating profit 109 Depreciation & amortisation 27 Working capital changes (98) Net cash from operating activities 30 Net cash from investing activities 46 Free Cash Flow 76 Operational capex (1) Proceeds from divestments 38 Interest & tax paid (8) Dividend income 9

8

(S$m) 1Q 2003 % 1Q 2004 % % Change Offshore & Marine 393 23 547 61 39 Property 170 10 139 15 (18) Infrastructure 183 10 187 21 2 Sub Total 746 43 873 97 17 Investments 998 57 23 3 (98) Total 1,744 100 896 100 (49)

Turnover by Segments

Core businesses turnover rose. Deconsolidation

  • f SPC reduced Investments turnover.
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Total Singapore Overseas S$m % % Offshore & Marine 547 11 89 Infrastructure 187 41 59 Property 139 69 31 Sub total 873 26 74 Investments 23 52 48 Total 896 27 73 1Q 2004

74% of core businesses turnover came from overseas customers

Turnover by Customers

10

(S$m) 1Q 2003 % 1Q 2004 % % Change Offshore & Marine 65 37 82 56 26 Property 44 25 37 25 (16) Infrastructure 33 19 27 18 (18) Sub Total 142 81 146 99 3 Investments 33 19 1 1 (97) Total 175 100 147 100 (16)

EBITDA by Segments

Cashflow of core businesses continues to improve

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PATMI By Segments

20 14 19 19 15 19 22 62 36 50 100 150 1Q 2003 1Q 2004

S$m

S$94m 40% growth Offshore & Marine Infrastructure Property Investments S$132m Deferred Tax Adjustments 26% growth

12

20 40 60 80 100 120 Offshore & Marine 36 62 Property 20 22 Infrastructure 19 15 Total 75 112 1Q 2003 1Q 2004

Core Businesses’ PATMI Growth

S$m

49% growth S$75m S$112m

Deferred Tax Adjustments*

  • 13

32% growth

* 1Q 2004 PATMI includes deferred tax adjustments of S$10m in Offshore & Marine and S$3m in Property

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20 19 19 36

Our Profit Mix

25 15 20 72

1Q 2004 PATMI (S$m)

Offshore & Marine 55% Infrastructure 11% Property 19% Investments 15%

1Q 2003 PATMI (S$m)

Offshore & Marine 39% Infrastructure 20% Property 21% Investments 20%

Note: 1Q 2004 PATMI includes deferred tax adjustments of S$10m in Offshore & Marine, S$3m in Property and S$1m in Investments 14

5-year PATMI & EPS

1H 2H

PATMI (S$m) EPS (Cents)

108 129 83 89 56 132 94 82 98 100 39 98 81 105 93

'00 '01 '02 '03 '04 237 267 356

13.9 16.8 10.9 11.5 7.3 17.0 10.7 12.2 13.1 12.7 5.1 10.5 12.6 12 13.6

'00 '01 '02 '03 '04

30.7 34.8 46.3

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

395 51.1

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

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SLIDE 8

Business Review & Outlook

16

Strong PATMI growth

(S$m) 1Q 2003 1Q 2004 % Change Turnover 393 547 39 EBITDA 65 82 26 Operating Profit 49 68 39 Profit Before Tax 48 70 46 PATMI 36 72 100

Financial Highlights – Offshore & Marine

PATMI (excl. deferred tax adjustments) 36 62 72

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Offshore & Marine Review

S$905m contracts secured in 1Q 2004:

3 jack-ups, 6 AHTs, 4 Tugs, integration/commissioning of 1 FPSO, 1 jack-up upgrade, 1 semi upgrade, 1 floating dock upgrade, 1 FPSO conversion & 1 derrick barge upgrade

Major contract completions in 1Q 2004:

1 jack-up, 1 FPSO topsides, 2 FPSO conversions, 1 jack-up upgrade, 4 tugs & 1 AHT

S$22m net gain from the disposal of ENSCO 102 jack-

up

18

Offshore & Marine Contracts Secured

905 2,188 670 1,430 1,210 2000 2001 2002 2003 1Q '04

S$m

Offshore fundamentals remain strong

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SLIDE 10

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Offshore & Marine Orderbook

Clients For delivery in 2004 1 Jack-up Upgrade / 1 Spar Platform / 1 Processing Platform 38 Ensco / Pride / Petrovietnam

TOTAL as at 31 Mar 2004

S$2.5b

2 FPSO Conversions / 2 Semi Upgrades 51 Halliburton / Teekay / Diamond Offshore / Stena Offshore For delivery in 2005 2 Jack-ups / 1 Semi Modification / 2 PSVs / 9 AHTS 649 BP / NDC / Boeing / Maersk / Gulfmark Offshore / Hadi Hammam / Bourbon / Smit Contract Value Balance Order 161 99 8 AHTS / 4 Tugs / 1 Support Vessel Refit / 1 Floating Dock Upgrade / 1 Derrick Barge Upgrade/ Compressor Modules 99 Delba Maritima / Pacific Richfield / CH Offshore / Hadi Hammam / Keppel Smit / RFA / BP / Saipem / Dresser Rand 266 807 For delivery in 2007 1 Semi 1,073 Petrobras 1,073

S$3.0b

S$m For delivery in 2006 3 Jack-ups / 1 AHTS 614 Skeie / Ensco / Odfjell / Bourbon 614 20

Offshore & Marine Outlook

Offshore / FPSO Conversions

Oil prices expected to remain firm Worldwide E&P spending forecast to rise by 6% in 2004 Favourable market conditions in jack-up market Active enquiries for FPSO conversions

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21

Offshore & Marine Outlook

Shiprepair / Shipbuilding

High level of offshore activities resulted in greater

demand for AHTs/supply vessels; orders picked up in 1Q 2004

Shiprepair activities have risen slightly in 1Q 2004

22

Contracts currently being pursued:

Offshore & Marine Job Prospects

Products/Services Estimated Value Semi-submersibles (Newbuildings/Repairs/Upgrading) 1.5 Jack-ups (Newbuildings/Repairs/Upgrading) 1.9 FPSOs (Conversions/Upgrades) 0.9 Shipbuilding (AHTS/Tugs/Barges) 0.7 Total 5.5 Platforms/TLPs/Topsides/Turrets etc. 0.5 S$b

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Financial Highlights - Property

NB: Property Segment includes all property related businesses of KCL

(S$m) 1Q 2003 1Q 2004 % Change Turnover 170 139 (18) EBITDA 44 37 (16) Operating Profit 40 34 (15) Profit Before Tax 38 39 3 PATMI 20 25 25 PATMI (excl. deferred tax adjustments) 20 22 10

24

Property Review & Outlook

Overseas

  • Focus on developing residential projects and townships in countries

that experience high economic growth

  • First block (85 units) of 8 Park Avenue fully sold
  • Residential launches in Shanghai, Beijing, Chengdu, Bangkok and

Ho Chi Minh City in 2004

Singapore

  • Several residential launches planned for 2004
  • Continue efforts to divest investment properties
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(S$m) 1Q 2003 1Q 2004 % Change Turnover 183 187 2 EBITDA 33 27 (18) Operating Profit 14 11 (21) Profit Before Tax 15 15

  • PATMI

19 15 (21)

Financial Highlights – Infrastructure

Intensifying efforts to grow Infrastructure division

26

Utilities Engineering : Review & Outlook

Contribution expected from Jawa Power from 2005 S$50m new contracts secured in 1Q 2004 S$720m order book for delivery between 2004 and

2009

Pursuing S$900m new contracts

Infrastructure

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27

Network Engineering : Review & Outlook

Expect modest improvement in market conditions S$30m new contracts secured in 1Q 2004 Pursuing S$70m new contracts

Infrastructure

28

Infrastructure Order Book & Job Prospects

S$m Utilities Engineering 720 Network Engineering 45 Total 765 900 70 970 Job Prospects Order Book

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Financial Highlights - Investments

(S$m) 1Q 2003 1Q 2004 % Change Turnover 998 23 (98) EBITDA 33 1 (97) Operating Profit 18 (4) (122) Profit Before Tax 31 24 (23) PATMI 19 20 5

PATMI maintained despite partial divestment of SPC

PATMI (excl. deferred tax adjustments) 19 19

  • 30

Divestments

Sale of the entire shipping fleet Will continue to extract maximum value from

divestments

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Financial Targets for 2004/05

Sustained growth in core businesses EPS CAGR of 8-12% through 2005 Achieve ROE of 12-15% Continued EVA improvement Maintain dividend payout ratio of 30-35% Continued investment in core businesses and divestment of non-core businesses

32

Keppel Corporation 1Q 2004 Results

Thank You Q&A

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33

Additional Info

34

(S$m) 1Q 2003 % 1Q 2004 % % Change Offshore & Marine 36 39 72 55 100 Property 20 21 25 19 25 Infrastructure 19 20 15 11 (21) Sub Total 75 80 112 85 49 Investments 19 20 20 15 5 Total* 94 100 132 100 40

PATMI by Segments

Offshore & Marine contributed most to core businesses’ PATMI increase

* 1Q 2004 PATMI includes deferred tax adjustments of S$10m in Offshore & Marine, S$3m in Property and S$1m in Investments

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5-year ROE

14.2%

14.1% 13.4% 10.1% 8.6%

2000 2001 2002 2003 1Q 2004*

* Annualised ROE 36

Infrastructure

Utilities Engineering : Financial Highlights

(S$m) 1Q 2003 1Q 2004 % Change Turnover 146 159 9 EBITDA 33 25 (24) Operating Profit 15 10 (33) Profit Before Tax 16 15 (6) PATMI 21 14 (33)

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Infrastructure

Network Engineering : Financial Highlights

(S$m) 1Q 2003 1Q 2004 % Change Turnover 37 28 (24) EBITDA

  • 2

NM Operating Profit (1) 1 NM Profit Before Tax (1)

  • NM

PATMI (2) 1 NM