Keppel Corporation Ltd
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Keppel Corporation Ltd
Keppel Corporation Ltd., an illustrious titan in Singapore's business landscape, weaves its narrative through a diverse tapestry of operations. Founded in the shipyards over five decades ago, Keppel has impressively evolved, spreading its wings far beyond its maritime roots. Today, the company stands as a conglomerate juggernaut, effectively operating within four main spheres: offshore and marine, real estate, infrastructure, and investments. Each sector not only complements the other but also contributes robustly to the company's bottom line, demonstrating a strategic interplay of resources and expertise. Their real estate business, for example, thrives by developing and managing high-quality residential and commercial properties across Asia, ensuring a steady flow of revenue.
Aligned with modern economic demands, Keppel's infrastructure division plays a pivotal role in sustainable urban solutions, from data centers to waste management. Meanwhile, their offshore and marine arm continues to innovate and deliver services in the construction and repair of rigs and vessels, although it has faced headwinds due to fluctuating oil prices. The investments sector strategically allocates capital to synergistic pursuits, fostering long-term growth. Through this multifaceted approach, Keppel Corporation not only captures value across diverse sectors but also exemplifies a dynamic business model that adeptly navigates the complexities of the global market.
Keppel Corporation Ltd., an illustrious titan in Singapore's business landscape, weaves its narrative through a diverse tapestry of operations. Founded in the shipyards over five decades ago, Keppel has impressively evolved, spreading its wings far beyond its maritime roots. Today, the company stands as a conglomerate juggernaut, effectively operating within four main spheres: offshore and marine, real estate, infrastructure, and investments. Each sector not only complements the other but also contributes robustly to the company's bottom line, demonstrating a strategic interplay of resources and expertise. Their real estate business, for example, thrives by developing and managing high-quality residential and commercial properties across Asia, ensuring a steady flow of revenue.
Aligned with modern economic demands, Keppel's infrastructure division plays a pivotal role in sustainable urban solutions, from data centers to waste management. Meanwhile, their offshore and marine arm continues to innovate and deliver services in the construction and repair of rigs and vessels, although it has faced headwinds due to fluctuating oil prices. The investments sector strategically allocates capital to synergistic pursuits, fostering long-term growth. Through this multifaceted approach, Keppel Corporation not only captures value across diverse sectors but also exemplifies a dynamic business model that adeptly navigates the complexities of the global market.
Profitability: Keppel reported net profit of S$927 million for FY 2022, down 9% from last year, mainly due to lower earnings in Urban Development and provisions for US yard projects, despite stronger results from Asset Management and Energy & Environment.
Dividends: Total cash dividend for 2022 is S$0.33 per share, unchanged from 2021, with management reiterating their practice of paying 50–60% of earnings as dividends.
O&M Transformation: The proposed merger of Keppel Offshore & Marine with Sembcorp Marine is expected to unlock significant value (up to S$9.7 billion), with a special distribution in specie of 19.1 Sembcorp Marine shares for each Keppel share.
Recurring Income: Recurring income surged to S$560 million, now 67% of group earnings, reflecting Keppel’s shift toward steady income streams and away from lumpy project-based profits.
Asset Management Growth: Asset Management segment contributed S$311 million in net profit, with AUM reaching S$50 billion and a new target of S$200 billion set.
Energy & Environment: Segment recorded a strong turnaround, posting S$260 million net profit after a previous year’s loss, benefiting from higher electricity and gas sales.
Urban Development Headwinds: Urban Development profit fell due to weaker China property trading and lower gains from asset disposals, but management is cautiously optimistic about China’s recovery.
Connectivity: M1’s profit grew 32% to S$75 million, driven by enterprise and 5G business, though overall Connectivity segment profit fell due to lower gains from asset disposals.