18 April 2016

Keppel Corporation 1Q FY 2016 Report Card

Keppel Corporation posted their 1Q FY 2016 earning report in summary below. 1Q earnings decline 41% to $211 million from $360 million a year ago. Keppel said the higher contribution from its property division at 47% helped to partially offset lower profits from Offshore & Marine. Its Offshore & Marine division delivered three drilling jackups in 1Q, including one unit to Gulf Drilling International at the start of the year. It also delivered a lift boat and a Transformer platform.

  • Net Profit fall of 41% for 1Q 2016 to $211 million
  • Earnings Per Share was 11.6 cents, down 41% from 1Q 2015's 19.8 cents
  • Annualised Return on Equity of 7.1%
  • Economic Value Added decreased to $2 million from $122 million
  • Cash outflow of $306 million
  • Net gearing was 0.56x

Keppel Corporation faces a challenging environment on
  • Weaker global growth
  • Oil & gas sector remains challenging
  • Continued economic and political challenges in Brazil
  • Opportunities in Asia underpinned by urbanisation trends

With the challenges ahead in the Oil & gas sector, Keppel earnings will not be recovering soonest during this turmoil period. They had to stay focused on their multi-business strategy and ride on to their improved earnings from other businesses to offset the poor performance of Oil & gas sector. With their financial discipline and resilience built from the Group’s competencies in their chosen core businesses, they will remain poised for new opportunities to deliver sustainable value for their customers and shareholders in the long run.

No comments:

Post a Comment