Keppel Corporation – Annual Report 2009

The following key indicators were extracted from the annual report of Keppel Corporation for the year ended 31 December 2009.

 

 

2009

Change over 2008

Revenue

$12.2b

+4%

Profit to shareholders

$1.6b

+48%

Earnings per share

$1.02

+$0.33

Return on equity (ROE)

23.9%

+1.5% points

Dividend per share

61¢

+26¢

Dividend yield

7.4%

-0.68% point

Net Cash to Equity (times)

0.14

+0.1

Net Tangible Assets per share

$3.70

+$0.86

Price of share as at 31 Dec

$8.23

+$3.90

 

Note: Net cash to equity ratio is (Cash – Borrowings)/Capital Employed

 

Keppel Corporation operates in 3 key business segments: Offshore & Marine, Infrastructure and Property. Property aspect of business comes from Keppel Land, another listed public company on the Singapore Exchange.

 

Temasek Holdings is the major shareholder of Keppel Corporation and owned 21.62 per cent of it.

 

Keppel Corporation performed significantly better in 2009 when compared with 2008. Profit attributable to shareholders increased by 48 per cent to $1.6 billion (inclusive of exceptional items). As a result, earnings per share increased to $1.02 from 69 cents previously. Return on Equity was 23.9 per cent.

 

Dividend for 2009 will include 38 cents as ordinary dividend and 23 cents as special dividend in specie. The dividend in specie will be given to shareholders in the form of units in K-Green Trust. Keppel Corporation intends to list K-Green Trust on the Singapore Exchange comprising Senoko Waste-to-Energy Plant, Tuas Waste-to-Energy Plant and Ulu Pandan NEWater Plant.

Keppel Corporation’s net cash after deducting borrowings was $1.177 billion at 31 December 2009, an increase of $902 million from $275 million at 31 December 2008. This was mainly due to disposal of Keppel Corporation’s stake in Singapore Petroleum Corporation (SPC), the rights issues of Keppel Land and K-REIT Asia, and operational cash inflow.

 

The Net tangible asset per share as at 31 December 2009 was $3.70. The Price to Book ratio was 2.22 based on $8.23 traded on that date. The last traded price of Keppel Corporation was $9.40 on 9 April 2010. It has gone up substantially since the end of last year.

 

Copyright © 2010, the author known as LKT in Singapore.

 

The material presented is intended to be general and written in layman’s language as much as it is possible. The author shall not be liable for any direct or consequential loss arising from any use of material written. Please seek professional advice from your financial advisor or financial institutions on material written covering financial matters.

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