Keppel Corporation – Annual Report 2011

Keppel Corporation reported the following financial performance for the year ended 31 December 2011.

2011 2010 Change
Revenue $10.1b $9.1b +10%
Profit to shareholders $1.5b $1.3b +14%
Earnings per share 83.8 ¢ 74.3 ¢ +12.8%
Return on equity (ROE) 21.6% 21.5% +0.1% point
Dividend per share 43 ¢ 38.2¢ +4.8¢
Dividend Payout % 51.3% 51.4% -0.1% point
Net gearing (times) 0.17 geared 0.02 net cash
Net Assets per share $4.14 $3.63 +$14%

Keppel Corporation performed better in 2011 when compared with 2010 on most accounts. Revenue increased 10.3 per cent to $10.1 billion over 2010.

Profit attributable to shareholders increased by 14 per cent to $1.5 billion. As a result, earnings per share increased to 83.8 cents from 74.3 cents previously. Return on Equity (ROE) was 21.6 per cent quite the same as 2010 (21.5 cents).

Final dividend for 2011 was proposed at 26.0 cents to be paid out on 9 May 2012 subject to approval at AGM of shareholders. Together with interim dividend already paid of 17.0 cents, total dividend for the whole year will be 43.0 cents. This is 4.8 cents more than 2010. Dividend payout is 51.3 per cent of earnings per share. Keppel Corp maintained similar dividend payout as in previous year

Keppel Corporation’s net cash position (net of borrowings) became net gearing of 0.17 times in 2011 from net cash in 2010. “Group net debt at 31 December 2011 was $1,857 million as compared to group net cash of $178 million at 31 December 2010. This was mainly due to operational cash outflow, capital expenditure and dividend payment.”

The Net asset per share as at 31 December 2011 increased 14 per cent to $4.14 from 2010. Referring to share price on 25 Feb 2011, it was $10.38 (adjusted after bonus shares). Today’s share price was $10.57. The share price did not move up very much over the one-year period. But it dipped to $7.02, the lowest level in past one year. The highest reached was $12.18 during the period.

In terms of prospect, “the Offshore & Marine Division secured a record $10 billion of new orders for the year (2011). The net order book stood at $9.4 billion with deliveries extending into 2015. “

Strategic Business Units

Keppel Corp has 4 major business units: Offshore & Marine, Infrastructure, Property and Investments. The contribution of each business unit to Keppel Corp’s bottom line (net profit):
Offshore & marine $1,064m
Infrastructure $82m
Property $300m
Investments $45m

Size of operations of each unit using revenue figures:
Offshore & marine $5,706m (56.5%)
Infrastructure $2,863m (28.4%)
Property $1,467m (14.6%)
Investments $46m (0.5%)

Major Shareholder
Temasek Holdings owns 20.74% of Keppel Corp.

Copyright © 2012, limkimtong for Living Investment

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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