Third quarter 2012 results (Part 5) – SembCorp Industries and Keppel Corporation

Comparison is made between Keppel Corporation and SembCorp Industries based on financial results for the quarter covering 1 July to 30 September 2012 (Third Quarter 2012).

The following table provides information on net profit attributable to shareholders and year-on-year change between current period in 2012 against corresponding period of 2011. It provides net asset value (NVA) information as at end of the quarter.

No dividend was proposed for all companies.

  Net Profits Y-o-Y Change NAV
SembCorp Marine $ 115.5 m – 48.1% $ 1.09
SembCorp Industries $ 181.2 m – 18.5% $ 2.40
Keppel Land $ 74.4 m + 28.5% $ 3.64
Keppel Corp $ 346 m – 14.7% $ 4.81

SembCorp Marine is a subsidiary of SembCorp Industries and Keppel Land is a subsidiary of Keppel Corporation. Their performance is also reported above.

SembCorp Industries’ performance was hurt by its marine business. Marine business profit of SembCorp Industries declined 48% due to poor performance of SembCorp Marine.

Property segment of business of Keppel Corporation (through Keppel Land) contributed 40% to net profit for nine months ended September. Offshore & Marine segment contributed 45% of net profit. It was reported that, “lower profit from Offshore & Marine Division was partly offset by higher profit from Property Division”.

  NAV Share price Price to Book
SembCorp Marine $ 1.09 $ 4.36 4.00
SembCorp Industries $ 2.40 $ 4.99 2.08
Keppel Land $ 3.64 $ 3.43 0.94
Keppel Corp $ 4.81 $ 10.15 2.11

Share prices were as at 9 November 2012.

Price-to-Book ratios for SembCorp Industries and Keppel Corporation were nearly the same (2.08 times vs 2.11 times). It is interesting to note that both counters had declined about 9% since two months ago before the third quarter results were known.

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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