- Keppel Corporation (SGX:BN4)’s group profit of S$927m was in line with expectations at 101% of our and 102% of Bloomberg consensus FY22 forecasts. We were positively surprised by the strength in infra as its profit up 176% h-o-h and 726% y-o-y to S$127m in 2H22. This was due to higher power and gas sales in Singapore, contributions from Keppel Seghers’ projects abroad, as well as stronger contributions from an European renewable energy associated company, MET.
- - Read this at SGinvestors.io -
- In 2H22, Keppel Corp recognised S$292.8m of write-back for the rigs in asset co (not to be transferred to Sembcorp Marine (SGX:S51)). This was on the back of improving rig market conditions as global utilisation and day rates gradually recovered with increased drilling activities and limited new rigs supply, sustained by firm oil prices. We see further upside for more write-back if favourable industry conditions remain. In addition, the monetisation and recoverability of these legacy rigs/vendor notes could be accelerated.
- - Read this at SGinvestors.io -
- Reiterate ADD rating on Keppel Corp with a higher SOP-based target price of S$10.03 comprises:
- Read more at SGinvestors.io.
Keppel Corporation - Infrastructure & Asset Management The Key Pillars
KEPPEL CORPORATION LIMITED (SGX:BN4)
Above is the excerpt from research report by CGS-CIMB.
Clients of CGS-CIMB may access the full report in PDF @ https://www.itradecimb.com.sg/.
LIM Siew Khee CGS-CIMB Research | Izabella TAN CGS-CIMB Research | https://www.cgs-cimb.com 2023-02-03
Read also CGS-CIMB's most recent report:
2024-02-01 Keppel - Infrastructure Powering Recurring Income.
Previous report by CGS-CIMB:
2023-11-29 Keppel Corporation - Making Headway Into Europe.
Price targets by other brokers at Keppel Corp Target Prices.
Listing of research reports at Keppel Corp Analyst Reports.
Relevant links:
Keppel Corp Share Price History,
Keppel Corp Announcements,
Keppel Corp Dividend Payout Dates & Corporate Actions,
Keppel Corp News
