SGX Stocks and Warrants
Keppel - Best Quarterly Performance Ever
Warrants Highlight
Keppel - Best Quarterly Performance Ever
| Code | Name | Type | Expiry | Exercise Price |
| MV8W | KepCorp MBeCW130103 | Call | 03-Jan-13 | 10.909 |
| P1HW | KepCorp MBeCW120801 | Call | 01-Aug-12 | 11.50 |
| M8PW | KepCorp MBeCW130603 | Long Dated Call | 03-Jun-13 | 11.818 |
Keppel Corp announced its 1Q12 results yesterday. Net profit grew 141% year-on-year (YoY), driven by lumpy income recognition from Reflections at Keppel Bay units sold under the deferred payment scheme (DPS).
Quick look at the numbers
Revenue from the Offshore & Marine Division grew 66% YoY to $1.9bn, due to higher volume of work. However, pre-tax profit only increased 18% YoY due to lower margins in the contracts. The division won US$688mn orders in 1Q and its net order book stood at $8.4bn with deliveries extending to 2015. This does not include the LOI signed with Sete Brasil worth US$4.12bn. The management expects the deal to be formalised in the middle of this year.
Property Division revenue grew 248% YoY to $1.5bn, mainly due to the higher contribution from Reflections at Keppel Bay. Last quarter, over 90 residential units were sold, primary from The Luxurie in Sengkang. Despite the drop in home prices and sales volumes in Chinese major cities, Keppel continues to see sales from its township developments.
Revenue from the Infrastructure Division increased by 5% to $0.6bn but pre-tax profit fell 24% to $12mn due to lower contribution from Keppel Integrated Engineering and Keppel Energy.
Investors should note that there were two one-off gains this quarter, the $350mn income recognition from Reflections at Keppel Bay and $80mn investment income from equity investments sales.
Prospects
Despite the mixed global outlook, CEO Mr. Choo Chaiu Beng said that the prospects of Keppel’s key businesses remain good. He noted that major oil companies have budgeted an increase in their E&P spending for 2012 and there are new oil and gas finds in Brazil, East Africa and the North Sea. He also expects a sustained electricity demand in Singapore, while a moderate demand in Singapore and China properties.
However, CFO Mr. Loh Chin Hua mentioned that 1Q12 profits were “unlikely to be repeated in the next three quarters” as Keppel has delivered a significant bulk of Reflections at Keppel Bay units sold under DPS
Singapore Market Wrap
Making tiny steps up the 3,000 ladder
Yesterday the STI made another tiny upward progression from the 3,000 mark, increasing 0.3% day-on-day (dod) to 3,008.21 yesterday.
June Call STI 3000MBeCW120629 (P8BW) exercise level 3,000.*
June Put STI 2900MBePW120629 (P8CW) exercise level 2,900.*
Longer dated Call STI 3100MBeCW130131@ (PA7W) exercise level 3,100.*
Longer dated Put STI 2800MBePW130131@ (PA8W) exercise level 2,800.*
Keppel Corp's results surprises on upside
In an after market announcement yesterday, Keppel Corp posted a 1Q12 net profit of $751mn, a 141% from the previous year. The result was more than twice analysts' expected figure of $318.7mn. Earlier this month, the company had also won a US$4.2bn rig order from Brazil state-backed oil company Sete Brasil Participacoes.
Separately, its real estate unit Keppel Land had reported its results a day earlier, with 1Q net income rising 70% from a year earlier to $141.9mn.
Keppel Corp closed up 0.7% dod at $11.55 yesterday.
Call KepCorp MBeCW130103 (MV8W) exercise price $10.909.*
Call KepCorp MBeCW120801 (P1HW) exercise price $11.50.*
Long dated KepCorp MBeCW130603 (M8PW) exercise price $11.818.*
Overnight Market Wrap
Jobless Claims Worse than Expected
S&P500 fell 0.6% yesterday reversing its earlier gains. The Spanish bond auction went well, it managed to sell its maximum amount of 2-year and 10-year debt. The 10-year bond yields fell slightly to 5.743%
Jobless Claims in the week ended April 14 was at 386,000, higher than the Bloomberg analyst estimates of 370,000. Existing home sales were disappointing, falling 2.6% month-on-month.
Overnight Markets
| Indices | Last | Change |
|---|---|---|
| STI | 3008.21 |
0.3%  |
| HSI | 20995.01 |
1.0% |
| DJIA | 12964.10 |
-0.5%  |
| S&P 500 | 1376.92 |
-0.6% |
| Nasdaq | 3007.56 |
-0.8% |
Corporate News
Corporate Announcements
Keppel Corp announced a 1Q12 net profit of $751mn, a 141% from the previous year.
Results Announcement
Fri 27 Apr: DBS 1Q12
Mon 30 Apr: CapitaLand 1Q12, IndoFood 1Q12
Wed 9 May: UOB 1Q12, SembMarine 1Q12
Ex-Dividend Date
Wed 25 Apr: Keppel Corp ($0.26), SembMarine ($0.20)
Wed 26 Apr: STX OSV ($0.10)
Fri 27 Apr: OCBC ($0.15)
Mon 30 Apr: Cosco ($0.03), Golden Agri ($0.0184), SGX ($0.04)
Fri 4 May: Wilmar ($0.031), IndoFood Agri ($0.003)
Mon 7 May: UOB ($0.40), CapitaLand ($0.08)
Wed 9 May: DBS ($0.28)
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This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
