Keppel Corp Share Price and Stock Investing Info | Focus on Singapore Stock Market Today

What is Keppel Corp?

Keppel Corporation (Keppel Corp) is a Singapore-based infrastructure company that covers multiple industries with an overall goal of achieving sustainable urbanization. Its operations contribute to urbanization through a problem-solving approach that emphasizes efficiency and sustainability.

Keppel Corp history and operations

Keppel was launched in 1968 as a ship repair company, but it soon diversified into multiple businesses. (Source: Keppel Corp). The company’s businesses spans the following industries:

• Energy – The company generates and supports the harvesting of safer and cleaner energy for cities and ships.
• Urban development – The company contributes to Singapore’s beauty by developing sustainable and vibrant integrated commercial and residential spaces. The company has so far developed roughly 1.7 million square feet of commercial real estate and 44,000 homes in the city-state.
• Marine – Shipbuilding is still at the core of the company’s business ventures. Keppel makes a variety of water vessels that include icebreakers, pipelay vessels, tug boats, and dredgers, among others.
• Asset management- The company offers listed private funds and REITs through subsidiaries such as Keppel Infrastructure Fund Management Pte Ltd and Keppel REIT Management Limited.
• Connectivity- Keppel is also facilitating connectivity and access to goods, services, and information. The company has invested in telecommunications, urban logistics, and data centers.
• Environment- The Singapore-based firm also has water and wastewater treatment operations in the city state. It also operates technology and facilities for transforming waste to energy.

Keppel Corp’s management

Keppel has a robust management team that ensures the company is in the right direction while operating at optimal capacity. Here is a list of the company’s executives.

• Loh Chin Hua- CEO
• Chan Hon Chew- Chief financial officer.
• Chris Ong Leng Yeow- Keppel Renewable Energy’s managing director and CEO of Keppel Offshore & Marine.
• Christina Tan Hua Mui- CEO of Keppel Capital.
• Ong Tiong Guan CEO of Keppel infrastructure.
• Manjot Singh Mann- M1 CEO.
• Thomas Pang Thieng Hwi- head of Keppel Telecommunications & Transportation.
• Tan Swee Yiow- CEO of Keppel Land.
• Cindy Lim-Managing Director of Keppel Urban Solutions.
• Jason Chin- head of group information tehnology.
• Lynn Koh- group treasury.
• Kenny Mok- head of Group Risk & Compliance.
• Yeo Meng Hin- head of human resources.
• Tok Soo Hwa- head of Group Control & Accounts
• Martin Ling- general manager of cyber security.
• Sepalika Kulasekera- head auditor.

Keppel share price and performance

The company’s shares are traded on the SGX under the ticker BN4.SI. Keppel share price closed the latest trading session at 5.09 SGD with a market capitalization of 9.251 billion SGD. Its 52-week low is 4.08 SGD, while its 5-week high is 6.78 SGD. Keppel share price traded above 6.7 SGD in mid-February 2020 before the global pandemic’s weight pushed down the share price to a low of 5.20 SGD by mid-March. The stock enjoyed some recovery, which sent its price up above 6 GSD by June, but then it plummeted after that, reaching the 52-week low towards the end of September. (Source: Yahoo Finance).

Keppel’s overall performance in the past 12 months has been bearish. Its diversification strategy may have been favorable pre-COVID19, but the pandemic and the resulting economic downturn had a severe effect on some of its businesses. For example, the company’s offshore an marine segment have been struggling for a while. Fortunately, the company quickly shifted its resources to better performing segments such as its renewable energy business to provide some buoyancy.

Keppel dividend policy

Over the years, Keppel Corp has demonstrated a strong commitment to maintaining a healthy relationship with investors by providing value through dividends. The company maintained its dividend payouts since 1989. The dividend payouts have been growing consistently ever since then. For example, it paid out a dividend of 23.7 cents per share in 2010. It was 26.0 cents per share in 2011 and 30 cents per share in 2013. However, it peaked at 36 cents per share in 2014. (Source: Keppel Corp).

Keppel’s dividend payout ranged between 12 cents per share to 15 cents per share from 2015 to 2019. The company announced an interim dividend of 3 cents per share in August 2020 and a 7 cents per share final dividend to be paid out on April 29^th, 2021.

The company’s dividend payout, especially in the last five years does not really paint a reassuring picture for investors. Investors that bought the stock in 2020 would have lost roughly 34% percent of their investment due to share price decline. An attractive stock gains value or registers favorable dividend growth without losing too much value from its share price. Unfortunately, that has not been the case for Keppel share price or its dividend performance. (Source: Yahoo Finance).

Keppel outlook

Keppel delivered a strong Q1 2020 despite the global pandemic because most of its businesses provide essential services. Its net profit for the quarter was 160 million SGD, which was an underperformance on a YOY basis compared to the 203 million SGD it earned in Q1 2019. Some of the key areas that yielded strong results include its power and gas business, which are part of its essential services portfolio.

Some of the other segments that contributed to the strong earnings include its property trading businesses, as well as its offshore and marine projects.

Keppel’s performance in 2020 is important because it highlights its performance to weather challenges and still attains positive growth. It, however, does not guarantee future performance. The company’s ability to deliver strong returns and earnings depends on various factors. Its focus on key industries and unique approach. For example, its focus on sustainable energy solutions is a great step in the company’s right direction, especially with the growing demand for renewable energy.

The company’s connectivity segment is also poised to continue delivering strong growth, especially as data consumption continues to grow rapidly. Doubling down on the above areas could deliver more value for the company and the investors in the form of improved share performance and better dividend payouts.