KeppelCorp 4QFy2013

Revenue                                        = $3,598m
Operating Profit                            = $474m
Net Profit                                      = $332m
EPS                                                = 18.4 cents
NTA                                               =$5.32
Gearing                                           = 0.11X

Revenue by Segments
Offshore & Marine                        = $2,071m
Infrastructure                                 = $975m
Property                                         = $538m
Investments                                    = $14m

Net Profit by Segments
Offshore & Marine                         = $270m
Infrastructure                                   = ($111m)
Property                                           = $156m
Investments                                      = $17m

Obviously, Infrastructure is pulling down Keppelcorp down in 2013 by costs overrun in two major EPC projects.

Keppel Corp 1QFY2013

Revenue                                        = $2,758,735,000
Profit After Tax (shareholders)    = $356,984,000
EPS                                               = 18.4 cents
Annualized Return On Equity        = 13.9%
Economic Value Added                = $191m
Cash Outflow                                = $732m
Net Gearing                                   = 0.26x
NTA                                              = $5.27

PAT (Marine)                                = $207,784m
PAT (Infra)                                    = $54,521m
PAT (Property)                              = $79,753m
PAT (Oehers)                                 = $14,926m

Keppel

With the recent BP spill in the Gulf and the subsequent Mariner Energy owned platform that erupted into flames (without any oil spill though), this may leads one to think about the possibility of the US enacting a temporary ban of all offshore oil exploration in the US. If this is so, it will surely affect Keppel Corp, who is the world leading builder of oil rigs. I ponder on the likelihood recently.

But, I read the following statistic. There are about 3400 platforms operating in the Gulf according to the American Petroleum Institute. Together, they pump about one-thirds of American domestic oil. Given the American addiction on oil to lubricate and run the economy, I do not think a ban is possible, albeit a temporary one. Just witness how fast the BP spill is fading away from the daily news radar.

It is extremely difficult for a Singaporean company to be the leading player in the world in their core business. Keppel Corp is one of the rare few.

With the recent government recent cool down actions on property demand which causes a knee-jerk downward pressure on Keppel Land, and ultimately Keppel Corp share price, I thought it was an opportune to vest in Keppel Corp.
I vested at 8.74 and intend to hold it for quite a while. I miss out investing in Keppel Corp in 2009 when the price was much lower due to my indecisiveness.

I did not do a detailed analysis on the B/S, Income Statement nor CashFlow Statement as I do have some implicit faith in how Keppel Corp run their business. I need to revisit it sometimes.

I do not always do analysis before I vest. Sometimes quality blue chip, I just monitor the price for a long period of time and take action based on gut feel.