KepCorp

2Q2018 result:
looks like a good set of financial result.
EPS of 32.2 cents for 1H 2018 an increased of 38% , looks rather impressive.

Estimated whole year EPS of 64.4 cents. Current price of $6.96 would be having a PE of 10.9x. Looks quite attractive.

Interim dividend increased of 2 cents to 10 cents + a Special dividend of 5 cents. Total 15 cents.
Shareholders would be more than happy to see dividend increasing.

Short term wise, we may see a boost in share price given a good set of financial nos.

Not a call to buy or sell.

Please do your own due diligence.

Net profit was S$583m  EVA was S$275m

 Annualised ROE was 9.9%

 Free cash inflow of S$886m in 1H 2018, vs inflow of S$204m in 1H 2017

 Net gearing was 0.40x at end-Jun 2018 vs 0.46x at end-Dec 2017

 Declared interim dividend of 10.0 cents per share and special dividend per share of 5.0 cents for 1H 2018

1H 2018 net profit S$583m, up 38% yoy

Multiple Earnings Streams 

 Recurring income was S$130m or 22% of net profit for 1H 2018

Marine & Off-shore Net Loss of 40m.
Net loss due to lower work volume and associate contributions, and higher overseas taxes

 Lower overheads contributed to S$14m operating profit in 1H 2018

 1H 2018 new contracts of over S$1.2b including S$680m in 2Q 2018:

 Two new jackup orders from Borr Drilling as part of five-rig deal worth US$745m

 Two dual-fuel dredgers from Van Oord and a dual-fuel tanker from Sinanju

Net order book of S$4.6b as at end-Jun 2018

Property

1H 2018 net profit S$603m, up 214% yoy

Infrastructure 

1H 2018 net profit S$66m, up 16% yoy

Key Highlights  Keppel Infrastructure continues to deliver steady earnings

 Keppel Marina East Desalination Plant (KMEDP) close to 50% completed

 Hong Kong Integrated Waste Management Facility (HKIWMF) in design and engineering phase

 Recurring revenue of ~S$70m from Infrastructure Services in 1H 2018

 KMEDP and HKIWMF to boost recurring revenue when operational

Investments

1H 2018 net loss $46m.