Compared to 1H 2018, the six months of 2019 saw improved performance at Keppel Offshore & Marine which returned to profitability, higher contributions from M1 following the consolidation of its results with the Group, as well as strong earnings growth at Keppel Infrastructure and Keppel Capital.
The Group’s 1H 2019 revenue of S$3,315 million, was 11% higher than the S$2,993 million achieved in 1H 2018, mainly due to higher sales contributions from Keppel Infrastructure, Keppel Capital and M1, offset by lower revenues from Keppel O&M and Keppel Land.
For the first six months of 2019, the Group achieved an annualised return on equity of 6.3%. Net gearing rose to 0.82x as at 30 June 2019, compared to 0.48x as at 31 December 2018, following the privatisation of M1 and Keppel Telecommunications & Transportation, as well as due to higher working capital requirements, the payment of the final cash dividend for FY 2018 and the recognition of lease liabilities. Free cash outflow was S$614 million in 1H 2019 compared to an inflow of S$873 million in 1H 2018 due to higher working capital requirements and lower proceeds from en-bloc sales.
The Group’s net profit for 2Q 2019 was S$153 million, 39% lower than the S$249 million for 2Q 2018, in the absence of en-bloc sales of property projects, partly offset by stronger performance from Keppel Offshore & Marine, Keppel Infrastructure and Keppel Capital. Group revenue of S$1,784 million was 17% higher than the S$1,523 million achieved a year ago, with higher contributions across Keppel Infrastructure, Keppel Land, Keppel Capital and M1.
EPS for half year is 19.6 cents. Estimated FY EPS of 39 cents.
PE is about 17x, which is more or less trading at full value for the current price of $6.59.
Chart wise, doesn't look so rosy!
Not a call to buy or sell.
Pls dyodd.
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