Keppel Corporation Limited (SGX: BN4) is another of Singapore’s oldest companies with a history dating back to 1859, when it built the first dry dock for ship repair at Keppel Harbour. Today, the company engages in the marine, property and infrastructure businesses. Its Offshore & Marine segment still carries out ship repairs, but is also known as a global leader in offshore rig design, construction and repair – it has built nearly 50% of the world’s jack-up rigs since 2000, and its KFELS B Class rig is now an industry benchmark. Additionally, it designs and builds specialised ships,…
Today, the company engages in the marine, property and infrastructure businesses.
Its Offshore & Marine segment still carries out ship repairs, but is also known as a global leader in offshore rig design, construction and repair – it has built nearly 50% of the world’s jack-up rigs since 2000, and its KFELS B Class rig is now an industry benchmark.
Additionally, it designs and builds specialised ships, platforms for the oil and gas sector, tugboats and ice-capable vessels, as well as offering marine related engineering and consultancy services.
The Property segment develops residential, office and commercial properties including the Caribbean, Reflections and Corals condominiums as well as the Marina at Keppel Bay.
The Infrastructure segment involves electricity generation, water purification and treatment of solid waste. It operates power plants in Brazil, China, The Philippines and Nicaragua. In Singapore, it owns and operates a gas-fired power plant on Jurong Island.
It is also the largest district cooling services provider in Singapore, with operations including Changi Business Park, Biopolis@One North and Woodlands Wafer Fab Park.
What’s more, it is responsible for one of the UK’s first Energy-From-Waste (eFW) plants, allowing Greater Manchester to divert 75% of its waste away from landfill by focusing on recycling materials and creating refuse-derived fuel (RDF).
But did you know…
- The name ‘Keppel’ is derived from Captain Henry Keppel, the British ship captain who, in 1848, discovered the natural, deep-water harbour at Tanjong Pagar. It was later named Keppel Harbour in his honour.
- Keppel’s first shipyard was situated in the area currently occupied by the Caribbean and Reflections condominiums at Keppel Bay.
- Two large granite outcrops (one at the present site of Labrador Park, off Pasir Panjang Road, the other on Sentosa Island) used to form a gateway to Keppel Harbour.
Known as Long Ya Men (Dragon’s Teeth Gate) they were used as navigational aids by ancient mariners to sail past Singapore when travelling from the Straits of Malacca to the South China Sea from as early as the 13th Century. They were blown up in 1848, to widen the entrance to the harbour and a replica marks the spot in Labrador Park today.
Return on Equity (ROE)
Keppel Corporation has one of the highest Return on Equity (ROE) (the return shareholders get on the money they have invested in the business) amongst Singapore’s large caps at 17% (the Strait’s Times Index (SGX: STI) average is 9%). It is also one of Singapore’s top five, most transparent companies.
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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore contributor Alison Hunt doesn’t own shares in any companies mentioned.