Keppel Corporation Limited’s Investor Presentation: 5 Quick Things to Learn

Keppel Corporation Limited (SGX: BN4) shared an investor presentation yesterday. There are interesting notes to learn from it.

As a brief background, Keppel Corporation organizes its business into four different units: Offshore and Marine; Infrastructure; Property; and Investments. You can read more about the company in here and here.

Staying afloat

Below are five useful things I picked up from the investor presentation:

  1. On the first slide, Keppel Corporation outlined four key trends in urbanization around the world:
    • Two thirds of the world’s population will live in cities by 2050
    • In 15 years, three billion people will join the middle class
    • In 20 years, there will be 41 megacities
    • Power consumption will increase by 85% between 2010 to 2040
  2. All these trends underpin Keppel Corporation’s sprawling conglomerate. For instance, its Property segment has 16,590 launch-ready home units in China, Vietnam, Indonesia, Singapore and others. This plays into the urbanization trend. On power consumption, Keppel Corporation is also a global leader in offshore rigs design and construction.
  3. Keppel Corporation has stakes in Keppel Infrastructure Trust (SGX: A7RU)Keppel DC REIT (SGX: AJBU) and Keppel REIT (SGX: K71U). It also has a wholly owned real estate investment firm in Alpha Investment Partners. These four entities allow Keppel Corporation to recycle its infrastructure and property assets when and where appropriate.
  4. For the first nine months of the year, Keppel Corporation’s net profit was $1.1 billion. Recurring profit and project-based profit was 26% and 47% respectively of the total net profit. The remaining 27% came from revaluation, major impairments, and divestments.
  5. Keppel Corporation’s Offshore and Marine segment had a net orderbook of $10 billion as of 30 September 2015. This is the lowest the net orderbook has been since 2011. Newbuild semis was 46% of the total net orderbook while floating production storage and offloading (FSPO) and floating liquefied natural gas (FLNG) conversions took up 28%. Elsewhere, new jackups made up 19% of the net orderbook.

Foolish takeaway

If we are looking to own a company for the long term, we have to keep up with its developments. One way would be through investor presentations that it shares. This helps us put together a more complete thesis around a company.

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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 Chin Hui Leong doesn’t own shares in any companies mentioned.