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Keppel Corporation - OCBC Investment 2022-02-17: Outperformer So Far This Year

KEPPEL CORPORATION LIMITED (SGX:BN4) | SGinvestors.io KEPPEL CORPORATION LIMITED (SGX:BN4)

Keppel Corporation - Outperformer So Far This Year

  • Keppel Corp's share price at 52-week high (16 Feb close).
  • Supported by FY21 results announcement, sizeable dividend and share buyback programme.
  • Enters into arbitration proceedings with SPH.



Share price faring well so far this year

  • Since the start of the year, Keppel Corp's share price has appreciated by about 18% (based on the closing price of S$6.08 on 17 February 2022), significantly outperforming the broader Straits Times Index.
  • One of the main reasons behind this good price performance is the FY21 earnings announcement by Keppel Corp (SGX:BN4), during which the group reported net profit of S$1.02b for the full year, which is the highest achieved in the past six years since the offshore & marine (O&M) downturn. This marked a sharp reversal from FY20’s net loss of S$506m.
  • Keppel Corp’s recurring income grew 33% y-o-y and contributed S$292m to the group’s net profit for FY21, anchored by contributions from Keppel Corp’s stakes in its REITs & Trust, infrastructure services, as well as asset management.


Sizeable final dividend and share buyback programme

  • The market was also receptive to Keppel Corp's announcement of a sizeable final dividend of S$0.21/share (which reflected the success of Keppel Corp’s asset monetization programme) as well as the S$500m share buyback programme that allowed the purchase of up to a maximum of 2% of Keppel Corp’s issued shares.

Other corporate development updates






OCBC Research Team OCBC Investment Research | https://www.iocbc.com/ 2022-02-17
SGX Stock Analyst Report BUY MAINTAIN BUY 7.00 UP 6.330



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