atans1

Keppel still looks gd BUT

In Energy on 07/01/2014 at 4:58 am

Last December, there were three pieces of gd news

— KFELS delivered its 21st new build offshore rig for 2013, setting a world record for the most number of rigs delivered in a year.KFELS held the previous record of delivering 13 rigs in a year back in 2009.

Keppel O&M (KPELS parent)won $150m in contracts (five of them). This year there is expected to be strong growth in capital investments in global exploration and production (E&P) projects which should should keep new orders coming in for Singapore’s offshore and marine sector this year, although rising costs and competition could put pressure margins.

  It will build its first drillship. But it doesn’t have a buyer lined up. Keppel is usually very KS, so this is something to watch. Still going into drillship is a major step showing it has confidence in its technical ability to built such ships. Most likely Keppel couldn’t get a decent price from operators who would want big discounts for being the first customer.

But it has a new CEO, a numbers man, not an engineer.

Keppel Corporation has appointed its CEO-Designate Loh Chin Hua as an executive director to its board with effect from January 1, 2014.

Its CEO Choo Chiau Beng will retire on the same day.

With effect from the same date, Mr Loh will also succeed Mr Choo as chairman on the boards of the group’s key subsidiaries, including Keppel Land, Keppel Offshore & Marine and Keppel Infrastructure.

Mr Loh was appointed as group chief financial officer in January 2012 and then CEO-Designate in July 2013.

He has been with the Keppel group for 11 years and has over 25 years of experience in real estate investing and fund management. (CNA in early December)

Those who know their history of US car maker, GM, will know that GM’s decline began when the top job went to a finance guy, not an engineer. Keppel’s core competency is riig-building, not property or finance, the new CEO’s core skills. And frankly KepLand sucks by comparison with CapitaLand or Keppel’s offshore engineering biz. If it was an ang moh co, investors would have demanded that Keppel divest its property biz And Kep T&T. But to give the new CEO some credit, Kep T&T is finally going ahead with a reits of its data centre assets.

And here’s an interesting article I came across: http://www.fool.sg/2013/12/12/is-keppel-corp-really-cheap/

Finally, the other Temasek’s Fab 5 stocks still look gd for those who want equity exposure, decent income and relative safety. Doubtless there will be those TRe readers who will post I’m a PAP mole if TRE republishes this article. They should remember, Deng’s,”It doesn’t matter whether a cat is white or black, as long as it catches mice.”: likewise let’s be objective when trying to make money. They should also remember Mao’s “Seek Truth from facts.”, if they hate Deng for being complimentary about S’pore.

Declaration of interest: got Keppel shares. in super long term section of portfolio, alongside HSBC, Haw Par and Hwa Hong.

Related post: https://atans1.wordpress.com/2013/11/28/where-sporean-traits-produce-world-class-tlcs/

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  1. The most successful non-engineer who turned an engineering giant into a multi-disciplinary global giant is Jack Welch,the hero of CEO of Temasek,so perhaps Madam Ho sees Mr Loh Chin Hua as Singapore’s Jack Welch in the making,however in my humble,the track record of Madam Ho leaves much to be desired.Well.However it has been decided,so

    • He trained as an engineer. GE was already a great co. He made it better. Ho Ching trained as engineer and worked in Mindef’s defence R&D arm(now DETFS?) with other top engr grads from NUS etc, one of whom was Eric Tan formerly of WP.

      • Jack Welch graduated in chemistry from the University of Massachusetts and in 1959 got a Ph.D in chemical engineering from the University of Illinois.

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