Shareholders of Keppel Corpation has suffered a torrid year. Year to date, Keppel’s share price has fallen from a lofty 11.00 to that of 6.80, marking a 38% decline. This is in line with the global stock market rout witnessed over the past two months. As investors on the side line watching this carnage, it is tempting to start our nibbles into Keppel Corp; but first let us evaluate the situation.
Overview of Keppel
Keppel is a conglomerate whose business is spread across four segments: Offshore and Marine, Property, Infrastructure and Investments.
Keppel’s earnings come mainly from its offshore and marine as well as property. Keppel is the global leader in rig design and buildings as well as specialized shipbuilding. While it’s property arm consist of Keppel Land and Keppel Reit, hence giving it exposure to both Singapore and China’s property market.
Its infrastructure division has interests in Singapore’s power ......