What Keppel Offshore & Marine’s Order Book Can Tell Us
By (The) Boring Investor  •  December 17, 2017
I sold Keppel Corp at $6.16 in Jan this year, expecting its Offshore & Marine (O&M) segment to start showing losses. Yet, for 3 consecutive quarters, Keppel O&M has surprised me with either breakeven or a small net profit of $1M. How did it achieve this feat, and will it continue to at least break even for the coming quarters?

The answers can be partially found in Keppel O&M's order books. Fig. 1 below shows the order book based on the financial results for Q3 FY2017.

Fig. 1: Keppel O&M Delivery Order Book for Q3 FY2017

As shown in the figure above, Keppel O&M has been completing the projects ahead of time. For deliveries in FY2018, the gross contract value is $1,052M, but it has completed 85% of the contracts, leaving only $156M yet to be completed. Similarly, for deliveries in FY2019, it has completed 78% of the gross ...
...
Read the full article
By (The) Boring Investor
nvestor, Engineer, Photographer, Blogger, Friend and Son.
LEAVE A COMMENT
LEAVE A COMMENT

Your email address will not be published.

*

Your Email Address will not be published
*

Read More Articles
More from thefinance