Shares & Derivatives
Will Keppel Offshore & Marine and Sembcorp Marine Merge?
By Rolf Suey - Invest in Yourself  •  May 2, 2020
PS: Before using this site and its contents, please click here and read carefully the disclaimer. In my last article, I received a comment to share insight about the possible merger of Keppel Corp (KC) and Sembcorp Marine (SCM) to ensure survival in the light of the current low oil price environment. In response, I wrote this article. To avoid confusion, Keppel Corp is the parent company of Keppel Offshore and Marine (KOM), so the merger on the cards is between KOM and SCM. WHY A MERGER IS POSSIBLE Declining earnings Since the oil crisis began in late 2014, both KOM and SCM had been reporting profit slumps. During the heyday, KOM’s earnings attributed to >50% of group’s profits. Today it is a completely different story. While KOM’s revenue is still 25-30% of the Keppel group’s topline, earnings fell drastically. For FY2019, Keppel group earnings is $707m while KOM net profit is S$10m, attributing...
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By Rolf Suey - Invest in Yourself
I am a Singaporean, born in the late 1970s experiencing mid-life career crisis at time of writing this blog. One reason to start blogging at an older age, is to break my own comfort zone. While it can be considered late, it is "Better Late Than Never" ...
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