Keppel Corporation has reaffirmed its Vision 2030 and will roll out the next steps for its implementation, it said on September 29.
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“The Board and Management are committed to drive Vision 2030 and realise Keppel’s full potential as an integrated business, providing solutions for sustainable urbanisation,” says Keppel Corporation chairman Lee Boon Yang.
“We have identified attractive opportunities in each of our focus areas of Energy & Environment, Urban Development, Connectivity and Asset Management, which operate in growing and resilient markets, and are mobilising to capture these opportunities and continuing our efforts to operationalise our integrated business model,” Lee added.
Based on the group’s balance sheet as at June 30, Keppel has identified assets with a total carrying value of approximately $17.5 billion that can be monetised over time and channelled towards growth initiatives.
The assets include Keppel’s landbank that has a value of $7 billion, development projects, investment properties, as well as noncore assets such as Keppel Offshore & Marine’s (O&M) oil rigs (that’s valued at $3.9 billion).
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Keppel also said that it will commence a strategic review of its O&M business amid the sector’s “challenging environment”.
The review will explore both organic and inorganic options including reviewing the strategy and business model of Keppel O&M for the former, or strategic mergers or disposal for the latter.
At a briefing to the media and analysts on September 29, Keppel Corporation CEO Loh Chin Hua says, “Keppel is well placed to weather the challenging environment and chart our growth path. As we execute our long term plans and build growth engines for the future, we will also seek to realise the Group’s current potential by unlocking about $3-5 billion of our monetisable assets over the next three years, which will be redeployed to seize new opportunities and improve returns”.
“The financial discipline that Vision 2030 instills has led us to conduct a strategic review of our logistics business, and now, the offshore & marine business,” Loh adds.
Shares in Keppel Corp closed 11 cents higher, or 2.6% up, at $4.30 on September 29.
