Since then, both companies are pursuing the green agenda albeit by taking different paths. Keppel, as has been widely articulated, has gone down the asset-light route, transforming itself into an alternatives assets manager, where it pursues infrastructure and other projects through funds, trusts and REITs. Keppel undertakes the building and operating part of the value chain, with its funds, trusts and REITs being offtake vehicles for the assets’ stabilised cash flows.
During a media and analysts’ briefing by Sembcorp Industries (SGX:U96
) (Sembcorp) of its FY2023 results, group CEO Wong Kim Yin made a few points — and the most important for investors is that earnings and cash flows from the group’s largest contributor is likely to be sufficiently stable for it to announce a higher ordinary dividend which Wong sees as sustainable.
Sembcorp’s business model is different from Keppel’s. At the height of the oil and gas boom in the early 2010s, Sembcorp and Keppel through their subsidiaries were the world’s two largest rig builders.
