Read? Yield of dreams: Investors have "a once in a lifetime opportunity" in blue chips (14)
Address by Mr Loh Chin Hua, CEO of Keppel Corporation
FIRST HALF ENDED 30 JUNE 2021
Good evening. Welcome to the webcast on Keppel Corporation’s first half
2021 results and performance.
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We recognise that dividends are important to our shareholders. I mentioned earlier that some of the funds unlocked from our asset monetisation programme could be returned to shareholders over time. In appreciation of the support and confidence of our shareholders, the Board of Directors has approved an interim cash dividend of 12.0 cents per share for 1H 2021, after ringfencing the impairments related to KrisEnergy’s liquidation. This interim dividend, which will be paid to shareholders on 19 August 2021, is significantly higher than last year’s interim dividend of 3.0 cents and also higher than the interim dividend of 8.0 cents declared in 2019, reflecting the Board and management’s confidence in our vision and strategy.
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Walau!
Uncle8888 is expecting $0.04 to $0.05!
Shiok man! Total dividend for 2021 = $0.07 + $0.12 = $0.19
The days of oily and smelly Kep Corp is over!
Average annual yield for Kep Corp (2001) is 26% p.a. for 20 years!
Buy and Hold for home bias Koala/Panda retail investor in local SGX!
Posts
With more asset recycling ahead, can 1H 2021’s dividend per share (DPS) be used as a
ReplyDeletebenchmark for 2H 2021 or is it a one-off generosity?
LCH: Well first of all, I am glad that you find the interim dividend attractive. Of course, we will
have to look at the full year results. As you know, we do not have a dividend policy, but we have
typically been paying around 40 to 50/60% of net profits. Of course, with the monetisation
programme, we can afford to be a little bit more open-minded in terms of returning capital to
shareholders to reward them for their patience and for investing in Keppel Corporation.
Congrats CW!
DeleteNice to see you happy :)
You definitely qualify as patient and loyal long tine Keppel shareholder!
Holding from Uncle to Ah Pek. LOL!
ReplyDeleteHi Uncle8888,
ReplyDeleteNext up will be your DBS dividends as big daddy has given the banks go ahead to restore distributions.
Another bonus on top of share price recovery! :)
You are really a hard core fan of Keppel. I bought a bit last year after following your blog for a while. Lol.
ReplyDeleteHard core until someone asked. LOL!
DeleteRead? Uncle, you work for Keppel?
🤣🤣🤣 Bay tahan. Keep the jokes coming.
DeleteGood old days anyhow buy also can make money, all taken private or over. DBS Land, C&C, Cerebos,Kepoel TatLee Bank, Far East Livingston. In the end got no stocks left.
ReplyDeleteRecent years, anyhow buy high chance to lose money.
Dropping by to congratulate you on your Keppel win! One needs lots of conviction to hold for so long. Nice play :)
ReplyDeleteKEPPEL Corporation on Monday made a privatisation offer for Singapore Press Holdings' (SPH) non-media business through a scheme of arrangement. The deal values SPH at S$3.4 billion with Keppel's share of the deal totalling S$2.2 billion.
ReplyDeleteUnder the scheme, shareholders will receive a total consideration of S$2.099 per share. This will comprise cash of $0.668 per share, 0.596 Keppel Reit unit valued at S$0.715 per unit, and 0.782 SPH Reit units valued at S$0.716 per unit from a distribution in-specie by SPH.
The scheme is subject to approval by SPH and Keppel shareholders, as well as other conditions and regulatory approvals.
If the deal is approved, SPH, which publishes The Business Times, will be delisted and will become a wholly owned subsidiary of Keppel. Keppel will hold stakes of about 20 per cent in both SPH Reit and Keppel Reit.
So is this good for Keppel shareholders? Any thoughts or analysis?
DeleteTemasek's left hand passes to right hand to unlock and synergize shareholder value. SPH is too small as listed entity so Temasek wins liao by passing to Big Brother, Keppel to take care! See how mkt reacts tmr. LOL!
DeleteYou mentioned about the importance of return of capital to shareholders. With this
ReplyDeletetransaction, half of the capital from the ongoing asset monetisation will be used. Does it
change your view on near-term dividend payout to shareholders?
LCH: The short answer, Rahul, is that when we monetise assets, as we have said before, it meets
with our asset-light business model. It also allows us to reposition the portfolio for new growth
initiatives. Keppel is still a growing business, so we would still need to invest in order to create
new profits, to pay dividends in the future. So we cannot be just doing pure monetisation and
returning all capital to shareholders. But having said that, you would note that for the first half, we
have paid 12 cents interim dividend, and this is something that the market has taken a shine to.
When the Board and the management recommended and deliberated on this interim dividend,
clearly this deal was already very much in consideration. So we believe that with the asset
monetisation that we have planned, and of course we would still need to execute them, but we
are quite optimistic that the monetisation programme will continue to do well. It would allow us to
pivot our portfolio into new growth engines. We think that there is enough headroom for us to
consider other growth initiatives such as renewables and decarbonisation solutions. But there
would also be the ability for us to improve our dividend payment to shareholders. We know
dividends are very important to our shareholders. And of course, as we improve the quality of our
earnings – and this transaction will improve the quality of our earnings by increasing the proportion
of net income that is recurring - it would also give us a better platform to pay dividends to
shareholders.
Good for retirees. At one of Keppel Retail Shareholders Day, LCH noted that many of Keppel long time loyal shareholders are seniors and we know dividends are very important to our shareholders.
Delete