Keppel Limited

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#41
PUBLISHED APRIL 23, 2014
Gas producers exploring coal gasification
They are said to be Soxal, Linde Gas and Keppel's genco unit

BYRONNIE LIM
ronnie@sph.com.sg
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Industrial gas producers such as Soxal and Linde Gas, as well as Keppel Corp's genco unit, are said to be exploring plans by Singapore for a coal gasification project, which besides utilities, can produce synthetic gas for use as an alternative, competitive feedstock for petrochemical plants and refineries on Jurong Island - PHOTO: SPH
[SINGAPORE] Industrial gas producers such as Soxal and Linde Gas, as well as Keppel Corp's genco unit, are said to be exploring plans by Singapore for a coal gasification project, which besides utilities, can produce synthetic gas for use as an alternative, competitive feedstock for petrochemical plants and refineries on Jurong Island.
Following an earlier Request For Proposals (RFP) called by the Economic Development Board, discussions with the authorities are continuing, though approval has not been given for the project yet, The Business Times understands.
"It is still at an exploratory stage," said a spokesman for Singapore Oxygen Air Liquide, adding that the company is more keen on the project's production of synthetic gases such as carbon monoxide and hydrogen, rather than in the utilities, that is electricity and steam. This is because Soxal already has its own in-house cogen plant to meet its utilities needs.
"The project size and investment are still unclear . . . there are also environmental issues," the spokesman added.
Soxal has invested well over $1 billion here, including in a $500 million complex on Jurong Island recently - half of which went to a world-scale hydrogen plant to supply the feedstock to customers such as Neste Oil's renewable fuel plant. Hydrogen is used to reduce sulphur content in automotive fuels and is needed to process heavy crude into useable fuels.
A Linde Gas official told BT that following the RFP for the coal gasification plant in 2012, it has continued discussions with EDB. Like its competitor Soxal, Linde Gas also has its in-house unit to provide utilities. "So the possibility of a joint venture with a power generating company will depend on the project scope. We have to explore various options," the official added.
This is where a genco such as Keppel Merlimau Cogen can come in. With its new combined cycle gas turbines (CCGTs) in operation, the genco's share of the power market here jumped to 13.3 per cent last year from 8.8 per cent in 2012, marking its highest market share level since it joined the electricity market in 2006.
Asked about market talk of its interest in the coal gasification project, a Keppel spokesman said: "Keppel notes all key developments in the energy market with keen interest. We are constantly evaluating opportunities where we can grow our business."
But while the cost of generating power from a coal-fired station is lower than that by a gas-fired one, one obstacle for the coal gasification project is that recent new CCGT plant building here by gencos to capitalise on LNG supplies has led to Singapore power generation capacity/supply exceeding demand.
Energy Market Company figures show that while the monthly CCGT supply reached a new high of 7,000-plus MW, forecast demand rose at a much slower pace.
Another issue is environmental sustainability. EDB earlier indicated that while the main disadvantage of coal is its environmental impact, coal gasification technology provides potential for a "clean coal" plant and the use of technologies such as carbon capture to reduce the project's carbon footprint. But it also cautioned that a potential carbon tax, in view of a possible international agreement on carbon mitigation, could affect the project economics.
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#42
KepFels to study building of rig that can seal off wells
Published on Apr 29, 2014 1:33 AM



By Mok Fei Fei

KEPPEL Corp unit Keppel Fels has signed a partnership to study the construction of one of the world's first jack-up rigs with the ability to seal wells that are no longer productive.

Keppel Fels (KepFels) is working with a unit of offshore support and accommodation services provider Seafox Group on the project.

It said in a statement yesterday that the rig, dubbed Seafox 8, is being developed to address a gap in the market.

The firm noted that many wells in the North Sea and the Gulf of Mexico are reaching the end of productive life and would need to be properly sealed in the next few years due to environmental concerns.

Seafox 8 will be the first accommodation and service jack-up unit that will specifically support rigless activities for the sealing of unproductive wells.

Two methods are currently used. One involves the use of available equipment on a fixed platform without the support of a rig, which has the disadvantage of placing constraints on deck and bed space. The other method in use now involves the use of drilling rigs with the use of third-party equipment and is more costly.

The Keppel project is expected to be 25 per cent to 30 per cent more economical in terms of its day rates.

Keppel Offshore & Marine, which owns Keppel Fels, is also in discussion with Seafox to enter a joint venture to place an order for Seafox 8 once the study is completed.

The study is expected to be completed in the second half this year.

Mr Wong Kok Seng, the managing director of Keppel Offshore & Marine, said: "We have successfully developed and commercialised many proprietary concepts for a variety of offshore services and challenging frontiers by partnering our trendsetting customers in the early stages of those projects."

"With an experienced partner like Seafox in this market, we are confident Seafox 8 will be well-received and give us a good head start in growing our track record as the leading solutions provider for the plug and abandonment services sector."

Keppel Corp said the agreement is not expected to have any material impact on its net tangible assets and earnings per share. Its shares closed up a cent to $10.52 yesterday.

feimok@sph.com.sg
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#43
KEPPEL Corp unit Keppel Fels, is a market leader for rigs buidling. That make its business sustainable, amid competition from China, Korea and Singapore rig builders.

(not vested)
“夏则资皮,冬则资纱,旱则资船,水则资车” - 范蠡
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#44
What is the key difference btw Keppel Corp and Sembcorp marine?

Finding the Value in a Speculative World
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#45
(19-05-2014, 07:00 AM)LLI Wrote: What is the key difference btw Keppel Corp and Sembcorp marine?

Few major differences on O&M

- Keppel is a market leader, while Sembcorp marine is a market follower.
- Keppel and Sembcorp marine have different strategy. One is "Near Market, Near Customer", while the other seems continue to invest locally.

(not vested on both)
“夏则资皮,冬则资纱,旱则资船,水则资车” - 范蠡
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#46
Thanks
It is quite hard to have a clear picture of their business prospects.

(19-05-2014, 10:00 AM)CityFarmer Wrote:
(19-05-2014, 07:00 AM)LLI Wrote: What is the key difference btw Keppel Corp and Sembcorp marine?

Few major differences on O&M

- Keppel is a market leader, while Sembcorp marine is a market follower.
- Keppel and Sembcorp marine have different strategy. One is "Near Market, Near Customer", while the other seems continue to invest locally.

(not vested on both)

Finding the Value in a Speculative World
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#47
INVEST
Rig-builders may face drop in orders

Analyst cites spending cuts by oil companies and softer charter rates
Published on May 24, 2014 1:22 AM


Jack-up rigs under construction at the Keppel Fels shipyard in Singapore. Thanks to strong oil prices, business has been good for Keppel, the largest rig-builder in the world, and Sembcorp Marine, ranked second behind Keppel. -- ST FILE PHOTO

By Jonathan Kwok

RIG-BUILDERS have enjoyed some good years since the global financial crisis but at least one analyst is expecting them to face some problems getting new orders in the months ahead.

Oil companies are cutting their spending this year and charter rates are softening for some deepwater assets, said Maybank Kim Eng Research analyst Yeak Chee Keong in a note this week.

"These developments could put rig order momentum at risk in the next six to 12 months, with a knock-on effect on offshore shipyards whose stock prices are primarily driven by their order backlog."

Strong oil prices have boosted the orderbooks of Singapore's Keppel Corporation - the largest rig-builder in the world - and Sembcorp Marine, ranked No. 2 behind Keppel.

The business has been so good that even companies more used to building merchant ships - such as China's Yangzijiang Shipbuilding (Holdings) - have started to build their first rigs.

Because energy prices are high, oil majors can explore and produce more energy, which in turn drives the demand for more rigs.

However, oil companies are cutting budgets and charter rates are softening, warned Mr Yeak.

"We expect rig order momentum to diminish temporarily... This means backlog-driven shipyard stocks would experience muted share price performance until the order cycle resumes."

He downgraded his call on the offshore and marine sector to "neutral", from "overweight".

Keppel Corp was downgraded to "hold" in view of the sector's risks.

Mr Yeak had also recently downgraded Sembcorp Marine to "hold".

Mr Yeak would rather focus on opportunities in the offshore support vessel (OSV) sector as he believes the influx of new rigs this year and next would fuel a return in demand for OSVs. He also likes "asset operators less affected by oil companies' capital expenditure spending".

He kept his "buy" calls on OSV builders Nam Cheong and Vard Holdings, and offshore services providers Ezion Holdings and Mermaid Maritime.

Not all analysts share the downbeat sentiment, however.

OCBC Investment Research noted that Sembcorp Marine has secured a US$236 million (S$296 million) jack-up rig order through its subsidiary, Jurong Shipyard.

Scheduled for delivery in the second quarter of 2016, the rig will have enhanced features suitable for operations off the shores of Britain.

"Recall that Sembcorp Marine also had an order in October 2010 from Seadrill with a price tag of US$192 million per rig," said OCBC Investment Research analyst Low Pei Han in a note.

"Besides a general increase in jack-up rig prices, the current unit could also be priced higher due to more customisation.

"Year-to-date, Sembcorp Marine has secured new orders worth about S$1.93 billion, accounting for 48 per cent of our full-year estimate."

She kept her "buy" call on Sembcorp Marine with a $4.90 fair value estimate.

Sembcorp Marine shares gained two cents to $4.03 yesterday while Keppel rose four cents to $10.71.

jonkwok@sph.com.sg
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#48
Keppel is doing well on its offshore and marine segment...Big Grin

(not vested)

Keppel Corp 2Q profit up, boosted by offshore unit

Keppel Corporation, the world’s largest builder of jackup rigs, reported on Thursday a 17% increase in its second-quarter net profit, propelled by gains at its core offshore and marine business.

Net profit for the quarter was $406 million, the company said in a statement. It said its first-half profit was $744.7 million, slightly short of half the full-year mean forecast of $1.572 billion made by 24 analysts, according to Thomson Reuters data.

Keppel said the net profit at the offshore and marine segment was 14% higher from the same year-ago period.

The unit, which contributed more than half of the company’s 2013 revenue, took in S$3.2 billion worth of new orders in the first half of the year, raising the company’s total outstanding order book to $14.1 billion.
http://www.theedgesingapore.com/the-dail...-unit.html
“夏则资皮,冬则资纱,旱则资船,水则资车” - 范蠡
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#49
Source: OCBC MarketPulse

Keppel Corporation: Continues to deliver

Keppel Corp reported a 3.3% YoY rise in revenue to S$3.18b and a 17.1% increase in net profit to S$406.0m in 2Q14, such that 1H14 net profit met 49% of our full year estimates, in line with expectations. Operating margin in the O&M division remained strong in the quarter, at 14.7% in 2Q14 vs. 14.2% in 2Q13. Though the deepwater market has softened, management sees the jack-up market as resilient, for which the group is still receiving healthy enquiries. Meanwhile, the weaker property market is opening prospects for the group, while no additional provisions were made in the infrastructure division in 1H14. KEP has secured orders of about S$3.2b in 1H14, accounting for close to half of our full-year new order win estimate, and bringing its net order book to S$14.1b (as at 30 Jun) with visibility into 2019. Maintain BUY with higher fair value estimate of S$12.31 (prev S$12.25); an interim dividend of S$0.12/share has also been declared. (Low Pei Han)
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#50
Gorgon by Chevron going to bleed for sometime as there is no buyer for the heavily invested project (54B).

So how can there be any money left for Oil Co. to find new oil field.

With major oil field finds getting more expensive and development too risky, oil Co. will go into fracking.

This is a significant industry shift and it will result in less spending on rig.

1 might add, the beginning of a major downtrend from the peak!
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