Don' t worry, keppel has the potential to hit 5.60 in short term.
Keppel has past resistance of 5.40 now trading around 5.44. Why 'so serious' ? This blue chip is interesting. It's ups and downs give us some opportunity to to trade and make a few bucks. ...dividends or capital gains or both !
Keppel has past resistance of 5.40 now trading around 5.44. Why 'so serious' ? This blue chip is interesting. It's ups and downs give us some opportunity to to trade and make a few bucks. ...dividends or capital gains or both !
Target price of $5.70! Still got upside!
Singapore shipyards in dire straits
By:
Gwyneth Yeo
SINGAPORE (Aug 11): UOB Kay Hian is downgrading Singapore shipyards to &ldquo underweight&rdquo as orders are put on hold, aborted or delayed amid the low oil price environment.
In a note on Thursday, analyst Foo Zhiwei notes that orders for floating production system (FPS) have fallen below the eight-year average of 1.5 units per month. Only two FPS orders were recorded for the year to July, which translates to 0.6 unit per month for 3Q2016.
On top of that, fewer of the planned FPS orders are reaching the final bidding stages, as low oil prices have made it &ldquo difficult for companies to sanction projects&rdquo , says Foo. Only 21% of the 241 planned FPS projects globally made it to the bidding and final stages, while 142 are in the planning stage and 49 in the appraisal stage. At its peak, 31% of planned projects made it to the final stage.
Meanwhile, only 34% of the 56 FPS projects which were in their final stages in 3Q2015 were awarded a contract or remain on track for a contract. Thirty-two per cent of them were sent back to the planning stage or cancelled, while 34% had their award dates delayed by a year or more. &ldquo Net realisation of orders in the continued low oil price environment is low as projects remain uneconomical,&rdquo explains Foo.
Foo estimates that Singapore shipyards will win about US$1.9 billion ($2.6 billion) in FPS orders per year from 2016 to 2019, given that 41% of the total US$37 billion of global FPS orders involves conversion, a specialty of the Singapore yards, and assuming half of the global orders go local yards.
However, those numbers could be lower in reality, says Foo, given the recent competition from Chinese yards for conversion orders and the lower net realisation of projects.
The brokerage is forecasting an outlook of near-zero newbuild rig orders until 2020, and together with the dismal FPS market, Foo expects the yards to report poor earnings for the next five years with lower dividend payouts.
Of the yards, Foo prefers Keppel over Sembcorp Marine given the former&rsquo s property, infrastructure and investment businesses. &ldquo Sembcorp Marine&rsquo s earnings are under more pressure as it has no other businesses to diversify to and risks its rig-building and conversion orderbook running low,&rdquo he says.
UOB Kay Hian has a &ldquo hold&rdquo recommendation for both Keppel and Sembcorp Marine, with a target price of $5.70 and $1.27 respectively.
Shares of Keppel and Sembcorp Marine closed at $5.25 and $1.37 respectively.
We all know that the situation is bad for FPSO, FSO, Semi, Jackup, Drillship or ant O& G related business and also for the Keppel, Jurong groups. What is the point in showing the old crappy news by Waters? We all know it is so bad that there is no light at the end of tunnel as we speak. There is no need to put more fuel on our fire
Keppel is still giving good dividend yield. i don' t think the big fish care so long as got dividend. $5+ is fairly justifiable i think.
Friend lokeahead, what are you happy about?
why you post old news?
Singapore shipyards in dire straits
By:
Gwyneth Yeo
SINGAPORE (Aug 11): UOB Kay Hian is downgrading Singapore shipyards to &ldquo underweight&rdquo as orders are put on hold, aborted or delayed amid the low oil price environment.
In a note on Thursday, analyst Foo Zhiwei notes that orders for floating production system (FPS) have fallen below the eight-year average of 1.5 units per month. Only two FPS orders were recorded for the year to July, which translates to 0.6 unit per month for 3Q2016.
On top of that, fewer of the planned FPS orders are reaching the final bidding stages, as low oil prices have made it &ldquo difficult for companies to sanction projects&rdquo , says Foo. Only 21% of the 241 planned FPS projects globally made it to the bidding and final stages, while 142 are in the planning stage and 49 in the appraisal stage. At its peak, 31% of planned projects made it to the final stage.
Meanwhile, only 34% of the 56 FPS projects which were in their final stages in 3Q2015 were awarded a contract or remain on track for a contract. Thirty-two per cent of them were sent back to the planning stage or cancelled, while 34% had their award dates delayed by a year or more. &ldquo Net realisation of orders in the continued low oil price environment is low as projects remain uneconomical,&rdquo explains Foo.
Foo estimates that Singapore shipyards will win about US$1.9 billion ($2.6 billion) in FPS orders per year from 2016 to 2019, given that 41% of the total US$37 billion of global FPS orders involves conversion, a specialty of the Singapore yards, and assuming half of the global orders go local yards.
However, those numbers could be lower in reality, says Foo, given the recent competition from Chinese yards for conversion orders and the lower net realisation of projects.
The brokerage is forecasting an outlook of near-zero newbuild rig orders until 2020, and together with the dismal FPS market, Foo expects the yards to report poor earnings for the next five years with lower dividend payouts.
Of the yards, Foo prefers Keppel over Sembcorp Marine given the former&rsquo s property, infrastructure and investment businesses. &ldquo Sembcorp Marine&rsquo s earnings are under more pressure as it has no other businesses to diversify to and risks its rig-building and conversion orderbook running low,&rdquo he says.
UOB Kay Hian has a &ldquo hold&rdquo recommendation for both Keppel and Sembcorp Marine, with a target price of $5.70 and $1.27 respectively.
Shares of Keppel and Sembcorp Marine closed at $5.25 and $1.37 respectively.
Kc...? ? ?
why you post old news?
Singapore shipyards in dire straits
By:
Gwyneth Yeo
SINGAPORE (Aug 11): UOB Kay Hian is downgrading Singapore shipyards to &ldquo underweight&rdquo as orders are put on hold, aborted or delayed amid the low oil price environment.
In a note on Thursday, analyst Foo Zhiwei notes that orders for floating production system (FPS) have fallen below the eight-year average of 1.5 units per month. Only two FPS orders were recorded for the year to July, which translates to 0.6 unit per month for 3Q2016.
On top of that, fewer of the planned FPS orders are reaching the final bidding stages, as low oil prices have made it &ldquo difficult for companies to sanction projects&rdquo , says Foo. Only 21% of the 241 planned FPS projects globally made it to the bidding and final stages, while 142 are in the planning stage and 49 in the appraisal stage. At its peak, 31% of planned projects made it to the final stage.
Meanwhile, only 34% of the 56 FPS projects which were in their final stages in 3Q2015 were awarded a contract or remain on track for a contract. Thirty-two per cent of them were sent back to the planning stage or cancelled, while 34% had their award dates delayed by a year or more. &ldquo Net realisation of orders in the continued low oil price environment is low as projects remain uneconomical,&rdquo explains Foo.
Foo estimates that Singapore shipyards will win about US$1.9 billion ($2.6 billion) in FPS orders per year from 2016 to 2019, given that 41% of the total US$37 billion of global FPS orders involves conversion, a specialty of the Singapore yards, and assuming half of the global orders go local yards.
However, those numbers could be lower in reality, says Foo, given the recent competition from Chinese yards for conversion orders and the lower net realisation of projects.
The brokerage is forecasting an outlook of near-zero newbuild rig orders until 2020, and together with the dismal FPS market, Foo expects the yards to report poor earnings for the next five years with lower dividend payouts.
Of the yards, Foo prefers Keppel over Sembcorp Marine given the former&rsquo s property, infrastructure and investment businesses. &ldquo Sembcorp Marine&rsquo s earnings are under more pressure as it has no other businesses to diversify to and risks its rig-building and conversion orderbook running low,&rdquo he says.
UOB Kay Hian has a &ldquo hold&rdquo recommendation for both Keppel and Sembcorp Marine, with a target price of $5.70 and $1.27 respectively.
Shares of Keppel and Sembcorp Marine closed at $5.25 and $1.37 respectively.
Singapore shipyards in dire straits
SINGAPORE (Aug 11): UOB Kay Hian is downgrading Singapore shipyards to &ldquo underweight&rdquo as orders are put on hold, aborted or delayed amid the low oil price environment.
In a note on Thursday, analyst Foo Zhiwei notes that orders for floating production system (FPS) have fallen below the eight-year average of 1.5 units per month. Only two FPS orders were recorded for the year to July, which translates to 0.6 unit per month for 3Q2016.
On top of that, fewer of the planned FPS orders are reaching the final bidding stages, as low oil prices have made it &ldquo difficult for companies to sanction projects&rdquo , says Foo. Only 21% of the 241 planned FPS projects globally made it to the bidding and final stages, while 142 are in the planning stage and 49 in the appraisal stage. At its peak, 31% of planned projects made it to the final stage.
Meanwhile, only 34% of the 56 FPS projects which were in their final stages in 3Q2015 were awarded a contract or remain on track for a contract. Thirty-two per cent of them were sent back to the planning stage or cancelled, while 34% had their award dates delayed by a year or more. &ldquo Net realisation of orders in the continued low oil price environment is low as projects remain uneconomical,&rdquo explains Foo.
Foo estimates that Singapore shipyards will win about US$1.9 billion ($2.6 billion) in FPS orders per year from 2016 to 2019, given that 41% of the total US$37 billion of global FPS orders involves conversion, a specialty of the Singapore yards, and assuming half of the global orders go local yards.
However, those numbers could be lower in reality, says Foo, given the recent competition from Chinese yards for conversion orders and the lower net realisation of projects.
The brokerage is forecasting an outlook of near-zero newbuild rig orders until 2020, and together with the dismal FPS market, Foo expects the yards to report poor earnings for the next five years with lower dividend payouts.
Of the yards, Foo prefers Keppel over Sembcorp Marine given the former&rsquo s property, infrastructure and investment businesses. &ldquo Sembcorp Marine&rsquo s earnings are under more pressure as it has no other businesses to diversify to and risks its rig-building and conversion orderbook running low,&rdquo he says.
UOB Kay Hian has a &ldquo hold&rdquo recommendation for both Keppel and Sembcorp Marine, with a target price of $5.70 and $1.27 respectively.
Shares of Keppel and Sembcorp Marine closed at $5.25 and $1.37 respectively.
Sembmarine kicked out of STI good for Keppel? Funds selling Sembmarine will put the money into Keppel for same O&G exposure?
Haha, I q' d 514, but now 520 liao ....
Yup!still waiting for 5.15 and below. Gd luck
Good chance you may get your 5.15 soon. Being a medium term guy gear towards dividends and capital gain, am happy to hold on when the fruit is ripe for me to pick although i got them at higher price !.
Good luck and cheers to you , fellas ! ?
Yup!still waiting for 5.15 and below. Gd luck
Good chance you may get your 5.15 soon. Being a medium term guy gear towards dividends and capital gain, am happy to hold on when the fruit is ripe for me to pick although i got them at higher price !.
Good luck and cheers to you , fellas ! ?
This is precisely what I was trying to say. In fact, some analysts reviews (not that I love them too much anyway) are calling property a (or THE) silver lining in this harsh winter.
But Keppel just said China property do well.
Kep 2main pillars- marine $ property slowing down sh be extra carefull when fishing esp their bus in brazil
But Keppel just said China property do well.
Kep 2main pillars- marine $ property slowing down sh be extra carefull when fishing esp their bus in brazil
