Celebrating 50 years - Envisaging FutureKeppel - Eco-City enters new phase of development 24 - Keppel Land
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Issue 3 / 2018
www.kepcorp.com/ekeppelite
Celebrating
Eco-City enters new
phase of
50 years
development 24
Celebrating as
OneKeppel 26
Shaping cities of
the future 32
Envisaging
FutureKeppel
MCI (P) 042/01/2018
Contents
2
26 38
47 52
SUSTAINING GROWTH Driving sustainability 22 Spurring Innovations
Forging ahead 4 Improving productivity with 41
Eco-City enters new phase of 24 technology
Resilient performance 8 development
EMPOWERING LIVES
In conversation 11 SPECIAL FOCUS Enriching minds 42
Celebrating as OneKeppel 26
Pursuing expansion 14 Scaling new heights 43
Providing urban solutions 31
Stable distributions Encouraging innovation 44
Vessels of tomorrow
Sustainable returns 15 Engaging union members
Shaping cities of the future 32
Steady growth Keppelites Around the World
Leading the green building 34 Spirit of adventure 45
Delivering value 16 movement
Homes in the Gardens NURTURING COMMUNITIES
Enhancing customer experience Raising eco-consciousness 46
Keppel sells five existing rigs to 17 Leader in ship repair 35
Borr Drilling Keppel Volunteers
At the forefront of new energy Making a difference 47
Singapore’s first VLCC scrubber 18
retrofit Expanding networks 36 GETTING TO KNOW YOU
Spotlight on: Chris Ong 50
Data centre portfolio expansion Engaging investors 37
BACK PAGE
Environmental accolades 19 HSEMATTERS A leader in LNG solutions 52
Towards zero fatalities 38
Bolstering leadership 20
Insightful sharing 40
Dual-fuel dredger contracts secured 21
En bloc sale of residential projects
Sustaining Growth 3
Editor’s Note
Editorial Team
Dear Readers,
Editorial Advisor
Ho Tong Yen
Keppel Corporation celebrates its 50th anniversary in 2018. One of the key events held to
commemorate the company’s Golden Jubilee was the Keppel 50 Charity Run. President Editor
of Singapore Mdm Halimah Yacob was the guest-of-honour at the event on 7 July 2018, Sue-Ann Huang
which drew participation from over 200 Keppelites. Committed to make a positive impact
Copy Editors
on the community, Keppel marked the occasion with a $1 million donation to President’s Brian Lee, Han Sufen
Challenge 2018. We share highlights of the day in this issue of Keppelite (see pages 26
to 30). Editorial Team
Ana Luisa Cruz, Ang Lai Lee,
From humble beginnings as a ship repair yard, the Keppel Group has grown to be a multi- Ariel Tee, Casey Chiang,
Donald Sng, Eileen Tan,
business company providing robust solutions for sustainable urbanisation. Our businesses Elizabeth Widjaja, Fiona Aw,
meet the growing need for energy, infrastructure, clean environments, high quality homes Frances Teh, Grace Chia,
and offices, and connectivity. Guo Xiaorong, Hoo Yao Lin,
Ivana Chua, Kevin Ho,
As industries increasingly adopt cleaner fuel alternatives, Keppel Offshore & Marine (Keppel Lee Wan Jun, Liang Hui Hui,
Mary Ann Bey, Ong Wen Qi,
O&M) is harnessing its expertise in newbuilds and Liquefied Natural Gas (LNG) to provide
Razali Maulod, Ricky Ling, Roy Tan,
customised solutions for clients and capture new market opportunities. Keppel O&M has Serena Toh, Sharon Woo,
won a contract from FueLNG to build Southeast Asia’s first LNG bunkering vessel valued Song Jia Jia, Tang Yibing,
at approximately $50 million (see backpage). Tay Jia Wei, Teri Liew, Tracy Pham,
Woon Pek Yong, Yolanda Guo
On track to realising its vision of becoming a model of sustainable urbanisation in China
is the Sino-Singapore Tianjin Eco–City (Eco-City) which celebrates its 10th anniversary this Please mail your correspondence to:
year. Mr Teo Chee Hean, Deputy Prime Minister and Coordinating Minister for National Group Corporate Communications
Security, visited the Eco-City on 1 July 2018 as part of his nine-day visit to China. We share – Keppelite Editor
snapshots of the visit and anniversary festivities (see pages 24, 25 and 46). Keppel Corporation Limited
1 HarbourFront Ave, #18-01
Keppel Bay Tower
Reflecting Keppel’s commitment to sustainability and innovation, Keppel Corporation is Singapore 098632
a sponsor of the Lee Kuan Yew World City Prize, a highlight of this year’s World Cities
Summit in July 2018. The prize, which was won by South Korean capital Seoul this year, Email: keppelgroup@kepcorp.com
recognises the outstanding achievements of cities and leaders in tackling urban challenges Website: www.kepcorp.com/ekeppelite
and creating liveable and vibrant communities (see pages 32 and 33).
Keppelite is a publication of Keppel
Corporation, and is published
Lastly, we share highlights from the annual sustainability reports of Keppel Corporation quarterly by the Group Corporate
and Keppel Land. The reports articulate Keppel’s progress in line with the Sustainable Communications Division. All
Development Goals, a globally shared ambition to improve life for future generations rights reserved. Permission from
(see pages 22 and 23). the publisher is required for
reproduction by any means in
whole or in part.
In the series ‘Getting to Know You’, where we speak to senior executives in the Keppel
Group to learn more about them as individuals, we caught up with Mr Chris Ong, CEO
of Keppel O&M, to gain insights into his outlook on business and his views on work, life Printed in Singapore by
and the world (see pages 50 and 51). Image Printers Pte Ltd.
We hope you enjoy your read of Keppelite.
Keppelite Editor
Keppelite I Issue 3 / 2018
Sustaining Growth
4 Sustaining Growth
Forging ahead
Bolstered by its multi-business strategy and geographical diversification, Keppel
Corporation continued to deliver robust performance in 1H 2018. Keppelite
reproduces the speech by Mr Loh Chin Hua, CEO of Keppel Corporation, at the
Company’s 2Q & 1H 2018 briefing to media and analysts.
The 3rd of August will mark achieved a net profit of anniversary, we will be giving awarded over the past
Keppel Corporation’s 50th $583 million, an increase of out a special dividend of year. In June this year, the
anniversary. Over the past 38% compared to the same 5.0 cents per share. The Energy Maritime Associates
five decades, starting from period in 2017. Our Group interim dividend and special estimated that there are 235
a small shipyard, the Group continued to deliver strong dividend will be paid out to projects in various stages of
has expanded, diversified results in 1H 2018, despite shareholders on 7 August study potentially requiring
and transformed itself, as continuing challenges in the 2018. a floating production or
we seized opportunities and Offshore & Marine (O&M) storage system. Of these,
overcame myriad challenges business. We remain focused on 62 are in the bidding or final
in our growth journey. improving the overall quality design stage.
Economic Value Added for of our earnings. Recurring
Today, Keppel is an eco- the period was $275 million. income contributed In short, the recovery of the
system of companies working On an annualised basis, our $130 million or 22% of our O&M business is expected
closely together to provide Return on Equity was 9.9%. net profit in 1H 2018. to continue, but at an
solutions for sustainable incremental pace.
urbanisation. Whether it We had free cash inflow of OFFSHORE & MARINE
is the search for energy $886 million in 1H 2018, There is growing optimism Against a challenging
through our rigs and vessels, compared to the inflow of in the O&M industry, with backdrop, our O&M Division
the provision of solutions for $204 million in 1H 2017. Brent crude prices hovering made a net loss of $40 million,
gas or renewables, reliable above US$70 per barrel. compared to a net profit
infrastructure such as power, Our net gearing was 0.40x However, the rig market of $11 million in 1H 2017.
waste-to-energy or water at end-June 2018 vs 0.46x continues to be weighed This was mainly due to
treatment plants, high at end-December 2017. down by a supply overhang. lower work volume, lower
quality built environments, We paid out $254 million Rig utilisation has improved, contribution from associated
or physical and digital cash to shareholders in May but day rates have remained companies and higher taxes
connectivity, Keppel is well 2018 as the final dividend stagnant. in overseas operations.
placed to meet the market’s for FY 2017.
needs. Nevertheless, in regions Keppel Offshore &
Taking into account the such as the UK sector of Marine (Keppel O&M) has
Our multi-business Group’s better performance, the North Sea, the Middle significantly reduced its
strategy and geographical including the improvement East and Southeast Asia, overheads in the last few
diversification have enabled in our cash flow and net we are seeing more rig years, due to the extensive
the Company to remain gearing, the Board has tender activities. In Brazil rightsizing it has undertaken.
resilient, despite cyclical approved an interim dividend and Mexico, international oil This has helped the company
headwinds in some of our of 10.0 cents per share for companies are also expected achieve an operating profit
businesses. 1H 2018, higher than the 8.0 to increase investments in of $14 million in 1H 2018
cents per share for 1H 2017. the oil and gas sector. in spite of the lower volume
FINANCIAL In addition, to thank of work.
PERFORMANCE shareholders for their trust There has also been an
For the first six months and support on the occasion increase in the number of As at end-June 2018, we
of 2018 (1H 2018), we of Keppel Corporation’s 50th floating production projects have secured over $1.2 billion
Keppelite I Issue 3 / 2018
Sustaining Growth 5
of new orders, slightly vessel for FueLNG, our joint delivered a Floating underpinned by en bloc
more than the new orders venture with Shell. Production Storage and sales as well as higher
secured for the whole of Offloading (FPSO), a dual- contributions from home
2017. In 2Q 2018 alone, we Major deliveries fuel LNG tug and two sales in Singapore and China.
clinched $680 million worth Keppel O&M’s net orderbook jackups to Borr. Hilli Episeyo,
of contracts. was $4.6 billion as at end- the world’s first converted In line with our capital
June 2018, excluding our floating liquefaction vessel recycling strategy, Keppel
The new contracts secured projects for Sete Brasil, which Keppel developed Land announced the sale of
were for two new jackups compared to $3.9 billion as in partnership with Golar, two residential developments
for Borr Drilling, as part of a at 31 December 2017. This is has commenced full en bloc in Shenyang and a
five-rig deal worth a total of the first time since 2014 that commercial operation stake in Quoc Loc Phat Joint
US$745 million, two dual- Keppel O&M’s net orderbook offshore Cameroon. This Stock Company in Vietnam
fuel dredgers for Van Oord, has risen for two consecutive has resulted in increasing for a total consideration
a dual-fuel bunker tanker for quarters. market confidence in the of $350 million. We also
Sinanju as well as a Liquefied conversion approach which announced the divestment
Natural Gas (LNG) bunkering In 1H 2018, Keppel O&M adds value with its faster of a commercial project in
time to first LNG production Beijing for a consideration
and competitive pricing. of $396 million. The option
is expected to be exercised in
Since 2015, we have won 3Q 2018.
about $1.8 billion of orders
for our gas solutions, In 1H 2018, our Property
making up about 38% of Division sold about 1,420
all new orders. With our homes, with a total sales
ability to design, develop value of about $770 million.
and integrate solutions These included 800 homes in
across the gas value chain, China and 130 in Singapore.
Keppel aims to be the gas The property market in
industry’s preferred partner. Vietnam remains promising,
The growing adoption of and we expect more homes
LNG as a marine fuel, driving to be sold in Ho Chi Minh
demand for newbuilds, City as new projects are
conversions and upgrades, launched later this year.
also augurs well for the We have also received
business. positive response in other
markets such as in Indonesia
The Division is also actively and India, where we sold 150
seeking opportunities in and 225 homes respectively.
production assets, specialised
vessels, gas solutions, Over and above these
floating infrastructure and homes sales, we also sold
offshore renewables. three residential projects in
Zhongshan and Shenyang
PROPERTY i n 1 H 2 0 1 8 w h i c h a re
Our Property Division made equivalent to another 11,100
a net profit of $603 million homes sold en bloc.
for 1H 2018, more than
three times the $192 million
In 2Q 2018, Keppel FELS delivered its second jackup rig, built to Keppel’s renowned KFELS achieved in 1H 2017, Continues on page 6...
Super B Class design, to Borr Drilling
Keppelite I Issue 3 / 2018
6 Sustaining Growth
...continued from page 5.
We expect to recognise profits Positioned for growth key cities in China, namely $66 million, up 16% year-
from the sale of some 6,900 For over 20 years, the Group Beijing, Shanghai, Tianjin, on-year, mainly due to the
units of overseas homes has expanded regionally and Wuxi and Chengdu. dilution gain following
worth about $2.4 billion, invested in key Asian cities. Keppel DC REIT’s private
to be recognised upon In some cities, we enjoy a Riding on our experience placement exercise as well
completion, from 3Q 2018 first mover advantage and and track record in these as higher contribution from
through 2021. have built up a sizeable cities, we intend to expand Environmental Infrastructure
landbank. We are in an our presence in the Jing- and Infrastructure Services.
In our residential pipeline, we enviable position where we Jin-Ji (Beijing-Tianjin-Hebei)
have about 50,000 homes, have many options across region, with Beijing and The new projects under
of which over 16,000 units a number of markets, T ianjin as focus cities, development are making
are ready for launch from which help us mitigate the the Yangtze River Delta steady progress. The Keppel
now till end-2020. impact of cooling measures, region with Shanghai and Marina East Desalination
whether in China or Wuxi as focus cities, and Plant (KMEDP), for which
In our commercial portfolio, Singapore. in the growing Chengdu Keppel Infrastructure has
we have about 1.5 million metropolis. We are a 25-year Water Purchase
square metres of gross floor China and Vietnam are key also actively exploring Agreement with the PUB, is
area, about two thirds of markets for the company, opportunities in the Greater close to 50% completion.
which is under development. where rapid urbanisation Bay Area, with Guangzhou
As the commercial projects and a fast growing middle and Shenzhen as focus cities. Meanwhile, the Hong
are progressively completed, class are driving demand Kong Integrated Waste
they will provide steady for high quality homes. In Over in Ho Chi Minh City, Management Facility
recurring income for the the past few years, we have Vietnam, we will also (HKIWMF) is in the design
Group. focused our attention on five explore opportunities along and engineering phase, and
the eastern and southern is expected to contribute
corridors, which are to our bottom-line starting
supported by infrastructure from next year.
investments.
Stable and recurring income
We will continue our efforts from Infrastructure Services
to achieve faster asset turns. contributed revenue of about
Keppel Land is evolving to $70 million in 1H 2018. This
become a multi-faceted is expected to grow further
developer that is not just with the commencement
focused on acquiring land of long-term operations &
and building homes, but maintenance contracts for
also on developing a sterling the KMEDP in 2020 and
portfolio of commercial HKIWMF in 2024.
properties. We may also
acquire completed assets On our data centre business,
which are cash-flow several deals are in the
generating and add value pipeline and we will share
through asset enhancement. d e t a i l s w h e n t h e y a re
finalised.
INFRASTRUCTURE
The Infrastructure Division INVESTMENTS
continues to grow as a Our Investments Division
steady pillar of earnings. made a net loss of $46 million
With over 1,500 launch-ready units in Vietnam for the rest of 2018, Keppel Land is well-
positioned to tap demand of the growing local market It achieved a net profit of for 1H 2018, compared to
Keppelite I Issue 3 / 2018
Sustaining Growth 7
Solutions also signed an SHAPING THE FUTURE:
MOU with Singapore 50 & BEYOND
Technologies Engineering To conclude, the Keppel
(ST Engineering) to Group is working hard to
l e v e r a g e e a c h o t h e r ’s seize opportunities, not
expertise and resources in just through growing each
the design and application vertical, but also through
of smart city masterplans close collaboration between
and technologies. This our business units, as we
includes the customisation provide solutions to meet
and application of ST the needs of sustainable
Engineering’s solutions in urbanisation. Reflecting our
Saigon Sports City in Ho Chi commitment to not only do
Minh City. Beginning with well, but also to do good,
Vietnam, where Keppel has Keppel Corporation became
a strong presence and track a signatory of the United
record, the partnership may Nations Global Compact in
also be extended to other May. We have also made a
With the acquisition of Keppel DC Singapore 5 by Keppel DC REIT, the Group has 19 data markets. public pledge on the actions
centres across Asia Pacific and Europe
that the Group will take to
T h i s y e a r, w e a re a l s o address climate change.
a net profit of $163 million of aggregate lettable area. celebrating the 10th We are determined to have
in 1H 2017, as a result of With this addition, Keppel anniversary of the Eco- a positive impact on the
the share of losses from DC REIT’s assets under City. During his visit to community, wherever we
associated companies management will increase to the Eco-City earlier this operate. This is how Keppel is
and fair value losses on approximately $1.94 billion, month, Singapore’s Deputy forging ahead, and shaping
investments. Unlike in with 15 data centres across Prime Minister Teo Chee the future. keppelite
1H 2017, there have also Asia Pacific and Europe. Hean witnessed the launch
been no land sales in the of the city centre, which
Sino-Singapore Tianjin Eco- The first half of 2018 also marks a new phase in
City (Eco-City) so far this saw us actively pursue the development of the
year. opportunities to advance Eco-City. W ith growing
our integrated master economic vibrancy and a
Keppel Capital continues to development business under wider range of amenities,
provide steady contributions Keppel Urban Solutions. In we expect the Eco-City
to the Group, and to seek April, Keppel Corporation to become increasingly
opportunities to expand signed a Memorandum attractive both to
its asset classes and of Understanding (MOU) companies and residents,
investor base, focusing on with Filinvest Development and to continue being a
areas which harness the Corporation to explore long-term contributor to
capabilities of the Keppel cooperation opportunities the Keppel Group. Our joint
Group. i n t h e l a t t e r ’s s m a r t venture, Sino-Singapore
and sustainable urban Tianjin Eco-City Investment
Meanwhile, Keppel DC REIT development projects in the and Development Co., Ltd.,
has acquired Keppel DC Philippines. expects to continue land
Singapore 5 which will boost sales in 2H 2018, to meet
its footprint in Singapore To e x p a n d i t s s u i t e o f the strong demand for
to nearly 300,000 sf solutions, Keppel Urban homes in the Eco-City.
Keppelite I Issue 3 / 2018
8 Sustaining Growth
Resilient performance
Mr Chan Hon Chew, CFO of Keppel Corporation, presented the Company’s financial
performance at the 2Q & 1H 2018 results briefing to media and analysts. Keppelite
reproduces his speech.
In the second quarter of FINANCIAL PERFORMANCE
2018 (2Q 2018), the Group
recorded a net profit of $m 2Q 2018 2Q 2017 % Change 1H 2018 1H 2017 % Change
$246 million, which was
Revenue 1,523 1,554 (2) 2,993 2,802 7
44% higher than the second
quarter of 2017 (2Q 2017). Operating Profit 257 149 72 725 333 118
Profit before Tax 281 215 31 711 504 41
Correspondingly, Earnings
per Share (EPS) increased to Net Profit 246 171 44 583 423 38
13.6 cents, and Economic EPS (cents) 13.6 9.4 45 32.2 23.3 38
Value Added (EVA) was
* 2Q & 1H 2017 financial figures have been restated following the adoption of the new financial reporting framework, Singapore Financial
a positive $89 million Reporting Standards (International).
compared to a negative
$34 million in the same lower share of profits from Keppel Bay and Highline higher share of associated
quarter last year. associates. Residences, which has been companies’ profits and lower
sold out, as well as the net interest expense. Last
2Q 2018 FINANCIAL After tax and non-controlling absence of revenue from year, the O&M Division’s
HIGHLIGHTS interests, net profit was 44% The Glades as compared to pre-tax profit also benefited
T h e G r o u p ’s r e v e n u e higher at $246 million, the same quarter last year. from a $12.6 million gain
for 2Q 2018 was 2% or translating to an EPS of on divestment of
$31 million lower than 13.6 cents. I n f r a s t r u c t u re D i v i s i o n Keppel Verolme.
2Q 2017. Lower revenues achieved a 24% growth
from Property and 2Q 2018 SEGMENTAL in revenue as a result of The Property Division
Investments divisions were REVIEW increased sales in the power registered a $122 million
partially offset by higher In 2Q 2018, the Group and gas businesses and increase in pre-tax profit
revenues from Offshore earned total revenues of progressive recognition of due mainly to en bloc sales
& Marine (O&M) and $1.5 billion, 2% lower than revenue from the Keppel of development projects,
Infrastructure divisions. 2Q 2017. Marina East Desalination namely The Seasons in
Plant (KMEDP) project. Shenyang, Hunan project
Despite lower revenues, the The O&M Division reported in Shenyang in China,
Group’s operating profit a 35% increase in its top- The Group recorded and Quoc Loc Phat Joint
for the quarter increased line as a result of revenue $281 million of pre-tax profit Stock Company which
by 72% or $108 million, to recognition in relation to for 2Q 2018, 31% higher holds land in Thu Thiem
$257 million, boosted by en the jackup rigs sold to than 2Q 2017. New Urban Area in Ho Chi
bloc sales of development Borr Drilling, partially Minh City, Vietnam, and
p ro j e c t s i n C h i n a a n d offset by lower volume of The O&M Division’s pre- fair value gain on Nassim
Vietnam. work. tax loss for 2Q 2018 was Woods in Singapore, which
$11 million as compared has been designated for
Profit before tax at Revenue from the Property to $15 million profit in redevelopment for sale.
$281 million, however, Division saw a 55% decline 2Q 2017. This was due These are partially offset
increased by a lower margin due to lower revenues from mainly to lower operating by lower contribution from
of 31%, due mainly to China projects, Corals at profits, partially offset by property trading projects.
Keppelite I Issue 3 / 2018
Sustaining Growth 9
The Infrastructure Division
reported a 26% increase
in pre-tax profit due mainly
Net Profit & EPS
to dilution gain following
the change of interest Net profit (S$m) EPS (Cents)
in Keppel DC REIT, and
higher contributions from
1,846 1,885 102.3 103.8
Environmental Infrastructure
and Infrastructure Services. 1,525 84.0
685 726 38.0 39.9
This was partly offset by
405 22.3
lower contribution from
Energy Infrastructure and 457 414 363 784 815 25.3 22.9 20.0 44.8
43.2
share of loss at Keppel 143 128 7.9 6.9
583 32.2
Infrastructure Trust. 347 406 397 225 264 19.2 22.3 21.9 12.4 14.6
13.6
246
205 171 11.3 9.4
357 339 360 337 19.8 18.7 19.8 18.6
The Investments Division 211 252 11.6 13.9
recorded a $39 million * *
decrease in pre-tax profit
due to share of losses from 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q
associated companies in * Excludes one-off financial penalty from global resolution and related costs
2 Q 2 0 1 8 a s c o m p a re d
to their share of profit in
2Q 2017.
period was an inflow of Higher revenues from O&M the divestment of stakes in
After tax and non-controlling $886 million, compared to and Infrastructure divisions property trading projects in
interests, the Group’s net an inflow of $204 million were partially offset by lower China.
profit increased by 44% in 1H 2017, due mainly revenues from the Property
or $75 million, with the to proceeds from the en and Investments divisions. After tax and non-controlling
Property Division being bloc sales of development interests, net profit was 38%
the top contributor to the properties. Operating profit at higher at $583 million.
Group’s earnings, followed $725 million was 118% or Similarly, EPS increased by
by the Infrastructure Division. Consequently, net gearing $392 million higher than the 38% to 32.2 cents.
improved from 0.46x at the corresponding period last
1H 2018 FINANCIAL end of 2017 to 0.40x at the year. Higher profits recorded 1H 2018 SEGMENTAL
HIGHLIGHTS end of June 2018. in Property and Infrastructure REVIEW
Compared to the first six divisions were partially offset For 1H 2018, the Group
months of 2017 (1H 2017), We are pleased to announce by lower profits from O&M earned total revenues of
net profit for the first an interim cash dividend and Investments divisions. close to $3 billion, 7% higher
six months of 2018 of 10 cents per share for than last year.
(1H 2018) was 38% higher 1H 2018, as well as a special Profit before tax at
at $583 million. cash dividend of 5 cents $711 million, however, O&M Division recorded an
per share to commemorate increased by a lower margin increase in revenue due
EPS increased by the same Keppel’s 50th anniversary of 41% due mainly to mainly to revenue recognition
extent to 32.2 cents. since its incorporation. lower share of profits from in relation to the jackup rigs
Annualised Return on associates. In 1H 2017, sold to Borr Drilling. This
Equity (ROE) also increased The Group earned a total the Group benefited from was partially offset by lower
to 9.9%, while EVA was revenue of almost $3 billion the Sino-Singapore Tianjin volume of work.
higher at $275 million. in 1H 2018, an increase Eco-City’s (Eco-City) sale of
of 7% or $191 million three land parcels, as well
Free cash flow for the compared to 1H 2017. as the share of gains from Continues on page 10...
Keppelite I Issue 3 / 2018
10 Sustaining Growth
...continued from page 9.
32.2 cents. In 1H 2018,
ROE & Dividend annualised ROE increased
(Excluding one-off global resolution & related costs) to 9.9%.
Our interim and special
Additional Additional special cash distributions to our
dividend in specie cash dividend shareholders for this period
30.0% ~9.5cts/share 5.0 cts/share 100
90 will be 10 cents per share
25.0%
80 and 5 cents per share
19.5% 70 respectively.
20.0% 18.8%
60
15.0% 14.2% 50 FREE CASH FLOW
48 9.9% 40 Cash flow from operations
10.0% 40 was $325 million in 1H 2018,
6.9% 6.9% 30
34
20 up from $245 million in
5.0% 22
20 1H 2017.
10
10 12 12 10
0.0% 8 8 0
FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 1H 2018 After accounting for working
ROE Interim Dividend Full-Year Dividend capital changes, interest
and tax, net cash inflow
from operating activities was
$357 million, as compared
Revenue from the Property Division’s pre-tax profit last The Investments Division to an inflow of $127 million
Division dropped by 2%, due year also benefited from a registered pre-tax losses of last year. This was due
mainly to lower revenue from $12.6 million gain on $35 million as compared mainly to lower working
the hotels and resorts, as divestment of Keppel t o a p re - t a x p ro f i t o f capital requirements in the
well as the property services Verolme. The Division’s $185 million last year as O&M Division.
segments. operating margin for a result of the absence of
1H 2018 was 1.5%, write-back of provision for Net cash generated from
Infrastructure revenues c o m p a re d t o 3 . 5 % i n impairment of investment investing activities amounted
increased by 23%, led 1H 2017. and the share of losses of to $529 million, comprising
by increased sales in the associated companies in divestment proceeds and
power and gas businesses In the Property Division, 1H 2018, as compared to the d i v i d e n d i n c o m e f ro m
and progressive revenue pre-tax profits increased by share of profits in 1H 2017. associated companies
recognition from the KMEDP 198% due mainly to en bloc This was mainly due to the totalling $833 million. This
project. sales of development projects absence of sale of three land was partly offset by net
in China and Vietnam, fair parcels in the Eco-City. repayment of the advances
The Group recorded a pre- value gain on Nassim Woods, from associated companies
tax profit of $711 million for which has been designated After tax and non-controlling of $239 million.
1H 2018, 41% higher than for redevelopment for sale, i n t e re s t s , t h e G ro u p ’s
1H 2017. as well as higher contribution earnings increased by 38% As a result, there was
f ro m p ro p e r t y t r a d i n g to $583 million, with the an overall cash inflow of
This was despite O&M projects. The increase was Property Division being $886 million for 1H 2018,
Division registering pre- partially offset by lower share the top contributor to the as compared to an inflow of
tax losses of $26 million as of profits from associates. Group’s earnings, followed $204 million last year. keppelite
compared to pre-tax profits by the Infrastructure Division.
of $13 million last year, arising Pre-tax profit from
from lower operating profits I n f r a s t r u c t u re D i v i s i o n The Group’s net profit of
and lower contribution from was relatively stable at $583 million for 1H 2018
associated companies. O&M $74 million. translated to an EPS of
Keppelite I Issue 3 / 2018Sustaining Growth 11
In conversation
Keppelite shares highlights of management’s responses to key questions from the
media and investment community at the Company’s 2Q & 1H 2018 results briefing on
19 July 2018.
Q: Are you seeing more the notice to proceed has changes to your on whether we will change
enquiries for your been extended to end-2018, Singapore residential those plans but we will
floating liquefied natural for Golar and Ophir to look launch pipeline and continue to monitor the
gas (FLNG) conversion for an alternative investor. In redevelopment plans? market closely.
solution after the the meantime, the ship is in LCH: The property cooling
delivery of the first unit? the yard and we are doing measures announced in July Q: Can you comment on
Can you give an update some preparatory works. As 2018 are still playing out the weaker home sales
on the status of the for Gimi, we are working and we expect an impact in China?
second and third units? closely with Golar and BP, on market sentiments. We LCH: The cooling measures
CO: Hilli Episeyo having and we expect to receive the have a few properties in our have had an impact but they
achieved first gas has notice to proceed by the end landbank such as Nassim have affected the markets
increased the confidence of the year. Woods and Keppel Towers. d i ff e re n t l y. T h e s u p p l y
and interest in the market As these are redevelopment demand fundamentals are
for the conversion solution. Q: Given the recently projects, we have some still quite positive in most of
That has literally taken out introduced property optionality in terms of when the markets where Keppel
the technical risk of the cooling measures, we choose to launch them.
solution itself. For Gandria, have you made any It is too soon to comment Continues on page 12...
Keppel’s senior management addressed questions from media and analysts at the Company’s 2Q & 1H 2018 results briefing and webcast
Keppelite I Issue 3 / 201812 Sustaining Growth
...continued from page 11.
Land China is active in and
has projects. Most of these
markets would have a supply
that is usually about less than
two years of demand.
In the course of the last two
and a half decades, we have
built up a lot of capabilities
in different markets through
our regional drive. This is
an advantage that Keppel
Land has. As markets
become subject to potential
policy risks and conditions
change, some windows
Upon completion in 2020, Keppel Marina East Desalination Plant will add to the Group’s recurring income base
will open while some will
close. Keppel, through our
experienced local teams, That said, even when we sell and Construction (EPC) $12 million from the sale of
in countries like China, units individually, the reality profits from the Keppel Keppel GE last year, so the
Vietnam, Indonesia and is that earnings will still be Marina East Desalination variance (net profit) is not
Singapore, to name just lumpy for overseas projects Plant (KMEDP). We also as big, but at the operating
a few, has optionality in that are accounted for by expect to start recognising level, it’s quite a significant
terms of where to invest, the completion method. EPC profits from the Hong improvement.
and where to launch our At the end, assuming that Kong Integrated Waste
projects. we can sell out during Management Facility next Q: The Chinese media
construction, we can only year. When these projects reported that there were
Q: Excluding the one- recognise the revenue and are completed, they go into no bids received for
off gains from en bloc profit when the project the long-term operations the land put up for sale
sales, Property profit is completed. So from a and maintenance (O&M) in the Sino-Singapore
for 2Q 2018 would have financial point of view, there phase, and the O&M fees Tianjin Eco-City (Eco-
declined year-on-year. is very little difference. The will keep on layering on top City) earlier this year.
How should we think only difference is that we of one another. Are there plans to lower
about Property in the can’t just rely on en bloc the bid price in order to
future? sales all the time, we will OTG: For KMEDP, we are secure sales this year?
LCH: We look at the entire still have to continue to look about 50% complete, LCH: The Eco-City is now
picture so that would include at property launches and at and as for the Hong Kong more mature, connectivity
the en bloc sales which are selling units the traditional project, we will recognise has improved, and with
more opportunistic. We way. the contributions starting more amenities, it offers
can choose to sell the units from next year. From the quite a nice environment
individually, or we could, Q: What do you see as operations of Environmental for residents. The Eco-City
where the opportunity a sustainable growth Infrastructure and is probably one of those
arises, sell the project en level for Environmental Infrastructure Services, the markets that is considered
bloc. To us, that is also sales. Infrastructure? operating income for the quite healthy. There will
We do not see that as a LCH: We are seeing very first half was very strong. be good opportunities
one-time gain. Of course, en steady contributions from We have contributed about for us to continue to sell
bloc sales are a bit lumpier Keppel Infrastructure as an additional $15 million land in the Eco-City, and
compared to unit by unit we start to recognise compared to last year. We the Sino-Singapore Tianjin
sales. Engineering, Procurement had a one-time gain of Eco-City Investment and
Keppelite I Issue 3 / 2018Sustaining Growth 13
Development Co., Ltd. is adding new geographies, 14.6%. That is actually on the infrastructure side.
expecting to launch some new partnerships and quite a good return and we With urbanisation, there
land for sale in the second potentially new asset classes have also set a target of a are a lot of requirements for
half of the year. such as in the alternative through-cycle ROE of about different urban solutions.
assets space. We will 12%. This would be on There are also opportunities
There was a site put up announce some of these as fairly conservative gearing for Keppel Capital, but these
for bidding in 1H 2018. and when there are further levels. So it is important that would be a bit less capital-
However, there was the details. we constantly look out for intensive because we tend
expectation that prices opportunities to turn our to work with third party
would go higher than the Q: Recurring income was assets faster. But some of our investors. keppelite
last transacted price in down to $130 million assets in our landbank were
2017, which was already for 1H 2018, from $150 acquired quite a number of LCH – Mr Loh Chin Hua,
quite high. Hence, that million for 1H 2017. years ago. So where there CEO, Keppel Corporation
piece of land was put up What was the reason are opportunities for us CHC – Mr Chan Hon Chew,
at a fairly high valuation. and should we be to recycle, especially if the CFO, Keppel Corporation
As a result, that particular concerned about that? markets are non-core to
site did not attract any CHC: The fall in the recurring us, like what we have seen OTG – Dr Ong Tiong Guan,
bid. This does not mean income was mainly due to in Shenyang, as well as in CEO, Keppel Infrastructure
that there is no interest. the drop in our share of Zhongshan, we will do so. CO – Mr Chris Ong,
The Eco-City is maturing profit in Floatel. In terms of CEO, Keppel Offshore &
quite nicely and the supply the underlying business, the Q: Now that you have Marine
demand dynamics are quite number of vessels on charter a stronger balance
CT – Ms Christina Tan,
positive. There is a shortage this year is three compared sheet, where are we
CEO, Keppel Capital
of homes and there is also to four last year. As you looking at in terms of
strong demand, so I am know, the offshore & marine capital allocation? Is
quite confident we will see industry has been facing it more on Property
a land sale in 2H 2018. quite a bit of headwinds, or other segments? If
which led to a fall in the it is Property, which
Q: Will you be able number of vessels on charter segments are we
to comment on the this year. looking at?
current internal rate of LCH: We do not generally
returns (IRRs) for the Q: Where are the do top-down allocation
funds under Alpha? potential asset recycling as a Group as that can
Where do you see opportunities within be dangerous. Of course,
further opportunities the property portfolio we have a general sense
to grow Assets Under where management of where we want to see
Management (AUM)? feels have achieved fair our balance sheet being
CT: The Alpha Funds have value? deployed. We tend to look
d o n e w e l l . We d o n o t LCH: As part of our goal to at things more from bottom
disclose the IRRs as our make Keppel Land a multi- up to see where the best
investors are private funds. faceted property player with deals are for the Group
Some of you might have a focus on achieving the that can provide the best
read about the potential highest returns, we have to risk-adjusted returns. We
sales and divestments in the look closely at the property continue to see opportunities
papers, I think generally we book to get the best returns. on the property side. We
have performed well for the Over the 10 years to end- can replenish some of our
investors. On where we see 2017, the average return landbank, where and when
opportunities to grow AUM; on equity (ROE) for Keppel it makes sense. We can
we are always looking at Land per annum was about also look at opportunities
Keppelite I Issue 3 / 201814 Sustaining Growth
Pursuing expansion
For the second quarter basis, net profit grew 60% higher operating costs to efforts to transform the
ended 30 June 2018, year-on-year to $35.4 million support new developments Logistics business and grow
Keppel Telecommunications for 1H 2018. The increase in the data centre and the Data Centre business
& Transportation (Keppel was due mainly to dilution logistics businesses. are progressing on track, as
T&T) reported a net profit of gain following Keppel DC we position Keppel T&T to
$26.0 million, a 138% rise REIT’s private placement Mr Thomas Pang, CEO of seize growth opportunities
year-on-year. On a half-year exercise, partly offset by Keppel T&T, said, “Our from the digitalisation wave
for long term, sustainable
growth.”
During the quarter, the Data
Centre Division achieved
close to 60% committed
occupancy at Keppel DC
S i n g a p o re 4 w h i l e t h e
Logistics Division marked
steady progress with
UrbanFox, having secured
more than 110 brands for its
online marketplace.
Keppel T&T achieved Earnings
per Share of 4.6 cents
Keppel T&T’s Logistics Division has further extended its service offerings beyond B2B to capture the B2C segment through a full suite of omni- for 2Q 2018 and 6.3 cents
channel logistics and channel management solutions
for 1H 2018. keppelite
Stable distributions
Keppel REIT has delivered price per unit of $1.10 as at have been fixed. As at the at 99.3%. The weighted
stable distributable income 30 June 2018. end of 2Q 2018, aggregate average lease expiry for the
(DI) of $48.3 million for leverage remained stable portfolio was 5.2 years.
2Q 2018, bringing DI for The REIT has no refinancing at 38.6%.
1H 2018 to $96.6 million, requirement until 2019 and Looking ahead, the Manager
higher than the DI of the Manager is proactively As part of its proactive capital will continue to drive
$95.5 million for 1H 2017. managing the refinancing management strategy, the operational excellence by
The Manager declared a of loans that are due in Manager also intends to maintaining a tenant-centric
Distribution Per Unit (DPU) 2019. The all-in interest rate initiate unit buy-backs leasing approach and a
of 1.42 cents for 2Q 2018, was 2.77% per annum with pursuant to the mandate prudent capital management
bringing the total DPU for interest coverage ratio at obtained at the annual strategy to deliver stable
1H 2018 to 2.84 cents. This 4 . 3 t i m e s . To m i t i g a t e general meeting in April returns to unitholders. keppelite
translated to an annualised exposure to interest rate 2018. As at end June 2018,
distribution yield of 5.2% volatility, the rates of 77% the portfolio committed
based on the market closing of the REIT’s total borrowings occupancy remained high
Keppelite I Issue 3 / 2018Sustaining Growth 15
Sustainable returns
Keppel Infrastructure
Tr u s t ( K I T ) a n n o u n c e d
a Distribution Per Unit of
0.93 cents for the second
quarter ended 30 June 2018.
Group revenue for 1H FY18
was $303.2 million, 3.5%
lower than 1H FY17, mainly
from lower fees earned at
Basslink due to the service
outage that occurred from
25 March to 5 June 2018
as a result of an incident
caused by a third party
contractor. The electricity
interconnector returned to
service on 5 June 2018.
Keppel Merlimau Cogen also City Gas recognised higher revenue in the first half of FY 2018, compared to the same period last year
contributed lower revenue
in 1H FY18 due to a recent ended 30 June 2018 was higher contributions from primarily attributable to
unplanned maintenance in $72.5 million, comparable City Gas. distributions to unitholders,
2Q FY18. This was partially to the same period last partially offset by marked-
offset by higher revenue year. Profit attributable to N e t A s s e t Va l u e P e r to-market movements
from City Gas. unitholders of the Trust in Unit as at 30 June 2018 of derivative financial
1H FY18 was lower, mainly decreased to 28.8 cents instruments and profit
KIT’s distributable cash due to lower revenue at f ro m 2 9 . 9 c e n t s a s a t recognised for the period.
flows for the first half Basslink, partially offset by 31 December 2017, keppelite
Steady growth
Higher contribution from well as higher finance costs 2.77 cents per unit for the its DPU-accretive acquisition
maincubes Data Centre and and Manager’s fees. period from 1 January to of Keppel DC REIT’s fourth
assets in Singapore and 15 May 2018 as well as a asset in Singapore – Keppel
Dublin boosted Keppel DC Distribution Per Unit (DPU) distribution of 0.85 cents DC Singapore 5 (formerly
REIT’s distributable income of 3.62 cents was declared per unit for the period from Kingsland Data Centre). This
for the first half ended for 1H 2018. This was 4.0% 16 May to 30 June 2018, brings Keppel DC REIT’s
30 June 2018 to $43.9 million higher year-on-year after post private placement of portfolio to 15 data centres
from $41.9 million one year excluding the one-off capital 224.0 million new units. with combined assets
ago. This was partially offset distribution recorded in under management of
by lower rental income from 1Q 2017. The DPU comprises During the period, the $1.94 billion. keppelite
Basis Bay Data Centre, as an advanced distribution of Manager also completed
Keppelite I Issue 3 / 201816 Sustaining Growth
Delivering value
Keppel-KBS US REIT has early lease termination at of assets. In 2Q 2018, average lease expiry was
d e l i v e re d n e t p ro p e r t y Westmoor Center in Denver, the Manager saw positive 3.7 years.
income of US$36.1 million Colorado. leasing momentum with
for the financial period 32 new leases totalling Looking ahead, the Manager
since listing on 9 November Distribution Per Unit for the to more than 222,000 sf is actively pursuing accretive
2017 to 30 June 2018, period from 9 November secured during the period, acquisitions in key growth
exceeding its Initial Public 2017 to 30 June 2018 bringing committed portfolio markets where the REIT has
Offering (IPO) forecast of was 3.82 US cents, 0.5% occupancy to 90.3% as at a presence in, as well as
US$34.8 million by 3.8%. above the IPO forecast of 30 June 2018, compared with other US cities with similar
This higher net property 3.80 US cents, translating to 89.8% as at 31 March 2018. growth characteristics, to
income was supported by an annualised distribution All new leases have built-in capture value and further
overall rental growth, lower yield of 6.77%. annual rental escalations of upsides. The Manager
property expenses and a 2 to 4%, providing organic remains committed to deliver
one-off compensation The Manager continues growth visibility for the sustainable distributions
income recognised in to capitalise on the steady portfolio. As at 30 June and strong total returns to
1Q 2018 arising from an demand for its portfolio 2018, the portfolio weighted unitholders. keppelite
Homes in the Gardens
The Garden Residences, homebuyers a choice of
K e p p e l L a n d ’s l a t e s t different views, including
condominium project, unblocked views of the
received positive response surrounding neighbourhood.
during its launch in end-
May 2018. Developed in The development’s facilities
collaboration with Wing include a 75-metre swimming
Tai Holdings, The Garden pool with a swim-up spa and
Residences is located along an aqua gym, a tennis court,
Serangoon North View and is a 24-hour gym, an outdoor
nestled within lush gardens, fitness zone, al fresco dining
with many units enjoying an facilities and a gourmet
expansive view of the private kitchen. Residents can also
landed estate of Serangoon grow and harvest herbs and
Gardens. spices in the community
The Garden Residences received positive response during its launch in end-May 2018
garden, or enjoy a stroll
The project features five along the scenic boardwalk.
15-storey towers that will transport infrastructure station and bus interchange
yield a total of 613 units, The well-established provides connectivity to all are also nearby. Within a one
comprising 1- to 5-bedroom Serangoon Garden Estate parts of Singapore – major kilometre radius are notable
units to cater to the different located nearby boasts a wide expressways like CTE and PIE educational institutions
needs of homebuyers. All range of dining, shopping are a few minutes’ drive away such as Rosyth School and
units are of North-South and lifestyle options. In from The Garden Residences, Lycée Francais de Singapour.
orientation, offering addition, established and the Serangoon MRT keppelite
Keppelite I Issue 3 / 2018Sustaining Growth 17
Keppel sells five existing rigs to
Borr Drilling
Keppel FELS entered into an original owners. Borr Drilling to further improve our cash opportune time for us to
agreement with Borr Drilling will pay a first instalment flow, minimise the holding grow our fleet of highly
Limited (Borr Drilling) on of US$288 million and the risks of the projects, and capable jackup rigs as the
16 May 2018 for the sale of remaining amounts are clear several of the deferred market is showing signs of
five existing jackup rigs for a payable within five years orders.” recovery from the bottom of
total value of approximately from the respective delivery the business cycle.”
US$745 million. dates of each individual Mr Svend Anton Maier,
rig, on a seller’s credit with CEO of Borr Drilling, In addition to the above
These are existing jackup rigs interest at market rates. added, “Our partnership five rigs, Borr Drilling had
which are currently being The rigs are scheduled to be with Keppel is crucial as it also previously taken over
built by Keppel FELS to the delivered progressively from enables us to provide the the contracts for five KFELS
KFELS B Class designs. Of the 4Q 2019 to 4Q 2020, with market with the latest in Super B Class jackup rigs that
five rigs, two were originally one rig to be delivered in jackup rig technology, safety Keppel FELS was building
built for Grupo R (being the 2019 and four rigs in 2020. and operability. This is an for Transocean. keppelite
Cantarell V and Paraiso II rigs)
and one for Falcon Energy Mr Chris Ong, CEO of
Group. Keppel FELS has Keppel Offshore & Marine
terminated the contracts with (Keppel O&M), said, “The Second of ten rigs to
the respective owners. Two
other rigs were being built
agreement with Borr Drilling
demonstrates that rig
Borr Drilling delivered
in anticipation of potential owners continue to look for On 13 June 2018, Keppel been achieved with an
demand. reliable, high quality rigs, FELS delivered the state- excellent safety record
such as the KFELS B Class, of-the-art jackup rig, while maintaining Keppel
The total price of the five rigs to maximise efficiency and SKALD, to Borr Skald Inc, a FELS’ hallmark quality
excludes the down payments productivity. This is a win- subsidiary of Borr Drilling, standards.”
which had already been win agreement for all parties safely, on time and on
made by the respective and enables Keppel O&M budget. It is the second Built to Keppel’s renowned
jackup rig that Keppel has KFELS Super B Class design,
delivered to Borr Drilling SKALD is capable of
following the delivery of operating in water depths
the SAGA earlier this year, of up to 400 feet and
with another eight on can drill to 35,000 feet.
order. Equipped with cantilever
skid-off capabilities, with
Mr Chris Ong, CEO of a maximum combined
Keppel O&M, said, “We cantilever load of
have leveraged the 3,700 kips, and high
synergies of working capacity hook loads of
on multiple rigs for two million pounds, the
Borr Drilling to improve KFELS Super B Class has
efficiency and ensure an tremendous horse power
on time and on budget during drilling operations.
With the latest agreement, Borr Drilling has ordered a total of 10 jackup rigs from Keppel delivery. This has also
FELS, including the SKALD jackup (pictured) which was delivered in June 2018
Keppelite I Issue 3 / 201818 Sustaining Growth
Singapore’s first VLCC scrubber retrofit
Keppel Shipyard has (Conversions & Repairs), more sustainable measures meet the requirements of
c o m p l e t e d S i n g a p o re ’s Keppel Offshore & Marine, to reduce the impact on the the International Maritime
first scrubber unit retrofit said, “We are pleased to environment, Keppel Shipyard Organisation’s (IMO) new
installation on a Very Large be selected by our long- stands ready with a suite 0.5% global sulphur cap on
Crude Carrier (VLCC). standing customer for their of advanced, cost-effective fuel content effective from
first scrubber retrofit job. As and quick solutions that can 1 January 2020.
Mr Chor How Jat, MD the industry looks to adopt meet the requirements of
our customers in reducing Keppel Shipyard expedited
emissions. As a leading ship the scrubber retrofit on
repair yard, we have a strong the VLCC, and achieved
track record undertaking completion in less than a
retrofits and conversions month – safely and within
projects.” budget. In order to meet the
tight deadline and minimise
Known technically as exhaust downtime for the vessel,
gas cleaning systems, Keppel Shipyard maximised
scrubbers treat the vessel’s the preparatory work
exhaust gas with chemical by fitting the completed
reagents to remove sulphur scrubber and supporting
oxide compounds (SOx). This systems in one prefabricated
allows the vessel to discharge module before the vessel
With the implementation of IMO’s new 0.5% global sulphur cap on fuel content effective a minimum amount of SOx arrived in the yard in early
from 1 January 2020, ship owners are actively pursuing solutions, such as the installation of
scrubbers, to reduce emissions into the environment and June this year. keppelite
Data centre portfolio expansion
Keppel DC REIT has neutral colocation data Management, said, “As The acquisition was funded
strengthened its foothold centre that hosts leading a key data centre hub in by the net proceeds raised
i n S i n g a p o re w i t h t h e internet enterprise and IT Asia, Singapore continues from the private placement
acquisition of a 99% interest services clients. Completed to see strong demand from of 224 million new units in
in Kingsland Data Centre in phases starting from multinational firms for Keppel DC REIT announced
for $295.1 million. The 2015, the facility is located quality data centre space. i n M ay 2 0 1 8 , a nd t he
acquisition, completed in in Jurong with approximately The addition of KDC SGP remaining net proceeds
June 2018, saw the facility 98,769 sf of net lettable 5 will allow Keppel DC of its pro-rata preferential
renamed to Keppel DC area. The facility’s IT power is REIT to establish a strategic offering that was launched
Singapore 5 (KDC SGP 5) fully committed. In addition, presence in the western part in October 2016. keppelite
with Keppel Data Centres the facility’s committed of Singapore and diversify
appointed as the master occupancy is 84.2%, with its offering to clients. KDC
lessee and facility manager. the vacancy being offices. SGP 5 will boost the REIT’s
f o o t p r i n t i n S i n g a p o re
KDC SGP 5 is a 5-storey, M r C h u a H s i e n Ya n g , to nearly 300,000 sf of
p u r p o s e - b u i l t , c a r r i e r- CEO of Keppel DC REIT aggregate lettable area.”
Keppelite I Issue 3 / 2018Sustaining Growth 19
Environmental accolades
In line with its mission of BCA AWARDS 2018
providing solutions for
sustainable urbanisation, BCA Quality Excellence Award, Quality Champion (GoldPLUS) – Keppel Land
Keppel considers
environmental factors BCA Universal Design Mark GoldPLUS Award – Corals at Keppel Bay
during the planning and BCA Green Mark Platinum Award – Keppel DC Singapore 3
d e s i g n o f i t s p ro p e r t y
developments and data BCA Green Mark Gold Award – Park Avenue Heights
centres. Bearing testament
to the Group’s commitment
to sustainability, business In addition, Bugis Junction 18 May 2018. This makes OUTSTANDING GREEN
units received recognition Towers was also re-certified the David Malcolm Justice CONTRIBUTION AWARD
at award ceremonies in a s a B C A G re e n M a r k Centre, which Keppel REIT Keppel Land China
Singapore and overseas. Platinum building. owns 50% interest in, received the Outstanding
the first 6 Star Green Star Green Contribution Award
BCA AWARDS 6 STAR GREEN STAR project in Perth. at China’s 7th Finance
On 20 May 2018, Keppel RATING Summit which took place
garnered four awards at the The Green Building Council The Green Star on 20 July 2018 in Beijing,
Building and Construction of Australia (GBCA) environmental rating system China. Inaugurated in
Authority (BCA) Awards awarded the David Malcolm evaluates the environmental 2012, the Outstanding
2018 for its properties in Justice Centre the 6 Star design and performance of Green Contribution Award
Singapore and overseas. This Green Star – Performance Australian buildings based recognises companies for
includes the coveted Quality Certified Rating, which on criteria like energy and excellence in environmental
Champion GoldPLUS Award, represents ‘World water efficiency, indoor stewardship. keppelite
which was conferred on Leadership’ in sustainable environment quality and
Keppel Land. building operations, on resource conservation.
Bearing testament to the Group’s commitment to sustainability, Keppel garnered four awards at the BCA Awards 2018 for its properties in Singapore and overseas
Keppelite I Issue 3 / 201820 Sustaining Growth
Bolstering leadership
and reporting functions
of Keppel REIT and its
subsidiaries.
A seasoned finance
professional in the business
o f R E I Ts a n d t r u s t s ,
Ms Kang has been with the
Keppel Group since 2005.
She has held various senior
positions, including as CFO
of the Trustee-Manager of
Keppel Infrastructure Trust
Ms Cindy Lim Mr Matthew Pollard Ms Kang Leng Hui and Financial Controller of
Keppel Capital, which was
her last held position.
KEPPEL INFRASTRUCTURE As the MD of Keppel Urban infrastructure sectors. His
TRUST Solutions since 1 January previously held positions Ms Serene Foong has
Ms Cindy Lim has been 2018, Ms Lim leads the include Founder and MD succeeded Ms Kang as
appointed as a non- unit to harness the Group’s of Capital Partners Group, the Financial Controller of
independent, non-executive diverse capabilities to seize H e a d o f I n f r a s t r u c t u re Keppel Capital with effect
director on the Board of the opportunities in integrated (Asia) at Arcapita Bank and from 9 June 2018. keppelite
Trustee-Manager of Keppel master development, Chairman of China-based
Infrastructure Trust with tapping on the megatrend Honiton Energy Group. He
effect from 18 July 2018. of rapid urbanisation. also held senior positions
in the energy and utilities
Ms Lim is concurrently Mr Matthew Pollard has teams of Citigroup, Dresdner
Director of Group Corporate been appointed CEO of the Kleinwort, Enron Corp and
Development at Keppel Trustee-Manager of Keppel Power Pacific Co.
Corporation and MD of Infrastructure Trust with
Keppel Urban Solutions. effect from 1 July 2018. As KEPPEL REIT
As the Director of Group CEO of the Trustee-Manager, Ms Kang Leng Hui has
Corporate Development, he will work closely with the been appointed as CFO of
Ms Lim focuses on Board to set the strategic Keppel REIT Management
operationalising the Group’s direction of the company. with effect from 9 June
goals, working closely with 2018. In her new role,
business units across the Prior to joining Keppel Capital Ms Kang will be responsible
Group to identify, assess as MD, Infrastructure, in for overseeing Keppel REIT’s
and pursue opportunities November 2017, Mr Pollard financial functions. This
for synergy, and maximise held numerous leadership includes the accounting,
value creation through positions in the energy, taxation, treasury, capital
collaboration. power, renewables and management, compliance
Keppelite I Issue 3 / 2018You can also read
