Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 
OFFON

MarketScreener Homepage  >  Equities  >  SINGAPORE EXCHANGE  >  Keppel Corporation Limited    KPLM   SG1U68934629

KEPPEL CORPORATION LIMITED (KPLM)
My previous session
Most popular
  Report  
SummaryChartsNewsAnalysisCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsOfficial PublicationsSector newsTweets

Keppel bribery fine shines spotlight on peer Sembcorp, shares slide‍​

share with twitter share with LinkedIn share with facebook
share via e-mail
0
12/26/2017 | 04:33pm CEST
FILE PHOTO - Hard hats for visitors during the Keppel FELS delivery ceremony of their semi-submersible accommodation rig to Floatel at their shipyard in Singapore

SINGAPORE (Reuters) - Singapore oil rig builder Keppel Corp's agreement to pay a $422 million (£315.8 million) fine to resolve charges it bribed Brazilian officials, including people at state-owned oil company Petrobras, sent its shares tumbling and triggered a decline in smaller rival Sembcorp Marine Ltd on Tuesday.

In the deal announced by the U.S. Justice Department on Friday, Keppel Offshore & Marine Ltd agreed to pay a combined penalty to resolve investigations by authorities in the United States, Brazil and Singapore.

The company entered into a deferred prosecution agreement while U.S. subsidiary Keppel Offshore & Marine USA Inc pleaded guilty in federal court in Brooklyn to conspiring to violate the U.S. Foreign Corrupt Practices Act. The case is part of Brazil's largest-ever corruption case, "Operation Car Wash", that has engulfed both the corporate and political worlds in the past few years.

Market attention in Singapore turned to Sembcorp because in plea testimony made public in Brazil in March 2015, a former Petrobras executive said a representative of Sembcorp's Jurong Aracruz shipyard was involved in bribe payments.

It was unclear whether Sembcorp faced a probe by authorities in the United States, Brazil and Singapore.

Asked if it was investigating Sembcorp Marine, Singapore's Corrupt Practices Investigation Bureau said it does not comment on the existence or any investigations.

The U.S. Justice Department also said it neither confirms nor denies the existence of an investigation.

A Sembcorp representative said: "We do not comment on news reported by the market or media. As with our usual practice, in all matters relating to our company, we will make the necessary announcements as and when required."

In February 2015 Sembcorp Marine said it did not make any illegal payment, noting that the company's policies and contracts prohibit bribery and unethical behaviour. After the plea testimony became public the following month, the company said it was "unable to comment on the truth or otherwise of these allegations", and that internal investigations were continuing.

DOWNGRADED TO "SELL"

"The market is likely to also focus on whether SMM (Sembcorp Marine) will face a similar penalty," OCBC Investment Research said in a report on Tuesday.

Shares of Keppel (>> Keppel Corporation Limited) and Sembcorp Marine (>> Sembcorp Marine Ltd) both initially slid more than 3 percent on Tuesday, though Keppel recovered partially to end down 2.4 percent. Sembcorp dropped 3.6 percent.

OCBC maintained a "buy" rating on Keppel and downgraded Sembcorp to "sell".

"Investors are just basically positioning themselves in the event that something like this may happen to them (Sembcorp)," said UOB Kay Hian analyst Foo Zhiwei.

Analysts were optimistic that Keppel can cope with the fine, which the firm said on Saturday would be a "one-off" and be provided for in the current financial year.

"While the stock could be under pressure in the near term, we see this resolution as removing a key overhang on the stock," Nomura analyst Abhishek Nigam said in a report. The company's fundamentals, especially in offshore and marine, continued to improve, aided by higher oil prices, the analyst said. Nomura maintained its "buy" recommendation.

(Reporting by John Geddie; Additional reporting by Nate Raymond in Boston; Editing by Muralikumar Anantharaman, Martin Howell and Jeffrey Benkoe)

By John Geddie

Stocks mentioned in the article
ChangeLast1st jan.
KEPPEL CORPORATION LIMITED -0.89% 6.66 End-of-day quote.-9.26%
PETROLEO BRASILEIRO SA PETROBRAS 0.00% 26.73 End-of-day quote.60.78%
SEMBCORP MARINE LTD 0.00% 1.89 End-of-day quote.2.72%
share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news on KEPPEL CORPORATION LIMITED
12:33pKEPPEL : Telecommunications & Transportation Ltd Unaudited Results for the Third..
PU
12:13pKEPPEL : Unaudited Results of Keppel-KBS US REIT for the Financial Period since ..
PU
10/16KEPPEL : Infrastructure trust unaudited results for the third quarter ended 30 s..
PU
10/16KEPPEL : Unaudited Results of Keppel DC REIT for Third Quarter and Nine Months E..
PU
10/15KEPPEL : Unaudited Results of Keppel REIT for the Third Quarter and Nine Months ..
PU
10/11KEPPEL : Data Centres, Huawei, Xiangjiang and Cloud Engine ink cooperation agree..
PU
10/10STOLT NIELSEN S A : Keppel to build another two LNG carriers for Stolt-Nielsen w..
AQ
10/08STOLT NIELSEN S A : Keppel to Build 2 LNG Carriers for Stolt-Nielsen Worth aroun..
AQ
10/07KEPPEL : to build another two LNG carriers for Stolt-Nielsen worth around S$105 ..
PU
10/04KEPPEL : Singapore International Robo Expo 2018 returns against Exponential Chan..
AQ
More news
News from SeekingAlpha
10/08Upcoming Bidding War For Singapore Mobile Network Provider? 
07/19Keppel Corporation's (KPELY) CEO Loh Chin Hua on Q2 2018 Results - Earnings C.. 
07/19Keppel Corporation Limited ADR 2018 Q2 - Results - Earnings Call Slides 
07/19Keppel reports Q2 results 
04/19Keppel Corporation's (KPELF) CEO Loh Chin Hua on Q1 2018 Results - Earnings C.. 
Financials (SGD)
Sales 2018 6 459 M
EBIT 2018 1 029 M
Net income 2018 1 063 M
Debt 2018 5 459 M
Yield 2018 4,29%
P/E ratio 2018 11,91
P/E ratio 2019 11,29
EV / Sales 2018 2,74x
EV / Sales 2019 2,24x
Capitalization 12 212 M
Chart KEPPEL CORPORATION LIMITED
Duration : Period :
Keppel Corporation Limited Technical Analysis Chart | MarketScreener
Full-screen chart
Technical analysis trends KEPPEL CORPORATION LIMITED
Short TermMid-TermLong Term
TrendsNeutralNeutralBearish
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus OUTPERFORM
Number of Analysts 16
Average target price 8,59  SGD
Spread / Average Target 29%
EPS Revisions
Managers
NameTitle
Chin Hua Loh Chief Executive Officer & Executive Director
Boon Yang Lee Non-Executive Chairman
Hon Chew Chan Chief Financial Officer
Jacob Tong General Manager-Group Information Systems
Heng Tan Tow Non-Independent Non-Executive Director
Sector and Competitors
1st jan.Capitalization (M$)
KEPPEL CORPORATION LIMITED-9.26%8 881
3M COMPANY-15.48%116 284
HONEYWELL INTERNATIONAL1.85%115 996
GENERAL ELECTRIC COMPANY-29.40%107 074
SIEMENS-13.47%97 838
ILLINOIS TOOL WORKS-21.34%43 821