April 2014 www.kepcorp.com/ekeppelite
Building on collective strength 4
Reaffirming business ties 16
Choice employer 32
Moving in closer to China
MCI (P) 153/01/2014 11 16
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Contents
SUSTAINING GROWTH Building on collective strength 4 Green honours 30
Fortifying core competencies 8 Roles revealed
Strong fundamentals 10 Spurring Innovations Uplifting ideas 31 Creditable progress for Keppel T&T 11 EMPOWERING LIVES Higher overseas earnings for Keppel Land 12 Choice employer 32 Joining the family Keppel Reit’s income rises 14 Gleanings on governance 33 Stable start for K-Green Trust 15 Chill-out evening Reaffirming business ties 16 Keppelites Abroad Marks of sustainability 18 Rewarding journey 34
Investors’ choice 19 NURTURING COMMUNITIES Celebrating Singapore 35 Quality recognition Amazing maritime hunt Special FOCUS Near market, near customer in China 20 Power hour 36
Cultivating China ties 23 Promoting eco solutions 37 Insights into Keppel 24 Pedal for charity
Configured for growth 26 Stirring experience 38 Spirited away Meeting of minds in Asia 27 Keppel Volunteers Resolute friendships 28 Splashes of colour 39 YY on national safety council BACK PAGE Demonstrations of commitment 29 First for Brazil 40
Cover image: Keppel Offshore & Marine (Keppel O&M), through its wholly owned subsidiary, FELS Offshore Pte Ltd, signed a management services agreement on 9 April 2014 with Titan Petrochemicals Group Limited (Titan) and Titan Quanzhou Shipyard Co. Ltd (TQS) to manage the TQS shipyard. Celebrating the partnership are (from right to left) Mr Wong Kok Seng, MD of Keppel O&M (Offshore) and Keppel FELS, Mr Chow Yew Yuen, CEO of Keppel O&M, Dr Xiong Shaohui, Chairman of Guangdong Zhenrong Energy Co. Ltd., Mr Loh Chin Hua, CEO of Keppel Corporation and Chairman of Keppel O&M, and Mr Zhao Xu Guang, Chairman of Titan.
Published for people in the Keppel Group by the Group Corporate Communications Division, Keppel Corporation Limited, 1 HarbourFront Ave, #18-01 Keppel Bay Tower, Singapore 098632. Printed by Image Printers Pte Ltd, Blk 1002, Redhill Industrial Estate, Jalan Bukit Merah, #03-12, Singapore 159456.
Editorial Advisor Wang Look Fung
Editor Say Huan Yuan
Editorial Committee Ang Lai Lee, Candice Low, Carol Huang, Cheryl Goh, Chew Chong Peng, Dale Lai, Donald Sng, Eileen Tan, Elizabeth Widjaja, Eva Ho, Frances Teh, Grace Chia, Hayley Teo, Hoo Yao Lin, Ivana Chua, Lee Chin Siang, Lee Wan Jun, Liang Hui Hui, Priscilla Chong, Razali Maulod, Roy Tan, Sam Neo, Serena Toh, Sue Ann Huang, Teri Liew, Tracy Pham, Woon Pek Yong, Yolanda Guo, Yu Zehan
Keppelite I April 2014 CO REG NO: 196800351N Editorial
Foresight and flexibility
At Keppel’s Harbourfront headquarters in many drilling sites have been using the MLT-116C. Singapore, cable cars ferrying tourists are a fixture So, understanding the need for quick market of the scenery. Naturally, I’ve always associated acceptance, Keppel’s engineers designed its new them with holidaymakers. So I was intrigued to rig with similar leg spacing for easier deployment learn about the world’s first cable car system used at existing sites. for daily commute at the Lee Kuan Yew World City Prize 2014 media conference held recently. Adding features to the legs, jack and fixation systems, Keppel incorporated into its rig a further In Medellín, Colombia, the Metrocable provides versatility to accommodate different operational a physical link between less developed hillside and customer needs. These proved key to the communities and the main city, and this has design’s widespread success, and the resultant catalysed urban revitalisation. The cable cars KFELS B Class rig design is now the industry plug informal, poorly accessible settlements into standard for jackup rigs. the formal economy, enabling a flow of people, knowledge, goods and services that transformed a Just as the Metrocable was innovatively used to city that used to be reputed for drugs and crime. unlock the potential of the hillside communities, Keppel leveraged the legacy of an older design By reappropriating a mode of transport typically to gain market acceptance for its new and better associated with leisure to serve the basic offering. Since then, Keppel’s suite of offshore infrastructure needs of low-income communities, solutions has grown to suit different environments, the city’s authorities have demonstrated an from the milder Gulf of Mexico to the harsher experimental flexibility that redefined the North Sea. By evolving our capabilities in tandem possibilities for achieving urban revitalisation. with the exigencies of different environments, In recognition of this, Medellín was bestowed we hone our adaptive instincts not only to stay a Lee Kuan Yew World City Prize 2014 ahead, but also to redefine the boundaries of Special Mention. what is possible.
Turning around a city is no mean feat. Whatever Last month, I found myself on board the world’s exists has been established over decades or even largest jackup rig, Maersk Intrepid, during its centuries, so these inherited issues, both good and naming ceremony at Keppel FELS. Looking down bad, have to be accepted as part of the legacy. from a great height, it is easy to forget the legwork But the Medellín example has shown that a little involved in getting up in the first place. flexibility and ingenuity could convert slums into resources and improve lives. Keppel’s brand of tenacity, tempered with flexibility, has helped us battle through tough Likewise, the rise of the KFELS B Class jackup times to emerge a leading provider of solutions drilling rig is story of flexibility and foresight in in the offshore and marine, infrastructure and uncertain times. property industries today. Whether in building rigs, infrastructure facilities or properties, our innate In the late 1990s, the industry was faced with adaptability and relentless efforts at innovation escalating prices and a daunting offshore industry will continue to be defining qualities in our drive downturn. When Keppel was approached to to create value. build the MLT-116C - the most popular rig design at that time - it counter-proposed its more cost- efficient and higher-specification design. But
Keppelite I April 2014 4 Sustaining Growth Growth
Building on collective strength Mr Loh Chin Hua, CEO of Keppel Corporation, discussed the Group’s performance and developments in 1Q 2014 via a “live” webcast on 16 April 2014. Keppelite reproduces his speech.
Uneven Global growth of between 7% Recovery and 7.5% in 2014 as its The year wobbled in with a new leadership works on slow first quarter. Geopolitical structural reforms for better- tensions in Europe and quality growth. Advance elsewhere coupled with estimates by the Ministry of concern over the pace of US Trade and Industry showed tapering have contributed that Singapore’s economy to growing uncertainty in grew 5.1% in the first quarter, emerging markets. The US lower than 5.5% growth in was hit by an unusually harsh the previous quarter. winter but more recently seemed to have emerged Clearly, the global economy with stronger sentiments is not out of the woods. Most and encouraging growth developed economies are still indicators. contending with the spillover effects of the financial crisis, The International Monetary in particular the challenges Fund (IMF) projects a 3.6% of taking appropriate rise in the global economy fiscal and monetary policy this year from 3% in 2013, actions. The IMF, in its world and a 2.8% growth in economic outlook, has the US economy, up from warned that a slower-than- 1.9% last year. Asia is also expected recovery across the demonstrating resilience, global economy could keep Keppel Corporation CEO Mr Loh Chin Hua discussed the Group’s strategic developments at the 1Q 2014 results webcast underpinned by healthy interest rates at historical domestic demand. lows for some time. Real interest rates are expected Europe is turning the corner to increase modestly with My leadership team and I are from recession, although the normalisation of global navigating our way in a business recovery remains patchy, and economic conditions, but environment full of challenges but at a longer period of low inflation will likely be curtailed by the same time we are invigorated by could pose a potential drag the uneven performance in new opportunities out there. We will on the economy. Meanwhile, Europe and slower growth volatility in emerging in China. sharpen our core competencies and economies has increased, look for the niches where we with equity market sell- My leadership team and I can consistently add value to. offs and depreciation of are navigating our way in a Mr Loh Chin Hua local currencies. business environment full of CEO challenges, but at the same Keppel Corporation Closer to home, China has time we are invigorated forecasted a lower GDP by new opportunities out
Keppelite I April 2014 Sustaining Growth 5
there. We will sharpen our for the period was 13.4% America alone, E&P spending orders that we clinched in core competencies and look while Economic Value Added is projected to rise by 13% 1Q 2014 alone. for the niches where we can was $151 million. in 2014, led by countries consistently add value to. such as Mexico. While We are heartened that Business Overview international oil majors are our comprehensive suite Performance tightening their belts, we of offshore and marine Highlights Offshore & Marine believe they will be highly solutions continues to win the Our business divisions We are confident that long- selective about the areas to confidence of new and repeat continued to perform term fundamentals for pull back on. customers. New orders won creditably in the first the offshore and marine in the first quarter amounted three months of 2014, industry remain compelling Jackup rig fundamentals are to about $1.9 billion while contributing to a net profit of and sound. still robust. By 2015, more our net orderbook stands $339 million for the Group. than 220 units of the global at a record of $14.4 billion While this is lower than the Growing global energy jackup fleet will be over 30 as at end-March 2014, with $357 million net profit last demand and a stable oil price years old. The current market visibility into 2019. In the first year, the Group’s operating of above US$100 a barrel for jackups remains tight with quarter, amongst projects we performance has improved. continue to support global utilisation close to 100%. delivered was the Maersk Excluding one-off items from Exploration & Production The ongoing rig-replacement Intrepid, one of the world’s the corresponding period last (E&P) spending, which is still cycle and the shift towards largest jackup rigs and the year, net profit is largely in expected to grow in 2014, premium assets are expected first of three we are building line year-on-year. albeit at a slightly slower to continue supporting the for Maersk. pace of 6% compared to order momentum. This is Annualised Return on Equity 7% the year before. In Latin evident from the five jackup Continues on page 6...
Keppel Offshore & Marine continues to win the confidence of new and repeat customers who have placed new orders worth about $1.9 billion in 1Q 2014
Keppelite I April 2014 6 Sustaining Growth
...continued from page 5.
Group’s strategy to invest in, own and operate competitive energy and infrastructure solutions and services.
In line with this, K-Green Trust has expanded its investment mandate and changed its name to Keppel Infrastructure Trust following its Extraordinary General Meeting on 15 April 2014.
On our Waste-to-Energy business, we are pleased to update that Keppel Seghers has successfully completed the first burn as part of
Keppel Seghers has successfully completed the first burn as part of the commissioning process for Phase 1 of the Greater Manchester Energy- the commissioning process from-Waste Plant for Phase 1 of the Greater Manchester Energy-from- Our Near Market, Near us to populate the Chinese offshore solutions provider Waste Plant. The plant will Customer strategy has market with our suite of for China. be one of the largest and given us a solid head start proprietary solutions while most efficient of its kind in in markets such as Brazil meeting the requirement of Keppel is also building a Europe when its two phases and the Caspian Sea, where building in-country. The yard KFELS N Plus jackup rig for are completed. national oil companies seek will have ultra-large and wide China, scheduled for delivery local content. dry docks which will enable in 1Q 2017. Despite the global economic it to partake in projects such slowdown, Southeast Asian Just last week, we further as the conversion of double I am also happy to share economies have performed strengthened our Near hull vessels into Floating that the lower hull of the well with stable growth Market, Near Customer Production Storage and first DSS™ 38E semi that we rates driven by strong strategy by extending our Offloading (FPSO) units. are building for Sete Brasil domestic demand, resilient footprint into the Chinese Besides ship repair and arrived safely in Angra and consumer spending and market. Keppel Offshore & conversion capabilities, the integration is in progress rising investments. Tapping Marine signed a management yard would also be able with the megablocks being this trend and the growth services agreement for a 30- to construct offshore rigs assembled at our BrasFELS of e-commerce, Keppel year period with the Titan including jackups and yard. The rig is on track Telecommunications & Petrochemicals Group to semisubmersibles (semis). for delivery by end-2015. Transportation (Keppel manage the Titan Quanzhou These facilities will be further Construction is progressing T&T) will expand its logistics Shipyard in Fujian Province. complemented by our other well for the second and third network in Singapore and The agreement is conditional shipyard in China, Keppel semis. China, and continue to on the completion of the on- Nantong, which undertakes assess opportunities for going financial restructuring specialised shipbuilding and Infrastructure new data centres. of Titan and the resumption offshore fabrication. We are shaping our of the trading of its shares infrastructure business for Keppel Datahub 2, a joint on the Hong Kong Stock We are confident that this further growth, sharpening venture project between Exchange. is a win-win partnership our focus on energy and Keppel T&T and Keppel Land, which will enable Keppel related infrastructure. Keppel is on track for completion in Having this yard will enable and Titan to become a major Infrastructure will drive the end-2014. Offering more
Keppelite I April 2014 Sustaining Growth 7
than 6,000 sm of high- developments by investing Keppel Land will monitor committed with a stellar quality data centre space, it is in well-located sites. the market closely to time line-up of tenants from the first newbuilt data centre the launch of Highline diverse sectors. in Singapore to achieve the Seizing opportunities for Residences in Tiong Bahru Platinum Award under the choice sites at good value which is a popular, heritage- Our fund management BCA-IDA Green Mark. in Indonesia, we acquired a rich estate. businesses under Keppel three-ha site in West Jakarta REIT and Alpha Investment Keppel T&T continues to where Keppel Land will Building its commercial Partners form an integral part build up its reputation as develop about 3,000 homes. portfolio in markets of our strategy to provide a a choice provider of high- The acquisition was funded by where it has established source of stable, recurring quality and reliable logistics part of the proceeds from the a foothold, Keppel Land income for the Group. We and distribution services in divestment of Keppel Land’s has about 540,000 sm of remain committed to grow China. Its logistics projects stakes in Jakarta Garden GFA in various stages of our fund management units, in Anhui, Jilin and Tianjin will City and Hotel Sedona development in China, which currently manage be operational in 2015. Manado. We will continue Vietnam and Indonesia. combined assets of about to actively recycle capital for $17.7 billion. Meanwhile, the Tampines higher returns, and weigh all Against policy headwinds, Logistics Hub being developed available opportunities so as Keppel Land sold 714 homes Configured for by Keppel Logistics is also on to maximise value from our in Asia in 1Q 2014, mostly Growth track to be completed in investments. in China. There is sustained 2014 will be challenging early-2015. The new facility interest in our suburban but Keppel is not averse will enable us to meet the In Singapore, with the projects in Shanghai such to challenges. Ours is a anticipated demand for Total Debt Servicing Ratio as Seasons Residence in collective strength and the critical-component logistics, and concerns over interest Nanxiang and The Springdale sum of our parts configures leveraging Singapore’s rate hikes weighing on the in Pudong, as well as for to a cohesive and optimal strategic location to serve market, private residential homes in our township whole which lends itself to the region. demand and pricing are projects, namely Central sustainable growth and value expected to further Park City in Wuxi and creation. We will continue Property moderate in 2014. However, The Botanica in Chengdu. to seize opportunities with Across Asia, rapid urbanisation the demand outlook for prudent financial discipline and rising affluence will new homes over the long Marina Bay Financial Centre and rigorous innovation. drive demand for quality term remains positive with a Tower 3 is one of Singapore’s keppelite housing and office space. resilient Singapore economy largest office towers with Keppel Land will continue and policies to support more than 1.3 million sf of to build its pipeline of population and economic Grade A office and retail residential and commercial growth. space. It is about 96%
The Property division continued to perform creditably in 1Q 2014, achieving a similar pre-tax profit level year-on-year (In picture: Seasons Residence in Nanxiang, Shanghai)
Keppelite I April 2014 8 Sustaining Growth
Fortifying core competencies Keppel Corporation CFO, Mr Chan Hon Chew, presented the Company’s first quarter financial performance and highlighted Keppel’s steadfast focus on fortifying its core competencies and executing its key businesses well. Keppelite highlights excerpts from his presentation.
Group Financial the O&M and Property lower share of associated Segmental Review Highlights divisions. companies’ profit of For the first quarter, the $31 million. Pre-tax Revenue Group’s net profit was Despite registering higher profit for 1Q 2013 had Overall revenue rose by $339 million, 5% below the operating profit, profit benefited from higher profit $237 million or 9%, driven same period last year due before tax was at about recognition from associates largely by the revenue to higher taxation expense the same level as the such as Marina Bay Suites, growth in the O&M and from the Offshore & Marine corresponding period last The Botanica in Chengdu Property divisions. (O&M) division in 2014 and year as this was offset by and FloaTEC. a write-back of tax provision Revenue for O&M improved in the Property division in Keppel Corporation’s FINANCIAL because of higher volume of 1Q 2013. Earnings per HIGHLIGHTS work. We have commenced Share posted a similar revenue recognition on decrease to 18.7 cents, S$m 1Q 2014 1Q 2013 % Change some jobs such as the while annualised Return on Revenue 2,996 2,759 9 second semisubmersible Equity dropped to 13.4% Operating Profit 415 397 5 for Sete Brasil during the and Economic Value Added quarter. Profit before Tax 492 496 (1) was $151 million. Net Profit 339 357 (5) Infrastructure’s drop in Excluding the one-off gains EPS (cents) 18.7 19.8 (6) revenue was due mainly resulting from the reversal of provision due to the sale of the power barge and Property division’s write- back of tax provision from 2013’s first quarter results, the net profit for this quarter is largely in line with the previous year.
Net gearing at the end of the first quarter increased to 14%.
The Group’s operating performance improved with an $18 million or 5% increase in operating profit, led by higher revenue and operating margins from Lower hull of the first DSS™ 38E semisubmersible for Sete Brasil arrived safely at BrasFELS for integration with the remaining blocks
Keppelite I April 2014 Sustaining Growth 9
was $395 million for the quarter.
Staying focused and disciplined W e r e m a i n f o c u s e d on fortifying our core competencies and executing well in our key businesses in O&M, Infrastructure and Property. In our strive for sustainable growth, the Group has been consistently investing in productivity and technological improvements, and sharpening our technology know-how in innovative solutions to provide a better value proposition to
The Group’s net profit was $339 million, 5% below the same period last year due to higher taxation expense from the Offshore & Marine our customers. division in 2014 and a write-back of tax provision in the Property division in 1Q 2013 Our strong balance sheet, coupled with a disciplined to lower revenue from our of provision following the Free cash Flow and proactive investment power and gas business as a completion of the sale of approach, also puts us in good result of lower prices. the power barge business The Group continued to stead to capture attractive in Ecuador. generate good cash flow investment opportunities in Higher contribution from from operations. The first our existing core businesses residential projects in China Pre-tax profit of the quarter saw $478 million of or close adjacencies. We led to an increase in revenue Property division was at cash flow generated from are confident that our for the Property division. the same level as the operations, 11% above the financial discipline and drive previous year. previous year. After taking for execution excellence Pre-tax profit into account working capital and innovation will build a O&M’s pre-tax profit Net profit requirements mainly from stronger Keppel and create improved $32 million or O&M, the top contributor the O&M and Property sustainable shareholder value
12% from higher revenue to the Group’s earnings, divisions, operating cash in the long term. keppelite and operating margins. This increased its net profit by outflow for the quarter was quarter’s operating margin $23 million or 11% compared $336 million. at 14.2% was slightly higher to the same period last compared to 14.0% for the year. $125 million was spent on corresponding quarter in investments and operational 2013. Property reported $19 million capital expenditure mainly or 23% lower net profit for the O&M division. However, Infrastructure’s in the first quarter due to Including dividend income pre-tax earnings posted a higher taxation expense. and divestment proceeds of $21 million or 31% decrease Net profit in the previous $66 million, net cash used in from the same period last year included a write-back investing activities amounted year. Pre-tax profit for the of tax provision arising from to $59 million. first quarter of 2013 was the finalisation of prior years’ higher due to the write-back taxation in Singapore. The resultant cash outflow
Keppelite I April 2014 10 Sustaining Growth
Strong fundamentals Keppelite shares highlights from the Question & Answer session of the 1Q 2014 results webcast.
Q: Could you comment global economic situation. to-long term, the outlook our pricing, payment terms on order enquiries In 2011-2013, investments and fundamentals of our and margins, but we have for shallow and in the FPSO sector recovered property business in China always emphasised on being deepwater rigs – given and doubled that of 2000- remain positive. nimble and delivering quality the commentary by US 2010. Looking ahead, we projects on time. We also offshore drillers about expect quite a strong market As far as competition from the constantly innovate to stay weak day rates – and for FPSOs – last year, we Chinese yards is concerned, ahead. Floating Production delivered four FPSOs and this where there is a growing Storage and Offloading year, we expect to deliver profit pool in any business, AWG: We are confident (FPSO) conversions? between six to eight. you can expect competition about the Chinese property CYY: The shallow water to be intense. Our conditional market in the long term. market is holding up well, Q: What are the key management agreement With rising urbanisation, with Brent and WTI (West reasons for your strong with Titan Petrochemicals growing affluence and Texas Intermediate) crude oil operating margins in Group would allow us access the Chinese government at good levels. The utilisation Offshore & Marine (O&M)? to the otherwise closed spurring economic growth, rate for shallow water rigs is CHC: Firstly, it is the mix in Chinese market. the property sector in still high, hovering between terms of profit recognition China will remain an 96% and 98%. on different projects with CYY: Competition in China interesting and lucrative different margins. Secondly, will always put pressure on business. For the deepwater market, currency also influences the we see a weakening of day margins. The last reason is rates, which have dropped costs. We are always working by about 10%. However, to raise productivity. In 1Q numbers given by oil majors 2014, we have managed to and national oil companies achieve slightly lower costs indicate that they are looking especially in Keppel FELS’ at reserve replacement and yards in Singapore. Having still encouraging Exploration said that, we should not look & Production spending. at margins on a quarter-to- quarter basis, as these can We are keeping a close fluctuate due to the three watch on the number of factors mentioned. rigs being delivered. We believe all newbuild rigs Q: In the near term, are will be absorbed by the you concerned about market in the next one to the economic growth in two years. Fundamentals China and competition of the deepwater market from the Chinese yards? remain strong. LCH: While the growth in China has moderated As for FPSO conversions, downwards in recent years,
there was a slowdown it is still a very good growth Keppel’s expertise in FPSO conversion puts it in good stead to capture opportunities in the in 2000-2010 due to the number and in the mid- market
Keppelite I April 2014 Sustaining Growth 11
Q: Is the Keppel Q: How is the progress expect the current LCH: In 1Q 2014, our O&M Merlimau Cogen (KMC) of the EPC projects? level to persist through division recognised earnings plant generating net LCH: The Doha North project 2014? from overseas where tax profits given the sharp is ready for sewage but CHC: 1Q 2014’s effective rates are much higher. keppelite drop in wholesale we still need to get the tax rate by comparison with electricity prices? commissioning done. We last year is higher due to LCH – Loh Chin Hua, CEO of What is the outlook expect to complete the the write-backs last year Keppel Corporation for Singapore power project by end of this year. by our Property division. CHC – Chan Hon Chew, CFO business in 2014? For the Greater Manchester The effective tax rate is of Keppel Corporation LCH: It is very competitive project, we have completed very much a function of and a lot of supply has come the first burn for Phase 1. the mix in our profits. As CYY – Chow Yew Yuen, CEO onstream, but we have a very We are targeting to complete Keppel has very diversified of Keppel Offshore & Marine new and efficient expansion Phase 1 and 2 by end of businesses which span AWG – Ang Wee Gee, CEO of to the KMC plant with an the year. across many geographical Keppel Land additional 800MW output regions with different tax capacity which will allow Q: Tax rate has picked rates, the mix in net profits us to compete effectively. up during the last two of these businesses will Our market share in the quarters. What is driving therefore have an impact contestable market is also higher tax rate this on the effective tax rate for improving. quarter and should we each reporting period. Creditable progress for Keppel T&T
Keppel Telecommunications However, operating profit and Transportation (Keppel for the division decreased by T & T ) s a w c r e d i t a b l e $0.4 million to $3.2 million. performance from both the Improved performance in logistics and data centre Southeast Asia logistics segments for its first quarter was offset by a slowdown ended 31 March 2014. of trade activities in China and development costs of Its net profit registered a 2.9% logistics projects. increase to $15.4 million, while its revenue grew Construction of the new 21.6% to $48.7 million. logistics facility in Tampines Earnings per Share were is progressing on schedule. 2.8 cents, up from 2.7 cents In China, the operations of a year ago. Sanshui and Wuhu ports continue smoothly while Revenue for the logistics construction works for The development of Keppel Datahub 2 in Singapore is on track division rose 20.4% to ongoing projects in Tianjin, $34.6 million, driven by Jilin and Anhui provinces are to higher occupancy and occupancy, capitalising on the higher warehousing, under way. new customers. Operating strong market demand. The distribution and port profit improved by $1.2 development of its new data operations income from Revenue from Keppel T&T’s million to $6.0 million. The centre facility in Singapore, the new subsidiaries that data centre segment rose group’s data centre facilities Datahub 2, is on schedule.
Keppel T&T acquired. 17.9% to $14.1 million due continue to enjoy near full keppelite
Keppelite I April 2014 12 Sustaining Growth
Higher overseas earnings for Keppel Land
Keppel Land achieved a Keppel Land’s FINANCIAL HIGHLIGHTS 37.6% year-on-year (y-o-y) increase in revenue to ($m) Quarter Ended % Change $284.9 million for 1Q ended 31 March 2014 31 March 2013 31 March 2014, due largely Turnover 284.9 207.0 37.6 to contributions from China residential projects. Pre-tax Profit 112.2 93.0 20.6 Net Profit 87.7 96.6 (9.2) Despite a higher pre-tax profit of $112.2 million, Net Debt/Equity Ratio (x) 0.40 0.31 29 the group’s net profit of NTA/Share ($) 4.58 4.11 11.4 $87.7 million fell 9.2% from $96.6 million a year ago due to the absence of a tax writeback. Moderate home office market remains positive Central Park City, in Wuxi, sales amidst cooling supported by leasing from as well as Seasons Residence At the net profit level, measures regional financial institutions and The Springdale in contribution from property In Singapore, residential and companies from the the suburban districts of trading was 37.4% lower take-up fell due to the e-commerce, commodities, Shanghai, remained strong. at $35.6 million due to mortgage restrictions legal and insurance sectors. These contributed to 62% of the completion of Phase 6 imposed by the Total Debt Commitment at Marina Bay the total units sold in China o f T h e B o t a n i c a a n d Servicing Ratio framework, Financial Centre Tower 3 for the quarter. Marina Bay Suites which and the Lunar New Year rose to 96% as at contributed significantly a holidays. Keppel Land sold end-March 2014, compared Following the strong take-up year ago, while property 54 residential units in 1Q with 86% a year ago. due to pent-up demand in investment was 8.9% 2014, slightly fewer than 2013, the group’s residential higher at $29.3 million on the 59 units sold a year Steady home sales sales in China slowed down in improved contributions from ago in the same quarter. in China the first two months of 2014 Keppel REIT and Marina Bay Sales came mainly from In 1Q 2014, the group sold due to the winter season as Financial Centre Tower 3. The Glades, which has sold 660 homes overseas, of well as the Lunar New Year Fund management profit about 84% of the 200 which 570 units were from holidays. Sales have since was up 14.9% to $13.1 launched units as at end- China. While the number picked up in March 2014. million due mainly to March 2014. of units sold in China was The government’s plans to higher contributions from lower compared with the achieve 60% urbanisation Alpha Investments Partners The group’s CBD-fringe 850 units sold in 1Q 2013, level by 2020 will help to (Alpha). condominium project, the achieved sales value was sustain residential demand. Highline Residences, located higher at RMB 890 million Overseas net profit rose in the heritage enclave of compared with RMB 840 Strengthening 63.8% to $26.7 million on Tiong Bahru and close to million a year ago, due to presence in growth stronger contributions from the MRT station, will be the sales of more higher-end markets China residential projects, launch-ready in 2Q 2014. projects. In line with its commitment namely The Springdale and to strengthen its foothold 8 Park Avenue in Shanghai. The outlook for the Grade A Take-up at the township, in Indonesia with a focus
Keppelite I April 2014 Sustaining Growth 13
Keppel Land’s overseas net profit rose 63.8% on stronger contribution from China residential projects, namely The Springdale and 8 Park Avenue (in picture) in Shanghai on Jakarta, Keppel Land units in the first quarter. management by Alpha and Targeting continued acquired a prime residential Phase 1 of The Estella in Keppel REIT, the group’s growth site along the Outer Ring Ho Chi Minh City is about pan-Asian commercial real Looking ahead, Keppel Road in West Jakarta 95% sold as at end-March estate investment trust, Land will maintain its focus which will yield about 2014. The company will amounted to $17.7 billion as and scale up in the two 3,000 homes and ancillary capitalise on the market at end-March 2014. Keppel core markets of Singapore shophouses. Targeted recovery to launch more REIT maintained 100% and China, and strengthen at homebuyers in the units at Riviera Point, committed occupancy for its position in the growth middle-income segment, located in District 7, a its Singapore portfolio and markets of Indonesia and the first phase of the popular residential suburb achieved 99.8% committed Vietnam. The group will development is expected with international schools occupancy for its entire leverage its expertise and to be launched for sale in and shopping amenities. portfolio as at 31 March experience as a leading 1H 2015. 2014. developer to grow its Proactive Fund commercial portfolio The residential market in Management Alpha has acquired a site in overseas. It will actively review Vietnam is recovering with The group’s fund Taipei for the development its portfolio to maximise an improving economy and management business of luxury apartments returns from projects through lower interest rates. The continues to perform through its Alpha Asia the recycling of capital for group sold more than 60 well. Total assets under Macro Trends Fund II. higher returns. keppelite
Keppelite I April 2014 14 Sustaining Growth
Keppel REIT’s income rises
Keppel REIT recorded its KEPPEL REIT’S FINANCIAL HIGHLIGHTS highest quarterly distributable income of $55.1 million for $’000 1Q 2014 1Q 2013 % Change 1Q 2014, which is a 5.5% Property Income 46,782 41,432 12.9 y-o-y increase. This translates to a Distribution per Unit Net Property Income 39,468 34,418 14.7 (DPU) of 1.97 cents for the Share of Results of Associates 15,985 14,198 12.6 quarter, and an annualised Income Available for Distribution 55,104 52,242 5.5 DPU of 7.99 cents. Distribution to Unitholders1 55,104 52,242 5.5 On the back of improved Distribution per Unit (“DPU”) (Cents) performance from Ocean For the Period/Year 1.97 1.97 – Financial Centre and Annualised 7.99 7.99 – Prudential Tower, as well Distribution Yield (%) 7.02 5.93 as additional income Notes: from 8 Exhibition Street (1) Distribution to Unitholders is based on 100% of the taxable income available for distribution. in Melbourne which was (2) The yield is based on the market closing price per unit of $1.140 as at the last trading day, 31 March 2014. acquired in August 2013, (3) The yield is based on the market closing price per unit of $1.360 as at the last trading day, 28 March 2013. property income increased 12.9% y-o-y to $46.8 million. Keppel REIT’s all-in interest As a result, net property rate for the quarter was income rose by 14.7% y-o-y 2.18% and interest coverage to $39.5 million. ratio was 5.4 times. To mitigate interest rate P r o a c t i v e p o r t f o l i o volatility, an approximate management resulted in 68% of total borrowings another quarter of 100% have been fixed. committed occupancy for the Singapore portfolio and Looking ahead, the Manager 99.8% committed occupancy will continue to focus on for the entire portfolio. maintaining the strong occupancy for its portfolio The Manager of Keppel of properties and proactively REIT continued to secure manage leases due for rent
early refinancing of its review and renewal. keppelite loans during the quarter. All loans due in 2014 have been refinanced. A total of $275 million and $75 million of borrowings due in 2015 and 2016 respectively have also been refinanced early, extending the weighted average term to expiry of borrowings to 3.9 years. 8 Chifley Square, a 34-storey Grade A office tower in Sydney, Australia, has achieved 97.0% committed occupancy and currently has only half a floor remaining to be leased
Keppelite I April 2014 Sustaining Growth 15
Stable start for K-Green Trust
K-Green Trust (KGT) $12.7 million, 0.2% higher operations was $14.4 million saw group revenue for compared to 1Q 2013. for the quarter. Earnings per its first quarter ended unit is 0.56 cents, up from Expanded 31 March 2014 standing at KGT also registered a 9.4% 0.51 cents a year ago. mandate, $16.8 million. Operation and increase in profit to $3.5 maintenance income was million. Cash generated from This was partly due to lower new name electricity costs, which fell During the Extraordinary 16.4% to $1.6 million after General Meeting held measures were taken to on 15 April 2014, mitigate their volatility by the proposal for the fixing the price. The solar expansion of KGT’s photovoltaic system on investment mandate Keppel Seghers Ulu Pandan was approved with NEWater Plant, which strong support by the generates electricity for unitholders. plant consumption, also contributed to savings. T h e e x p a n d e d investment mandate The underlying performance allows the Trust to align of the three assets in KGT’s its focus with the wider portfolio is expected to business activities of its remain stable. All three assets reorganised Sponsor, have long-term concession Keppel Infrastructure agreements with Singapore (KI). KI currently has statutory bodies. three core business platforms in Gas-to- Income from Senoko Waste- Power, Waste-to-Energy to-Energy (WTE) Plant and and X-to-Energy. Keppel Seghers Tuas WTE Plant are derived mainly In line with the expanded from capacity payments, investment mandate, which offer a stable source of with effect from 16 April income with little correlation 2014, KGT was renamed to economic or demographic Keppel Infrastructure fluctuations. Trust. The Trust’s short trading name on the Income from Keppel Seghers Singapore Exchange NEWater Plant is derived in was changed from equal parts from availability “K-Green” to “Keppel payments and from NEWater Infra Tr” with effect output payments (both from 21 April 2014. The include power revenue). ticker symbol, “LH4U”, Demand for NEWater is remains unchanged. subject to demand from PUB, Singapore’s National The underlying performance of the three assets in the Trust’s portfolio is expected to remain stable Water Agency. keppelite
Keppelite I April 2014 16 Sustaining Growth
Reaffirming business ties Given Keppel’s long standing business ties with the Philippines, the Group has over the years been playing an active role in supporting efforts to further grow the economic linkages between Singapore and the Philippines. Mr Loh Chin Hua, CEO of Keppel Corporation, led a Singapore Business Mission in early April to reaffirm the strong business ties between the two countries.
The Keppel team, led by Mr Loh Chin Hua (front row fifth from right), CEO of Keppel Corporation and Mr Tony Chew (front row fourth from right), Chairman of Singapore Business Federation and Board Director of Keppel Corporation, joined Singapore President Dr Tony Tan and Mrs Mary Tan (front row fifth and fourth from left respectively) for a group photo at a reception at the Singapore Embassy in Manila on 3 April 2014
Keppel and the Philippines the country’s economy explore opportunities in and logistics, and consumer go way back – over four has performed creditably the country. Sensing this services sectors. decades – to 1975 when under the administration of high level of enthusiasm, Keppel made its very first President Benigno Aquino the Singapore Business Over the course of two days, overseas foray, starting in recent years. In 2013, the Federation, supported by the Singapore delegates went shipyard operations in Philippines was one of the IE Singapore, organised a on site visits and attended a Batangas. Today, Keppel best performing economies 14-member Philippines– briefing on the trade and Batangas Shipyard is one in Asia, with a GDP growth Singapore Business Council investment opportunities in of two established yards rate of 7.2%. The country (PSBC) delegation to Manila the Philippines. A roundtable which Keppel owns in the has also been upgraded to from 2 to 5 April 2014 dialogue session, led by the Philippines, along with investment grade rating by with the aim of advancing PSBC Co-Chairman for the Keppel Subic Shipyard. top credit rating agencies business relations between Philippines Mr Guillermo Beyond the marine sector, such as Moody’s and the two countries. L u c h a n g c o , w a s a l s o Keppel has also invested Standard & Poor’s. arranged for the Singapore into the finance and property Mr Loh Chin Hua, who is delegates and their Philippine sectors in the country. Business dialogues the PSBC Co-Chairman for counterparts to share ideas Already, the Philippines’ Singapore, led the Singapore and exchange views. While the Philippines has strong economic performance delegation, which comprised gone through ups and downs has reignited interest among business leaders from the The site visits included a one- in the past few decades, Singapore companies to infrastructure, transportation day trip to the Clark-Subic
Keppelite I April 2014 Sustaining Growth 17
Corridor, which is envisioned Purisima, and Philippine growth and development reminded the teams to stay to be an international Trade and Industry Secretary of the Philippines. He added focused on achieving good service and logistics centre Mr Gregory Domingo. that Keppel will continue to safety performance with in Southeast Asia. At Subic, seek opportunities to expand zero incidents. the Singapore delegates In an address delivered at the and upgrade its two yards in visited Keppel Subic Shipyard lunch, Mr Loh said, “We can the country. Community visit located in Zambales, where certainly see a renewed sense Beyond business interests, they were briefed on the of optimism and confidence, Engaging Keppelites Keppel also contributes to yard’s progress on the and these are all very positive During his visit, Mr Loh the communities where it Depletion Compression for the Philippine economy. also took the opportunity operates. The Keppel-GK Eco Platform project for Shell It augurs well for Singapore to visit Keppel Batangas Village in Bauan, a 60-unit to be deployed in the businesses coming to the Shipyard located in the housing estate for needy Malampaya gas field, as Philippines. Special Economic Zone families in the community well as the yard’s upgrading in Bauan, Batangas. To was jointly developed by programme, which includes “Singapore corporate brand better understand the the local government of the new 1,500-tonne gantry names such as SingTel, Ascott, yard operations, Mr Loh the Municipality of Bauan, crane. Somerset, YCH, Charles walked the yard with Keppel Gawad Kalinga (GK) and & Keith and Breadtalk are Batangas’ management Keppel. Networking lunch doing well in the Philippines. team and was briefed on A key highlight of the PSBC The Keppel Group also has the status of the yard’s Taking a reprieve from business mission was the a deep and entrenched repair projects and facilities business-related meetings, PSBC CXO Lunch on 4 April presence in the country. upgrading programme. Mr Loh, accompanied by his 2014 involving 40 Philippines Philippine companies like wife, visited the Eco Village. business leaders. The Guest Jollibee and Ayala Corp At the end of the visit, Mr and Mrs Loh were warmly of Honour was President are also making profitable M r L o h r a l l i e d t h e welcomed by its residents and Dr Tony Tan Keng Yam who inroads into the Singapore management teams of their children. Completed in was in the Philippines on a market.” both Keppel Batangas mid-2012, the Eco Village is state visit. The lunch was Shipyard and Keppel Subic home today to more than also attended by various In interviews with the Shipyard to ride on their 300 residents, and boast distinguished guests Philippine media following achievements and strive to amenities such as a learning including Secretary to the the lunch, Mr Loh reiterated improve productivity so that centre for preschool pupils Philippine Cabinet Mr Jose Keppel’s commitment to the yards can continue to and the Nelson Yeo Hall, Rene Almendras, Philippine continue to participate in and complement the Singapore where community-based
Finance Secretary Mr Cesar contribute to the economic yards effectively. Mr Loh also activities are held. keppelite
Mr Leong Siew Loong (left), President of Keppel Batangas Shipyard briefing Mr Loh Chin Mr Loh Chin Hua, CEO of Keppel Corporation, accompanied by Ms Agnes Barbara Lorenzo, Hua (centre), CEO of Keppel Corporation and Chairman of Keppel Offshore & Marine, on the Senior VP (Finance & Administration) of Keppel Philippines Marine, greeting a resident of the yard’s facilities and projects during the latter’s visit to the yard on 5 April 2014 Keppel-GK Eco Village in Bauan, Batangas
Keppelite I April 2014 18 Sustaining Growth
Marks of sustainability As Sino-Singapore Tianjin Eco-City (Tianjin Eco-City) continues in its stride to be a model for sustainable development, several events in March and April affirmed the progress that the city has been making.
Ministerial visit Singapore Minister in the Prime Minister’s Office, Second Minister for the Environment and Water Resources and Second Minister for Foreign Affairs, Ms Grace Fu, visited the Tianjin Eco-City on 26 March 2014 as part of her four-day visit to China from 23 to 26 March 2014.
During her visit, Ms Fu was briefed on the latest developments and was impressed by the progress
that the project has made. Minister Grace Fu (second from right) interacting with elderly residents at the Elderly Centre of the No. 3 Community Centre in the The Minister also visited Tianjin Eco-City several sites in the Tianjin Eco-City, including the Landmark Building, the Arab Emirates. As a panelist the public and private sectors (LCLL), developed by Sino- No.3 Community Centre, the at a plenary session entitled with the aim of forging global Singapore Tianjin Eco-City Binhai Foreign Languages “Success in Green Public partnerships for sustainable Investment and Development School and the LCLL. Private Partnership”, Mr Ho development. Co., Ltd. (SSTEC) in the shared on the experience Eco-Business Park, also Sharing of experience that China and Singapore Green achievements bagged the “3-Star Award” The Tianjin Eco-City has have had in developing the In recognition of its conferred by China’s Green attracted the attention of the Tianjin Eco-City, the vision outstanding achievement in Building Design Label. The international community keen that the two partners have the area of green buildings award lauds the laboratory’s to learn from its experience for the project and the development, the Tianjin outstanding contributions in of being a significant bilateral progress achieved thus far. Eco-City has recently been the areas of green building, partnership between China selected as a “National environmental protection and Singapore involving The WGES is a high-level Green Building Base” by and energy saving. In 2013, both the public and private initiative by the Dubai the China Green Building the LCLL had also received sectors. Electricity & Water Authority Council. As a “National Singapore Building and and the Dubai Supreme Green Building Base”, the Construction Authority’s CEO of SSTEC Mr Ho Tong Council of Energy. It is the first Tianjin Eco-City would be the (BCA) Green Mark Platinum Yen was invited to speak at summit on green economy in demonstration city for other Award. It was the first building the inaugural World Green the Middle East and North cities in northern China. located in a temperate region Economy Summit (WGES) on Africa region that brings to be given the Green Mark
15 Apr 2014 in Dubai, United together participants from The Low Carbon Living Lab Platinum Award. keppelite
Keppelite I April 2014 Sustaining Growth 19
Investors’ choice
In recognition of Keppel’s in the “Best Corporate outreach efforts to engage Governance”, “Best a n d m a i n t a i n o p e n C o r p o r a t e S o c i a l communication with its Responsibility” and “Most shareholders, analysts and Committed to a Strong investors who participated Dividend Policy” categories. in FinanceAsia’s 14th annual poll voted Keppel H o n g K o n g - b a s e d Corporation as the “Best FinanceAsia is a leading Managed Company” and the financial publishing company company with “Best Investor in Asia. It conducts polls Relations” in Singapore. annually for the investing community to vote for Keppel Corporation also Asia’s top companies in their came in second position respective industry sectors among local companies and countries. keppelite
Regular outreach efforts such as site visits led to Keppel being voted “Best Managed Company” and with “Best Investor Relations” in Singapore Quality recognition
Receiving recognition for shipyard at this prestigious its sterling yard operations, award ceremony. Looking Keppel Shipyard was ahead, we will continue to presented the Shipbuilding deliver to our customers’ & Repair Yard Award at satisfaction by remaining Seatrade Asia Awards 2014. focused on product It was also nominated innovation, productivity for the Safety Award in improvements, and value- recognition of its efforts and added solutions.” achievements in safety. At the ceremony, Mr Chor also The awards event, held presented the Shipowner/ on 7 April 2014, brought Operator Award sponsored
together leading companies by Keppel Shipyard. keppelite in the maritime industry for a night of networking and celebration.
Mr Chor How Jat, MD of Keppel Shipyard, shared,
Mr Louis Chow (centre), Senior GM (Commercial) of Keppel Shipyard, receiving the “We are honoured to be Shipbuilding & Repair Yard Award on behalf of Keppel Shipyard at Seatrade Asia Awards recognised as a leading 2014 (photo courtesy of Seatrade)
Keppelite I April 2014 20 CelebratingSpecial Focus 45 years
Near market, near customer in China Keppel Offshore & Marine to establish a win-win partnership that will enable Keppel and Titan to become a major offshore solutions provider for China.
Celebrating the partnership between Keppel, Titan and GDZR are (from right to left) Mr Loh Chin Hua, CEO of Keppel Corporation and Chairman of Keppel O&M, Dr Xiong Shaohui, Chairman of GDZR, Mr Wong Kok Seng, MD of Keppel O&M (Offshore) and Keppel FELS, Mr Chow Yew Yuen, CEO of Keppel O&M, Mr Zhao Xu Guang, Chairman of Titan, and Mr Fu Yong Yuan, CEO of TQS
Keppel Offshore & Marine shipyard will have four ultra- capabilities, the yard is also will undertake projects (Keppel O&M), through its large and wide dry docks, able to construct offshore using Keppel’s proprietary wholly owned subsidiary, including one of the largest rigs including jackups and designs. This agreement FELS Offshore Pte Ltd, signed modern-designed docks in semisubmersibles. is conditional on the a management services China, which will enable it completion of the on-going agreement on 9 April 2014 to convert double hull vessels Under the agreement, which financial restructuring of with Titan Petrochemicals such as Floating Production is for a 30-year period and Titan and the resumption Group Limited (Titan) – of Storage and Offloading renewable thereafter as of the trading of its shares which commodities trading (FPSO) units. Besides ship mutually agreed, the yard, on the Hong Kong Stock conglomerate Guangdong repair and conversion managed by Keppel O&M, Exchange. Zhenrong Energy Co. Ltd. (GDZR) is a major shareholder – and Titan Quanzhou Shipyard Co. Ltd (TQS), to Having this TQS yard is an extension of our Near Market, manage the TQS shipyard. Near Customer strategy and enables us to service the Located in Quanzhou, Fujian Chinese market with our suite of proprietary solutions Province, TQS is one of the while meeting its requirement of building in-country. This largest shipyards in China, is further complemented by our other shipyard in China, occupying a total area of Keppel Nantong, which undertakes specialised shipbuilding 110 ha with 3,600 m length and offshore fabrication. of coastline. Mr Chow Yew Yuen CEO When fully completed, the Keppel O&M
Keppelite I April 2014 21
Mr Chow Yew Yuen, CEO our presence in the offshore of Keppel O&M, said, and marine business, and “The offshore oil and gas partnering Keppel, the market in China has been world’s leading rig builder, growing significantly, and is a significant step in this there is increasing demand direction. I am confident for high specification rigs that with Keppel managing and production vessels. At this yard which has good the same time, China is a development potential, market which has strong we will be able to quickly preference for China-made build up the track record products. Having this yard of the shipyard and deliver is an extension of our Near winning Keppel designs Market, Near Customer and products to Chinese oil strategy which enables us to and gas operators. Having service the Chinese market studied the market, we with our suite of proprietary believe there are a significant Jiangsu solutions while meeting its number of potential projects CHINA Province Keppel Nantong requirement of building that this yard is capable of in-country. This is further undertaking.” keppelite complemented by our other shipyard in China, Keppel Titan Nantong, which undertakes Fujian Quanzhou Province Shipyard specialised shipbuilding and offshore fabrication. Taiwan “With 20 yards around the world, we have experience in managing existing Continues on page 22... shipyards and optimising their operations, just as we have done so in Brazil, the Netherlands, USA and the Philippines. Together with the strength of GDZR’s extensive connections and experience in China, and our expertise and established track record in the global offshore and marine industry, we are confident that this is a win-win partnership that will enable Keppel and Titan to become a major offshore solutions provider for China.”
Mr Zhao Xu Guang, Chairman of Titan, added,
“We are looking to enhance The management of the TQS shipyard will further increase Keppel O&M’s presence in China, where it currently has a shipyard in Nantong (seen in picture)
Keppelite I April 2014 22 CelebratingSpecial Focus 45 years
...continued from page 21. Strategic move Keppel’s signing of the agreement to manage the Titan Quanzhou Shipyard generated significant interest. Keppelite shares some highlights from a Question & Answer session that senior management held with the investment community on 9 April 2014.
What are some of the they are not just threats. They tankers. This is potentially a can take less of the work, key features of Titan also present opportunities. game-changer for us. with the remaining work Quanzhou Shipyard flowing to our other yards (TQS)? And these opportunities are Are you expected to in the region. The yard is operational and tremendous. The Chinese invest capex? has experience in building are very keen to develop We have a partner with How much work do you vessels. It is not a green-field their offshore sector. They a yard who is willing to expect TQS to undertake, project. We will be able to are increasing investment invest capital for further and how does this fit in enhance the yard ahead of in offshore exploration and enhancements in the yard with the rest of Keppel’s contracts that it will secure production activities to RMB and enable us to execute the yards? in future. 300 billion in its 12th five- projects. The yard will not be able to year plan, up from RMB 100 come on stream immediately. Quanzhou is strategically billion in its 11th five-year Our management team In the initial stages, our located with Shanghai to plan. will make assessments and Singapore and regional the north, Hong Kong to recommend enhancements yards will take on higher the south and Taipei and Up till now, it has been very to the owners of the shipyard. proportion of the work, Kaohsiung across the strait. difficult for foreign yards to The decision lies with them before this is transferred It is situated along busy break into China’s offshore whether to put in the capex. slowly as TQS builds up its
trading routes and located market, which is exclusive to If they do not, the TQS yard capability. keppelite within the bay, protected its State-owned Enterprises. from extreme weather in that This opportunity came along part of China. and the partners came to us as we are able to offer a TQS is a very large yard in whole suite of solutions. China – 110 hectares – that is partially developed. It has We are also privileged to have extensive plans. When fully strong partners with excellent completed, it will have four networks and the ambition drydocks. The largest dock to establish a leadership there will be 80m wide, position in China. which is suitable for whole range of vessels including Importantly, for us, the modern large tankers. potential benefits of this partnership are multi-faceted. What opportunities For instance, we will be able does Keppel see in this to populate this market with partnership? our proprietary designs. Also, Traditionally, we have looked it will entail the use of the at Chinese yards as one of facility, including eventually the key competitors in the four of the largest drydocks The new partnership will enable Keppel O&M to populate China’s offshore market with its business that we are in. But that can handle double-hull proprietary designs such as the KFELS B Class jackup rig
Keppelite I April 2014 Keppelite I April 2014 Sustaining Growth 23
Cultivating China ties
Keppel continues to engage businesses, which was Hu was accompanied by Yunnan Chinese government leaders, followed by a yacht cruise Chinese Ambassador to On 16 April 2014, Executive with the Group’s senior during which the delegates Singapore, H.E. Duan Jielong. Vice Governor of Yunnan management hosting two enjoyed panoramic views Apart from the Guangdong Province, Ms Li Jiang, led an delegations from Guangdong of Keppel Land’s iconic delegation, Party Secretary eight-member delegation and Yunnan Province during waterfront development, Hu was also accompanied to visit Singapore. Mr Teo their visits to Singapore Reflections at Keppel Bay. by a 17-member delegation and senior management in April 2014. from Zhongshan led by from Keppel Land hosted Dr Lee Boon Yang, Chairman Mr Xue Xiaofeng, Secretary the delegation to dinner at Guangdong of Keppel Corporation, of the CPC Zhongshan Marina at Keppel Bay. O n 2 0 A p r i l 2 0 1 4 , a hosted the visit together Municipal Committee. 23-strong delegation from with Mr Loh Chin Hua, CEO During the dinner, Mr Teo Guangdong Province led by of Keppel Corporation, Guangdong is Singapore’s updated Vice Governor Li Mr Hu Chunhua, Member Mr Teo Soon Hoe, Senior top trading partner in on the latest development of the Political Bureau of the ED of Keppel Corporation, China, with bilateral trade of the Spring City Golf & Communist Party of China Mr Ho Cheok Kong, reaching US$17.9 billion Lake Resort, Keppel Land’s (CPC) Central Committee President of Keppel Land (S$22.4 billion) last year. award-winning golf course and Secretary of the CPC China, and Mr Vincent Ko, The Group has various in Yunnan, and expressed Guangdong Provincial CEO of Logistics China, projects in the Chinese appreciation for the provincial Committee, visited Marina Keppel Telecommunications province, including Keppel government’s support since at Keppel Bay. & Transportation. C o v e , a n i n t e g r a t e d Keppel ventured into the
residential cum marina province in the 1990s. keppelite The delegation was given F r o m t h e C h i n e s e lifestyle development in a presentation on Keppel’s delegation, Party Secretary Zhongshan.
Visiting Marina at Keppel Bay (from left): Mr Xu Shaohua, Member of the Standing Committee of the CPC Guangdong Provincial Committee and Executive Vice Governor of Guangdong Province; Mr Chen Fengxiang, Vice Minister of International Department of the CPC Central Committee; Mr Teo Soon Hoe, Senior ED of Keppel Corporation; Mr Hu Chunhua, Member of the Political Bureau of the CPC Central Committee and Secretary of the CPC Guangdong Provincial Committee; Dr Lee Boon Yang, Chairman of Keppel Corporation; Mr Loh Chin Hua, CEO of Keppel Corporation; H.E. Duan Jielong, Chinese Ambassador to Singapore; and Mr Ho Cheok Kong, President of Keppel Land China
Keppelite I April 2014 24 Sustaining Growth
Insights into Keppel
As a leader in the offshore company, Temasek, on Mr Linssen also shared opportunities for further and marine industry, Keppel’s 2 4 M a rc h 2 0 1 4 . T h e w i t h t h e m h o w t h e cooperation with Swedish yards have attracted the delegation, led by Ms establishment of the yard companies. attention and interest Ho Ching, ED and CEO in Verolme was the result of of many, from students of Temasek, was given a the hard work and foresight During the visit, hosted by to visiting diplomats, in tour of the yard’s facilities of Keppel’s management MD of Keppel Singmarine Singapore and overseas. by Keppel Verolme’s MD and a source of pride for Mr Hoe Eng Hock and Keppel Offshore & Marine Mr Harold Linssen. the company. management from Keppel (Keppel O&M) hosted FELS and Keppel Shipyard, a number of visits in During the tour, the visitors Swede talk the Swedish diplomats were S i n g a p o r e a n d t h e viewed some of the projects In Singapore, Ambassador pleased to learn that Keppel Netherlands in the last that were being undertaken of Sweden to Singapore O&M works with a variety couple of months. in the yard and learnt H.E. Hakan Jevrell and of Swedish companies that more about the synergy Mrs Karin Öhman, Deputy provide essential equipment Visit to Keppel Verolme between Keppel O&M’s Head of Swedish Mission in the construction of oil Keppel’s yard in the yards worldwide and the in Singapore, visited Keppel rigs, and that Keppel also N e t h e r l a n d s , K e p p e l strengths of the company’s O&M on 7 April 2014 to has a strong partnership Verolme, hosted a visit Near Market, Near Customer learn more about Keppel with Swedish-based by Singapore investment strategy. O&M’s business and explore company Floatel.
Mr Harold Linssen (left), MD of Keppel Verolme, introducing Ms Ho Ching (second from left), ED and CEO of Temasek, and her delegation to the yard’s graving dock, which is one of the largest in Europe
Keppelite I April 2014 Sustaining Growth 25
projects it has completed for Norwegian companies.
Student exchanges On 10 April 2014, a group of more than 60 students from the Temasek Foundation Leadership Enrichment and Regional Networking (LEaRN) e x c h a n g e p ro g r a m m e visited Keppel O&M to learn more about the offshore and marine industry. These students comprised scholars from Singapore universities a n d o t h e r r e p u t a b l e universities in Asia who are in Singapore on exchange Swedish Ambassador H.E. Hakan Jevrell (second from left) and Mrs Karin Öhman (left), Deputy Head of Swedish Mission in Singapore, were programmes. shown around Keppel O&M by Mr Hoe Eng Hock (third from left), MD of Keppel Singmarine and Mr Chris Ong (second from right), Acting ED (Operations) of Keppel FELS Mr Keith Teo, GM (Marketing) of Keppel FELS and Jan Lye, Assistant GM (Human Resources) of Keppel O&M, engaged the students during their visit by sharing on the growth potential of the industry and its career prospects.
Given the number of engineering students in the group, a lively discussion ensued, covering a wide
Mr Michael Chia (left), MD (Marine & Technology) of Keppel O&M, and Mr Wong Kok Seng (right), MD (Offshore) of Keppel O&M, hosted range of topics from how Ms Dilek Ayhan (second from right), Norwegian State Secretary for Trade, Industry and Fisheries, and Norwegian Ambassador to Singapore Keppel achieved its success H.E. Tormod C. Endresen (second from left) during their visit at Keppel O&M to the use of potable water onboard a rig. As part of the tour of the yard, on Keppel O&M on 8 April representatives from the the Swedish dignitaries were 2014. Norwegian Shipowners’ The scholars left Keppel also shown the 500-tonne Association. O&M with overwhelmingly gantry crane which was The State Secretary was positive feedback on the bought from a Swedish yard accompanied on the visit Mr Michael Chia, MD visit. Many shared that they in the 1980s. by Ambassador of Norway (Marine & Technology) of were impressed with the to Singapore H.E. Tormod Keppel O&M, and Mr Wong state-of-the-art technology Norwegian C. Endresen, Ms Ida Skard, Kok Seng, MD (Offshore) of that is used in the yard while connections Director General of the Keppel O&M, hosted the a number of them noted that Ms Dilek Ayhan, Norwegian Maritime Department in visitors, who learnt about the visit was the highlight State Secretary for Trade, Norway’s Ministry of Trade, Keppel O&M’s long ties of the day’s programme
Industry and Fisheries, called Industry and Fisheries, and with Norway and the many for them. keppelite
Keppelite I April 2014 26 Sustaining Growth
Configured for growth
Constantly shaping itself of its businesses and t o e n v i r o n m e n t a l annual reports in either for the future, Keppel is underpinning principles. c o n s e r v a t i o n a n d CD-ROM format or printed on driven to continue its sustainability, the Group Forest Stewardship Council-
trajectory of sustainable In line with its commitment has been distributing its certified paper. keppelite growth. Symbolising Keppel’s flexibility, potential and commitment is the tangram motif that runs through the Group’s 2013 Annual Reports, which are themed “Configured for Growth.”
Taking inspiration from how tangram blocks can be rearranged into seemingly countless formations, the tangram motif is incorporated into the distinctive Keppel spur that can be seen prominently on the cover of the reports. The design represents the Group’s dexterity and ability to capture value by configuring all its components into a cohesive and optimal whole even as it builds on the strength of its core competencies.
As a multi-business The Group’s 2013 Annual Reports, themed “Configured for Growth,” bear a tangram motif that symbolises the Group’s drive to capture value conglomerate with several by constantly assessing and configuring all its components into a cohesive and optimal whole publicly-listed entities, the Group puts significant effort every year into producing c o m p r e h e n s i v e a n d Special Feature: quality reports that enable Focus. Distinction. Engagement stakeholders and analysts to keep themselves abreast of The narratives in Keppel Corporation’s 2013 Annual Report are grounded in the central the Group’s developments themes of Focus, Distinction and Engagement. and strategies. • Clarity of focus is crucial. Even as Keppel seeks new business opportunities, it will not stray from its core competencies and close adjacencies; The Annual Reports also • Keppel’s unwavering dedication to innovation will enable it to continue achieving serve as an invaluable distinction in diverse industries; tool for communicating • To ensure that Keppel is a world-class company upheld by integrity and accountability, Keppel’s brand and culture, Keppel actively engages its stakeholders on sustainability issues. articulating the character
Keppelite I April 2014 Sustaining Growth 27
Meeting of minds in Asia
K e p p e l O f f s h o r e & Malaysia, from 25 to 28 March on 26 March 2014, which OTC’s flagship event held Marine (Keppel O&M), a 2014, the conference saw was a good opportunity for annually in Houston, Texas, longstanding supporter about 18,000 participants Keppel O&M’s management United States. Other key of Offshore Technology from over 80 countries. and team to catch up conferences held by the same Conference (OTC), extended with customers, business organisers include the Arctic its participation in the Keppel O&M took up a associates and friends. Technology Conference and event by taking part in the booth at the exhibition and OTC Brasil. keppelite inaugural Asian edition of showcased its established OTC’s expansion into the conference, branded track record as well as its Asia reflects the region’s OTC Asia. innovative suite of offshore increasing relevance in the solutions. A cocktail reception global energy space. OTC Held in Kuala Lumpur, was held at the Keppel booth Asia is an extension of
1 2
3 4
1. From left: Mr Wong Kok Seng, MD (Offshore), Keppel O&M and MD, Keppel FELS; Mr Michael Chia, MD (Marine & Technology), Keppel O&M; Mr Lim Chin Leong, Board Director, Keppel O&M; Mr Chan Eng Soon, NUS Dean of Engineering and Keppel Professor; and Mr Chor How Jat, MD, Keppel Shipyard 2. Mr Chor How Jat (far left) with representatives from key customer MODEC: (from left) Mr Toshiro Miyazaki, President & CEO, MODEC Inc; Mr Kensuke Taniguchi, Deputy Director, MODEC Inc; and Mr Sateesh Dev, President, MODEC Offshore Production Systems Singapore 3. Jamin Mohamad (left), Assistant GM (Commercial) and Gerlynn Cai (right), Marketing Officer from Keppel Shipyard with Mr Andrew atersonW (centre), Technical Manager, M3Energy Malaysia 4. (From left) Mr Wong Kok Seng; Mr Pham Tien Dung, CEO of PV Drilling; Mr Michael Chia; and Hoo Yao Lin, Marketing Executive, Keppel FELS
Keppelite I April 2014 28 Sustaining Growth
Resolute friendships
Continuing the company’s Ho Chi Minh City (HCMC) Committee, who were called on the Ambassador ongoing efforts to foster from 17 to 21 March 2014. given updates on Keppel of Singapore to Vietnam strong relations with Land’s latest developments Mr Ng Teck Hean and Vietnam, where it already Among the officials that and plans in Vietnam, Singapore Consul-General has significant presence, Mr Ang met were Mr Nguyen and reaffirmation of the in HCMC, Ms Leow Siu Mr Ang Wee Gee, CEO Van Suu, Vice Chairman of company’s commitment to Lin, as well as valued of Keppel Land, called on Hanoi People’s Committee grow with the country. Vietnamese partners. government officials during and Mr Le Hoang Quan, a five-day visit to Hanoi and Chairman of HCMC People’s During his visit, Mr Ang also Keppel Land is one of the pioneers and largest real estate investors in Vietnam with a pipeline of about 22,000 homes. It has a diverse portfolio of properties in Hanoi, HCMC, Dong Nai and Vung Tau which range from Grade A offices, waterfront homes and integrated townships to award-winning serviced
residences. keppelite Mr Ang Wee Gee (left), CEO of Keppel Land, called on Mr Le Hoang Quan (right), Chairman of HCMC People’s Committee, during his visit to Vietnam in March 2014
YY on national safety council
Mr Chow Yew Yuen, CEO of raise WSH standards in Keppel Offshore & Marine, Singapore. has been appointed by Singapore Acting Minister for The Council comprises Manpower Mr Tan Chuan-Jin 18 members from various to the Workplace Safety and professional backgrounds Health (WSH) Council with who have extensive industry effect from 1 April 2014. experience. Members of the Council will play a crucial role The WSH Council works in guiding transformational closely with the Ministry changes on the management of Manpower and other of WSH across various government agencies, sectors and disciplines the industry, unions and from construction and professional associations landscaping to hospitality
Mr Chow Yew Yuen, CEO of Keppel Offshore & Marine to develop strategies to and entertainment. keppelite
Keppelite I April 2014 Sustaining Growth 29
Demonstrations of commitment
In line with the Group’s Safety core value, Keppel Singmarine and Keppel Land have been putting in continual efforts to keep to the commitment of making their workplace safe.
Safety milestone In January 2014, the Hull 381 project, a derrick pipelaying vessel that Keppel Singmarine is building for McDermott The project teams of Hull 381 from Keppel and McDermott celebrate the achievement of one million safe man-hours without loss-time incident International (McDermott), achieved one million safe man-hours without lost-time incidents since striking steel in April 2013.
Marking the safety milestone, Keppel Singmarine was presented a plaque by Mr John MacPherson, Project Manager from McDermott, on 31 March 2014.
Mr Jack Bullock, VP (Offshore Resources) of McDermott, congratulated the project Members of the Keppel Land Board Safety Committee (BSC) keep abreast of safety issues and measures through regular site visits to projects t e a m s f r o m K e p p e l under development Singmarine and McDermott, “This achievement marks that Keppel Singmarine has commitment to ensure that CEO of Keppel Land; and the culmination of the undertaken to date. its projects in Singapore and Mr John Birchall, Director of tireless efforts of both the overseas are run with a focus Workplace Health and Safety, McDermott and Keppel Safety watch on safety. Keppel Land, and Keppel project teams to ensure the Members of the Keppel Land Group Safety Coordinator. safety and well-being of Board Safety Committee Keppel Land BSC Chairman every worker involved in this (BSC) visited the work sites Tan Yam Pin led the visit, Discussions held during project.” of three developing projects accompanied by other BSC the visit included ways to – Park Avenue Heights, Hill members which included encourage on-site contractors The project teams are Crest Villa and Serenity Villa Mrs Koh-Lim Wen Gin, Board to report near-miss incidents. currently working towards – in Chengdu, China, from Director of Keppel Land; keppelite the launch of the vessel, 31 March to 2 April 2014. Mr Loh Chin Hua, CEO expected to take place later of Keppel Corporation this year. The Hull 381 project The visits were part of Keppel and Chairman of Keppel is the biggest newbuild vessel Land’s regular efforts and Land; Mr Ang Wee Gee,
Keppelite I April 2014 30 Sustaining Growth
Green honours
Eco-City Inter national Country Club (ECICC) was lauded for excellence in golf course management and environmental protection, beating some 20 other golf and country clubs to bag the gold award under the Wetlands category while Spring City Golf & Lake Mr Elvin Chua (extreme left), GM of Eco-City International Country Club, receiving the gold award under the Wetlands category on behalf of Resort swept the awards for the club at the Top Golf Courses Awards 2013/2014 event held on 13 March 2014 Gold Caddie Service and Top 18 Famous Holes in China. Mr Elvin Chua, GM of ECICC by protecting and conserving ECICC has been recognised who accepted the awards the environment, while for its green effort. It was Organised by Funfun Golf, on behalf of the clubs, at the same time provide the first golf club in the China’s largest golfing media, said, “These awards are a excellent services for world to be certified an the annual awards is the testament to our steadfast our guests.” Audubon Classic Sanctuary golfing industry benchmark commitment to conduct golf course in April 2009.
of excellence in China. our business responsibly This is not the first time keppelite
Roles revealed
In a six-part Channel in keeping Singapore clean. homes and marina lifestyle NewsAsia documentary The WTE plant, which is co-existing sustainably with series, Singapore Revealed, the first in Singapore to be thriving marine life in its which uncovers the systems built under the Public-Private surrounding waters. and infrastructure that Partnership initiative and keep Singapore running to feature Keppel Seghers’ In the final episode of effectively, Keppel Group proprietary technology, is the series, “Financing was featured widely, given contracted to treat up to 800 Singapore”, the documentary the many roles it plays in tonnes of municipal waste showcased Singapore’s contributing to sustainable per day, generating about top companies, including urbanisation through its 22MW of green energy. Keppel Offshore & Marine. range of businesses. It highlighted how the In the “Planning Singapore” Singapore company has built The series debuted on 23 episode, the series took a up a strong delivery track February 2014, with its closer look at the nation’s record and global reputation first episode, “Cleaning residential policies and by having strong design, Singapore”, showing the development. The Keppel engineering and executional Keppel FELS was one of the companies Keppel Seghers Tuas Waste- Bay precinct was highlighted excellence to gain an edge in the Keppel Group to be featured in Channel NewsAsia’s recent documentary to-Energy (WTE) plant’s role for its luxurious waterfront over its competitors. keppelite series
Keppelite I April 2014 Sustaining Growth 31
Spurring Innovations
Uplifting ideas
When the Machinery Department at Keppel Shipyard undertook a job to “Our client was so impressed with overhaul a thruster in early our innovation that they actually 2013, the team was faced purchased our jig for their own use. with the challenge of lifting We are glad that our client can see the and transporting the vessel’s value-add we bring to the job.” propulsion device from the drydock to the workshop. Madivanan Rajoo, Senior Foreman at Keppel Shipyard At that time, there were no standard ways or tools to carry a thruster that is irregular in shape and weighs as much as 25 tonnes thruster by acting as its also enabled 50% savings onshore for repair works. container. The result was a in manpower over the whole cube-like jig whose bottom process of overhauling the The team had to improvise half has a semi-circular thruster to be achieved. by balancing the steel structure for the rounded structure on a transporter base of the thruster to rest One of the team members, with wooden blocks and on, and clamps on the top Madivanan Rajoo, Senior wedges, and securing it half to hold the thruster in F o r e m a n a t K e p p e l with chains and belts. place. Shipyard, said, “Our client As an added precaution, was so impressed with our workers would walk by the Once the thruster is fastened innovation that they actually sides of the transporter to to the jig, the workers can purchased our jig for their prevent the thruster from transport the resulting own use. We are glad that The team from Keppel Shipyard developed toppling while it was being structure with ease as it can our client can see the value- a jig to help move thrusters – from lifting ferried from the quayside to be hooked up easily to cranes add we bring to the job. to vehicular transportation – and hold it in place for repairs. The jig not only improved the workshop. for lifting, and sit stably on a safety, but also resulted in 50% manpower transporter because of its “The beauty of the jig savings over the entire transportation and When the second thruster square base. In fact, the team design is that it can be easily overhauling process job came along, the team designed it such that repair modified according to the decided to devise a safer works can be carried out on shapes and sizes of different and more effective way of the thruster without even thrusters. We look forward carrying and transporting removing it from the jig. to sharing our invention with on 7 October 2013, and thrusters. other clients who need it.” an award at the 16th As a result of the innovation, Association of Singapore After much brainstorming, the risk to workers arising The ingenious invention Marine Industries Convention the Machinery Department f r o m h a n d l i n g a n d won the project team a Gold for Workplace Safety and team came up with an transporting a thruster was award at the 7th Keppel Health Innovations on invention that secures a greatly reduced. The device Group Safety Convention 25 September 2013. keppelite
Keppelite I April 2014 32 Empowering Lives Lives
Joining the family
Close to 170 new Keppelites to ask the management any across the Group were questions we may have on inducted to the wider Keppel building a fulfilling career family and its various business with Keppel, and also gain units when they attended the a better understanding Keppel Group Orientation of the Group’s strategies held at the Suntec Singapore and vision.” Convention and Exhibition Centre on 27 March 2014. A different kind of sharing session took place on 4 April To help the newcomers learn 2014 when close to 50 eager more about the company candidates participated in through management’s the annual Keppel Group insights and experiences, Scholarship selection process Keppelites were divided into which was held in the cosy eight groups where they setting of a tea session. engaged face to face with senior management from the Aspiring to join the Keppel various units in more intimate family, participants had a Dr Lee Chay Hoon (left), GM (Organisational Development) of Keppel O&M receives the and interactive conversations chance to interact with Randstad Award on behalf of the Group for first-hand learning and working Keppel scholars to understanding of the Keppel find out more about the core values. scholarship and opportunities in the Group, while Group Among the many participants Human Resources also learnt Choice employer w h o a p p re c i a t e d t h e more about the candidates insightful and candid sharing through an exercise on a by the management was simulated business case Keppel Corporation secured initiatives have been lauded Goh Yu Xian, HR Executive that was designed to shed the top spot as the most at various national and at Keppel Offshore & insights on the candidates’ attractive employer in industry award platforms Marine, who said, “It was p e r s o n a l v a l u e s a n d Singapore in the Engineering over the years. In 2013, a good opportunity for us leadership qualities. keppelite Sector Services category at Keppel Corporation was the Randstad Award 2014 given the Human Capital held on 11 April 2014. Breakthrough Award by Human Capital Singapore The award studies the for improvements made to attractiveness of 75 of its human capital and talent the largest companies in management practices, Singapore as employers. while Keppel Offshore More than 6,500 job seekers & Marine (Keppel O&M) were surveyed for this received the Best Graduate study. Development and Best Health & Well-Being As an employer with more Award at the 10th Human than 40,000 staff worldwide, Resources Management Newcomers to the Keppel family met senior management from the Group and had insightful Keppel’s people development Awards. keppelite exchanges with them during the Keppel Group Orientation on 27 March 2014
Keppelite I April 2014 Empowering Lives 33
Gleanings on governance
Good corporate governance To equip Keppelites with Dufey, Professor Emeritus at board and dimensions of is about the extent to which a solid understanding of Ross School, The University board effectiveness. companies are run in an corporate governance, Group of Michigan, Ann Arbor. ethical, transparent and open Human Resources arranged Commenting on the course, manner – characteristics that for some 30 participants to The course gave participants Daniel Toh, Yard Manager are crucial for overall market attend a full day course on an overview of corporate at Keppel Singmarine, said, confidence. 3 April 2014 by Dr Gunter governance from both “I am now more aware of theoretical and practical the various mechanisms perspectives. In particular, for effective governance, Prof Dufey shared on the and I have gained a better significance of corporate understanding of how governance and its impact on i m p ro v e d g o v e r n a n c e a company’s cost of capital structures and processes and risk profile, how it can help ensure quality be implemented through decision-making at the an integrated approach at senior management level country, capital market and and support the sustainable corporate levels, and the development of companies.”
functions of a company’s keppelite Keppelites gained insights on corporate governance best practices at a course organised by Group Human Resources
Chill-out evening
Unwinding after a hard day of work, about 50 Keppel Young Leaders gathered on the evening of 3 April 2014 to catch up with each other over cool brews and pub grub.
The networking event took place at The Loof, a rooftop bar located in the Singapore city centre. This is the first time that a networking session was organised in the relaxed setting of a popular bar. Judging from the enthusiastic response and positive feedback from the participants, more of such events can be expected! Members of Keppel Young Leaders chilling out over drinks at a rooftop bar keppelite
Keppelite I April 2014 34 Empowering Lives
Keppelites Abroad
Rewarding journey
Looking back at the past three opportunities that come analyst, she faced numerous G i v e n h e r C h i n e s e years spent in Singapore, with a stint in a different difficulties at work due to background, Elaine has Elaine Han, Assistant VP at environment. her lack of experience in naturally been involved in Alpha Investment Partners the real estate industry. At a few projects in China, (Alpha) is glad that she As with all well-earned the same time, she had to allowing her to leverage had made the courageous rewards in life, hard work juggle the challenges of her language skills and decision to step out of her and perseverance have to setting up a new life in a knowledge of the local hometown in China to work be put in first. When Elaine foreign land. culture in her work, overseas. It had not been first arrived in Singapore to especially during contract an easy choice, but Elaine is work with the property fund With help from her supportive negotiations. She is currently now enjoying the learning management firm as an colleagues, Elaine gradually one of the asset managers found her way round her of a retail space project in new work environment and suburban Shanghai and a overcame her challenges one luxury apartment project by one. Elaine shared, “My also in Shanghai. colleagues had to teach me everything from cashflow At the same time, living modeling to presentation in Singapore has opened skills. I am so thankful for Elaine’s eyes to many their support and patience different cultures, given with me!” the ethnic diversity of the people she comes across At Alpha, Elaine is now both at work and outside working at the Asset work. Management Department and her responsibilities She said, “Interactions include working with with people from different overseas offices to manage cultural backgrounds have real estate assets. Describing broadened my mind to her work, Elaine said, “Our view things from more investors’ interest would multi-layered perspectives. always come first, so we This is an invaluable skill strive for maximum returns that working overseas by either adding value to the has equipped me with. assets, providing cost-saving I definitely feel more solutions for the properties, c o n f i d e n t i n f a c i n g or divesting the assets at uncertainties and challenges
good prices.” in life now.” keppelite Elaine Han (right), who left her hometown in China three years ago to work overseas, is now enjoying the learning opportunities that come with a stint in a different environment in Singapore
Keppelite I April 2014 Nurturing NurturingCommunities Communities 35
Celebrating Singapore
Over 9,000 Singaporeans tastes, sights and sounds of event was graced by Prime as well as indie rockers The living, working and studying home on 29 March 2014 Minister Lee Hsien Loong, Great Spy Experiment. in the United Kingdom when they came together to Deputy Prime Minister Teo and other parts of Europe celebrate Singapore Day in Chee Hean and Minister in They also received updates on reconnected with the familiar London’s Victoria Park. The the Prime Minister’s Office developments in Singapore, Grace Fu. Keppel Corporation including the education was a corporate partner. landscape, the sports scene, infrastructural developments Participants were treated and career opportunities. to authentic Singaporean h a w k e r f a r e a n d Held annually in major cities performances by local artistes with significant numbers of such as the Dim Sum Dollies, Singaporeans, Singapore Day Hossan Leong, Chua En-lai is a collaborative effort by the and Michelle Chong from Overseas Singaporean Unit The Noose, music duo and and its partners from the radio entertainers Jack & Rai, public and private sectors. Overseas Singaporeans in London got a taste of home during Singapore Day on 29 March keppelite 2014, supported by Keppel Corporation (photo courtesy of Overseas Singaporean Unit) Amazing maritime hunt
With quick wit and fast feet, of the Singapore Maritime an all-female team from Foundation and MD (Marine Keppel FELS reigned at the & Technology) of Keppel Amazing Maritime Hunt held Offshore & Marine. on 6 April 2014, clinching the ‘Best Corporate Team’ The winning team was made title. The event, organised as up of Zhen Liyi, Nur Hidayah part of Singapore Maritime Bte Jumal, Low Mei Liang Week 2014 and sponsored and Tan Hui Xian from the by Keppel Corporation, production outfit at Keppel comprised a series of FELS. On the team’s win, Liyi maritime-themed games. shared, “Throughout the The all-female team from Keppel FELS reigned at the Amazing Maritime Hunt, clinching the competition, we kept the ‘Best Corporate Team’ title Close to 100 Keppelites Keppel Can Do! spirit ablaze participated in the hunt, in us. We focused our minds Singapore Maritime Week, dialogues, exhibitions and which required teams to on completing all stations organised by the Maritime and social events in celebration strategise and compete on as fast as we can and found Port Authority of Singapore, of all things maritime. various physical and mental ways and means to make is the leading maritime event Exhibitions at VivoCity, challenges at stations located it happen! We enjoyed the in Singapore. Over the week, Jurong Point and Parkway across Singapore. The flag- game thoroughly, so the the international maritime Parade were attended by off at VivoCity was graced by win was really an amazing community in Singapore some 100,000 visitors.
Mr Michael Chia, Chairman bonus!” gathered for conferences, keppelite
Keppelite I April 2014 36 Nurturing Communities
Power hour
On 29 March 2014, facilities in China. Going conserve energy in their own note by an appearance from Keppelites across the Group beyond the symbolic Earth homes or offices beyond the the cast of The Amazing once again rallied to the call Hour, efforts were also made official hour. Spiderman 2 movie. They of Earth Hour, an annual to encourage eco-friendly also witnessed the unique campaign organised by the attitudes through educational Helping to spread the sight of lights going out World Wide Fund for Nature posters and emails. message of environmental across the Marina Bay to raise environmental conservation through skyline. consciousness globally. At Keppel Land, which their regular volunteer switched off non-essential work, Keppel Volunteers May Tan, a secretary at Around the world, Keppel’s lights in 41 properties accompanied Association for Keppel Land, who was one of business units showed across Singapore, China, Persons with Special Needs the Keppel Volunteers, said, their support for energy Indonesia, Myanmar and (APSN) students from Delta “Spending Earth Hour with conservation by switching Vietnam, support for the Senior School and Centre for APSN students and soaking off non-essential lights for cause was not restricted to Adults to Earth Hour’s official up the spirit of environmental an hour between 8.30pm the company. Outreach to its event in Singapore at the conservation together was and 9.30pm – from Keppel residential and commercial Float@Marina Bay. such a memorable experience. Offshore & Marine’s yards tenants at these properties It was also inspiring to be part and Keppel Infrastructure’s also resulted in their strong Together, they celebrated of a meaningful event that is facilities in Singapore, to expressed support for Earth Hour and reveled in shared by millions of people Keppel Nantong Shipyard and energy conservation, with the carnival atmosphere, from around the world.”
Keppel Logistics’ warehouse some making efforts to which was brought to a high keppelite
Keppel Volunteers and students from the Association for Persons with Special Needs showed their support for protecting the planet at the official Earth Hour 2014 event at the Float@Marina Bay, together with staff from Singapore radio station Kiss 92FM
Keppelite I April 2014 Nurturing Communities 37
Promoting eco solutions
As a green developer, Hub, to learn more about presentation, the students solution which were then the management team Effective Microorganism tried their hand at kneading thrown into the pond to at Taman Sutera, Keppel (EM) technology and its mud balls mixed with EM help clean the water. keppelite Land’s integrated township application. The Taman in Johor Bahru, Malaysia, Sutera management team has been continually has been partnering the EM channelling efforts to eco- Research Organisation to activities and educational organise forums to promote p r o g r a m m e s t h r o u g h EM solutions in construction collaborations with research and landscaping. bodies and education institutes to promote eco- During the visit, Mr Isao friendly lifestyles. Suehiro, a guest speaker from the EM Research On 27 March 2014, students Organisation gave an in- from Singapore’s Ngee depth presentation on EM Ann Polytechnic visited the technology and shared on Kiwanis CareHeart Centre, a how the Kiwanis CareHeart vocational training centre for Centre had implemented youths with autism located the technology in its green Ngee Ann Polytechnic students tried their hand at an eco-friendly way of cleaning water in a at Sutera Utama Education nursery and pond. After the pond during their visit to Kiwanis CareHeart Centre in Johor Bahru, Malaysia Pedal for charity
Cyclists from Keppelite 30 March 2014 to raise aid of Dover Park Hospice the Keppel flag high at the Recreation Club competed funds for the underprivileged. and SingHealth Transplant’s same time. in The Business Times The event was supported TRUEfund. Charity Challenge on by Keppel Corporation in “ W e c o n q u e r e d t h e Chang Hsu and Teo Wei punishing, steep climb of Kiat from Keppel Shipyard, Benjamin Sheares Bridge, Shawn Lee from Keppel FELS raced on the East Coast and Lai Jin li from Keppel Parkway Expressway, and Singmarine took part in completed the race with the 40-km race, which very creditable timings! was flagged off by Acting I certainly look forward to Minister for Manpower cycling together with my Mr Tan Chuan-Jin. fellow Keppelites again in future.” Participating in the race for the second year running, The Business Times Charity Chang Hsu shared, “We are Challenge is part of the
Cyclists from Keppelite Recreation Club (from left to right) Chang Hsu, Shawn Lee, Teo Wei Kiat pleased to have done our OCBC Cycle Singapore and Lai Jin Li do their part for charity by competing in The Business Times Charity Challenge 2014 part for charity and flown event. keppelite
Keppelite I April 2014 38 Nurturing Communities
Stirring experience
Recently relaunced in 2013, Through this scheme, students and teachers alike. of such plays because they Keppel Nights cultivates students from Fajar Ms Nuraisah Bte Sman, got to learn a lot about life. arts appreciation and Secondary School recently one of the teachers who benefits pupils from caught a play, Juma’at 6 attended the performance, Thank you so much to Keppel heartland schools in Pagi, at Esplanade. The expressed her heartfelt Corporation for making the Singapore. gripping performance riveted appreciation. Keppelite experience possible. With the shares an excerpt: Keppel Nights programme, it is so much easier for teachers “Thank you so much for the to bring students to the opportunity. The students theatre because we have really enjoyed the show. a lighter administrative burden. In fact, some of the students – including the boys – cried The students definitely because they were so moved benefited because a number by the actors’ performance. of them come from less It was a simple play, easy fortunate families. Without to understand but most Keppel’s generosity, they importantly, impactful to the may not have had the chance Through the Keppel Nights scheme, students from Fajar Secondary School had the chance students. The students told at all to watch plays at the to enjoy the play, Juma’at 6 Pagi, at Esplanade Theatre Studio (photo courtesy of Esplanade -Theatres on the Bay) me they want to attend more Esplanade.” keppelite
Spirited away
The fourth and final installment of the Keppel Land-sponsored Keppel Land-Singapore Chinese Orchestra (SCO) Outdoor Rhapsody took place at Singapore Botanic Gardens on 5 April 2014 to the theme of “Ravishing Dances”, enthralling the audience with spirited tunes.
Keppel Land had donated $50,000 to the SCO in 2013 for the Outdoor Rhapsody series in an initiative to make cultural music accessible to a
broader audience. keppelite
Keppelite I April 2014 Nurturing Communities 39
Splashes of colour Keppel Volunteers brought colour and smiles to lives, painting the interiors of Moral Student Care Centre and taking the elderly from Bedok Radiance Seniors Activity Centre out on an excursion to enjoy orchid blooms.
Paint in the cheer Care Centre provides before units joined hands in Over the weekend from 22 and after school care services painting the entire centre to 23 March 2014, Keppel for students from various over three sessions that Volunteers gave Moral background, including those weekend. Although most Student Care Centre in Bedok with special needs. of the participants were North a new look by sprucing first-time painters, that up its interiors with a fresh Thirty-four Keppelites did not prevent them from coat of paint. Moral Student from different business accomplishing their tasks competently and having buckets of fun in the process.
First-time volunteer Low Li Ning, Group HR Executive from Keppel Corporation said, “It was very rewarding
to see the place transform Keppel Volunteers enjoyed a cool morning into a more cheerful and stroll around the National Orchid Garden with the elderly from Bedok Radiance energetic-looking place Seniors Activity Centre after hours of hard work. We are happy to be able to provide a more conducive Event organiser Koh Wei environment for the students Hang, Operation Engineer to study in after school.” from Keppel Shipyard shared, “We were initially worried Bring out the smiles about the wet weather, but On 5 April 2014, Keppel I can tell that the old folks Volunteers took some 27 enjoyed themselves from senior citizens from Bedok the smiles they wore on Radiance Seniors Activity their faces. It was especially Centre out for an excursion heart-warming for me to at the National Orchid see an elderly couple who Garden. looked so loving together when they took photos with Strolling to the light drizzle the flowers and laughed that helped to cool the happily throughout their day, participants enjoyed walk. Sometimes, all it takes the beautiful scenery from is spending quality time underneath their umbrellas together to bring some and shelters that lined the sunshine and warmth into
walkway. the lives of others.” keppelite Keppel Volunteers joined hands to give the Moral Student Care Centre a bright, fresh coat of paint
Keppelite I April 2014 BackPage 40
First for Brazil P-61, the first TensionL eg Wellhead Platform (TLWP) in offshore Brazil has been successfully installed by FloaTEC, a joint venture company between Keppel FELS and McDermott.
A specialist technology connecting them to the Leveraging the support and collective capabilities and firm for deepwater floating piles. The P-61 TLWP was capabilities of our parent strong execution which production systems, then floated over the eight companies, Keppel FELS Keppel O&M can offer to FloaTEC will also operate tendons, which was engaged and McDermott, we are the industry. This successful the facility for three years at the corresponding TLWP committed to providing delivery has proven that before handing over to the tendon porches and de- high-quality and value- the FloaTEC joint venture operator, the Papa-Terra ballasted into position. added solutions to our remains a strong, capable joint venture comprising The project was carried esteemed clients.” and experienced solutions Petrobras and Chevron. out with significant provider to the deepwater technical contribution Mr Wong Kok Seng, market.” The completion of P-61, by Chevron to the TLWP Chairman of FloaTEC as which is operating in the design, construction and well as MD (Offshore) of Mr David Dickson, President Papa Terra Field, Campos installation. Keppel Offshore & Marine and CEO of McDermott Basin, at a water depth (Keppel O&M) and Keppel s a i d , “ T h e p a t e n t e d of 1,180 m, leveraged the Mr TK Das, President of FELS said, “We are pleased Extended Tension Leg combined strengths and FloaTEC, said, “We are that the timely completion Platform technology from expertise of FloaTEC and its proud to have successfully and quality construction of FloaTEC, construction parent companies, Keppel engineered our first the topsides of the P-61 by capabilities of Keppel FELS, FELS and McDermott. The TLWP which will soon Keppel FELS contributed and offshore transportation design, fabrication and be operational. This to the success of this and installation experience completion of the TLWP demonstrates FloaTEC’s project. Together with the of McDermott combined w a s c o o rd i n a t e d a n d technical strengths, the excellent work done by to form a first-of-a-kind executed by FloaTEC. The expertise of our people our BrasFELS yard in Angra solution for this challenging topsides were engineered and the benefits of our Dos Reis, Brazil, the P-61 deepwater environment.”
in Houston by McDermott patented technology. is a perfect example of the keppelite and constructed in Singapore by Keppel FELS while the hull was designed by FloaTEC in Houston and fabricated in Brazil by Keppel FELS at its BrasFELS yard. The topsides and hull were then integrated at BrasFELS.
For the installation, eight piles were driven to the designated depth, while the installation team executed the critical task of assembling the 128 tendon sections into eight The P-61 TLWP is designed to operate with a Tender Assist Drilling Rig and equipped to receive and support work-over rig operations. It is fully full-length tendons and outfitted and equipped for drilling, completion and work-over operations on the wells Printed on recycled paper Printed on recycled
Keppelite I April 2014