Strengthening Connectivity
Total Page:16
File Type:pdf, Size:1020Kb
A Publication of Keppel Corporation ISSUE 02 2021 www.kepcorp.com/ekeppelite Global Building Strengthening Keppelites water connectivity Forum 2021 resilience MCI (P) 031/01/2021 24 16 22 Contents 1 Editor’s Note GETTING TO KNOW YOU Editorial Advisor 2 Keppel Corporation Business Updates Ho Tong Yen In conversation 34 Spotlight on: Mr Tan Boon Leng 11 Keppel REIT Key Business and Operational Updates 36 Refreshed retail spaces Editor Sue-Ann Huang 12 Keppel DC REIT at i12 Katong Key Business and Operational Updates 37 Strategic partnership 13 Keppel Pacific Oak US REIT for global expansion Copy Editors Key Business and Operational Updates Robust health and safety Ariel Tee, Fiona Aw 14 Changes to Keppel Corporation’s Board management 16 Global Keppelites Forum 2021 38 Leadership appointments 20 Positioned for the future with Vision 2030 Going green Editorial Team 21 Building a sustainable future Ang Lai Lee, Brian Lee, Casey Chiang, 22 Building water resilience HSE MATTERS Dorothy Lim, Elizabeth Widjaja, Frances Teh, 24 Strengthening the Grace Chia, Guo Xiao Rong, Ivana Chua, connectivity business 39 Strengthening safety culture Lee Wan Jun, Loh Jing Ting, Nikki Lam, 26 New world of opportunities with 5G Roy Tan, Serena Toh, Tang Yi Bing, Victor Heng, 27 M1 unveils new brand identity 40 Sustainability accolades Woon Pek Yong, Yolanda Guo 28 Charging into the future 41 Enhancing capabilities Email: [email protected] 29 Versatile partner 42 Celebrating women Website: kepcorp.com/ekeppelite 30 Delivery of second LNG carrier 44 Standing tall in the Philippines linkedin.com/company/keppel 31 Asia’s first ship-to-containership 45 Engaging Keppelites youtube.com/KeppelCorporationLtd LNG operation 46 Connecting seniors 32 Keppel Capital launches 47 Empowering lives Keppelite is a publication of Keppel China logistics property fund 48 Caring for the community Corporation, and is published quarterly Alpha secures 50 Paying it forward by the Group Corporate Communications separate account mandate 51 Doing good in China Division. All rights reserved. Permission from 33 Driving the Eco-City’s development 52 Making a stand for Mother Earth the publisher is required for reproduction by any means in whole or in part. Cover image: Keppel is strengthening its connectivity business through a joint build agreement to jointly own and develop the Bifrost Cable System, the world’s first subsea cable system that directly connects Singapore to the west coast of North America, which is expected to be completed in 2024 and span more than 15,000 km. 1 EDITOR'S NOTE Editor’s Note 2021 started on a positive note with develop, own and operate electric obstacles that could stand in the way Keppel Corporation announcing that vehicle (EV) charging infrastructure of achieving Vision 2030, and called on net profit for 1Q was slightly higher in Singapore, as well as pursue other all staff to work together as OneKeppel, year-on-year, with all key businesses EV-related opportunities in the region accelerate the execution of our common profitable, apart from Keppel Offshore (page 28). Separately, Keppel O&M vision and transform Keppel into a & Marine (Keppel O&M). However, continued to pursue opportunities in powerhouse of solutions for sustainable Keppel O&M has returned to positive renewables and gas-related solutions, urbanisation. EBITDA in 1Q 2021, as it continues with securing approximately $66 million of its transformation plans (pages 2 to 6). contracts to upgrade and repair wind Keppel continued to be rated highly turbine installation and gas-related vessels. on international benchmarks for its Keppel continued to focus on executing sustainability performance, and has Vision 2030, and has announced new Following close to 12 years as Chairman retained the highest triple-A rating in initiatives such as the development of of Keppel Corporation, Dr Lee Boon Yang the Morgan Stanley Capital International the Bifrost Cable System, the world’s has retired as non-executive Chairman (MSCI) environmental, social and first subsea cable system that directly and Director of the Company. Dr Lee governance (ESG) ratings, a rating it has connects Singapore to the west coast has been succeeded by Mr Danny Teoh, held since February 2020 (page 40). of North America via Indonesia through a longstanding director of the Company, the Java Sea and Celebes Sea (pages and formerly Chairman of the Audit The Group also continued to give back to 24 and 25), as well as M1’s unveiling of Committee (pages 14 and 15). We would the community and brighten lives through its refreshed brand identity, supported like to express our deep appreciation various outreach initiatives, including by a full digital transformation (page 27). to Dr Lee for his many valuable helping low-income seniors to be more Keppel Land also completed the contributions to the Group, and welcome connected with their communities using divestment of three projects across Mr Teoh in his new role. digital tools and distributing festive China, Vietnam and the UK, while its goodie bags to underprivileged families home sales also improved, tripling In his message at Global Keppelites over the Lunar New Year. Joining the fight year-on-year to 1,360 units in 1Q 2021. Forum 2020, the annual Group-wide against COVID-19, Keppelites volunteered global townhall, Mr Loh Chin Hua, to support the roll out of COVID-19 Advancing the Group’s ambition CEO of Keppel Corporation, spoke about vaccination for frontline staff and migrant to make sustainability its business, Keppel’s Vision 2030 roadmap, and workers in the offshore & marine sector Keppel Infrastructure and PUB officially emphasised that sustainability will be at (pages 46 to 51). opened the iconic Keppel Marina East the core of Keppel’s strategy, with the Desalination Plant in February 2021 goal to “not just operate a sustainable We hope you enjoy your read of (pages 22 and 23). Keppel Infrastructure business, but to make sustainability our Keppelite. also announced plans to form a joint business” (pages 16 to 19). Mr Loh also venture with StarCharge to invest in, cautioned Keppelites about the potential Keppelite Editor 2 3 Keppel Corporation Business Updates Keppel Corporation provides 1Q 2021 Business Update Keppel Corporation recorded a net business units including Keppel Data (Keppel T&T) announced an investment profit in the first quarter of 2021, which Centres, M1 and Keppel Capital.” of $467 million in a joint build agreement was slightly higher year-on-year. All with Facebook and Telkom Indonesia key business units apart from Keppel In the Energy & Environment segment, to jointly own and develop the world’s Offshore & Marine (Keppel O&M) were Keppel O&M returned to positive EBITDA first subsea cable system that directly profitable. Nevertheless, Keppel O&M’s in 1Q 2021, as a result of quarter-on- connects Singapore to the west coast performance has also improved quarter- quarter improvements in margins and of North America via Indonesia through on-quarter with EBITDA for 1Q 2021 productivity. Apart from $66 million of new the Java Sea and Celebes Sea. A binding turning positive due to improving margins contracts secured in 1Q 2021 for various term sheet has been signed with leading and productivity. upgrading and repair projects including Philippine fibre broadband provider wind turbine installation and gas-related Converge Information & Communications The Group’s revenue was $1,889 million vessels, Keppel O&M is presently in Technology Solutions, Inc. (Converge) to for 1Q 2021, which was stable compared advanced discussions with Petrobras on the grant Converge an Indefeasible Right of to $1,857 million a year ago, mainly due P-78 floating production storage offloading Use (IRU) for one fibre pair on the main to higher contributions from the Urban (FPSO) vessel project. Keppel Corporation trunk of the Bifrost Cable System. Development and Asset Management continues to make good progress with the segments, offset by lower revenues from organic transformation of Keppel O&M and In the Asset Management segment, Energy & Environment. is also exploring inorganic options. Keppel Capital continues to grow with the launch of a China logistics property fund The Group’s net gearing was lower at Keppel Infrastructure continues to make with an initial equity commitment of about 0.88x as at 31 March 2021, compared to good progress on its environmental RMB1.4 billion, and the securing of a $360 0.91x as at 31 December 2020, mainly projects in Hong Kong and Singapore, million separate account mandate from due to higher equity. The divestment and has announced plans to form a joint Dutch pension fund manager, PGGM. of Keppel Bay Tower, which is targeted venture with StarCharge to invest in, for completion in 2Q 2021, would have develop, own and operate electric vehicle Separately, KrisEnergy announced on further reduced the Group’s net gearing (EV) charging infrastructure in Singapore, 20 April 2021 that its restructuring plan to 0.83x as at 31 March 2021 had it been as well as pursue other EV-related was no longer viable and that material completed in 1Q 2021. opportunities in the region. uncertainty existed over its ability to continue as a going concern, given the Mr Loh Chin Hua, CEO of Keppel In the Urban Development segment, significantly lower estimated ultimate Corporation, said, “Keppel’s business units Keppel Land’s home sales tripled year- recovery and cashflow from the Apsara made creditable progress in the first quarter on-year to 1,360 units, underpinned by Mini Phase 1A development. Keppel of 2021, against the backdrop of a gradual stronger performance in China, Vietnam Corporation had announced on the recovery from the pandemic. In line with and Singapore . Keppel Land also same day that it is, together with its Vision 2030, we have continued to launch completed three divestments in China, financial advisor, evaluating the impact new initiatives, such as the Bifrost Cable Vietnam and the UK during the quarter.