Keppel Corp has resumed its $500 million share buyback programme announced earlier this year, on the back of another positive earnings report on July 28.

On July 29, the company paid between $6.86 and $6.94 each for 550,000 shares, costing nearly $3.8 million.

The following three days, Keppel bought another 1.62 million shares, at prices ranging between $6.91 and $7. This brings its total volume of shares bought back under the current mandate to just nearly 31.74 million shares, or 1.7628% of its total share base.

Prior to July 29, the most recent buyback was on June 27, with 474,000 shares bought back at between $6.55 and $6.6 per share.

Singapore-listed companies have been advised that the “best practice” is to refrain from share buybacks a fortnight prior to quarterly earnings reports, and prior one month ahead of full-year announcements.

Since Keppel commenced the share buyback programme, its share price has gained nearly a third as of Aug 3.

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The company is in the midst of executing a turnaround of its business, following the oil and gas slump of the past few years. It has identified some $5 billion worth of assets for divestment, along with plans to invest in new growth areas such as renewable energy. The amount is the target Keppel has set for asset monetisation by end-2023. Keppel has, so far, identified $17.5 billion of monetisable assets, based on carrying value as at end-June 2020.

On July 28, the conglomerate reported earnings of $498 million for 1HFY2022 ended June 30, up 66% y-o-y over $300 million reported for 1HFY2021. Revenue in the same period was $3.36 billion, up 16% y-o-y, which Keppel attributes to a “significant” increase in contributions from its energy and environment, and asset management segments.

The company plans to pay an interim dividend of 15 cents per share, versus 12 cents per share paid for 1HFY2021, which was higher than the expectations of several analysts.

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In the 1HFY2022, Keppel’s offshore and marine unit, which is being restructured to merge with Sembcorp Marine, secured $256 million worth of new orders, bringing its net orderbook to $4.4 billion as at the end of June.

“These are very exciting times for Keppel as we prepare for a new phase in the company’s growth journey,” says Keppel’s CEO Loh Chin Hua.

“When the offshore and marine transactions are completed, the new Keppel will be very different from what we were before. With the global energy transition and decarbonisation efforts, Keppel is in the right space, at the right time.”

Tung Lok Restaurants (2000)

Goi Seng Hui, a substantial shareholder of restaurant operator Tung Lok Restaurants (2000), has been steadily increasing his stake recently by adding shares from the open market.

The most recent transaction was made on July 26, when Goi paid $889.67 each for 7,800 shares, which works out to 11.4 cents each. This brings Goi’s direct stake in the company to 806,500 shares.

In addition, Goi holds a deemed stake of another 53,531,280 shares in the name of his privately-held flagship company, Tee Yih Jia Food Manufacturing, giving him a total interest of 54,337,780 shares, or 19.8%.

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Goi’s earlier transactions were made on July 25, with 13,000 shares bought at 11.5 cents each; 7,500 shares bought on July 22 at 11.5 cents each; and 69,300 shares bought on July 21, also at 11.5 cents each.

On May 30, Tung Lok reported a full-year loss of $1.84 million for FY2022 ended March 31, versus earnings of $1 million a year earlier. Revenue in the same period was $52.2 million, down 12.6% y-o-y.

Tung Lok says that its FY2022 was a “challenging year”, given how its operations were subjected to “repeated on-off imposition” of safe management restrictions, which were triggered by the emergence of more virulent Covid-19 variants. These measures had caused “considerable economic hardship to the group’s business”.

However, in its earnings commentary, the company adds that with the gradual reopening of borders and recent easing of safe management measures in Singapore, its operations are showing positive signs of improvement with increased footfall and sales volume as Singapore transitions towards treating Covid-19 as endemic.

“While business momentum is expected to pick up, the group is mindful that the Covid-19 situation remains fluid, and expects headwinds such as intense competition, manpower shortages, cost pressures brought about by inflation as well as the evolving geopolitical climate,” the company notes.

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Keppel Corp resumes share buybacks; Goi ups stake in Tung Lok

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