In perhaps one of the biggest corporate shake ups in recent decades, Keppel shocked investors by dropping the bombshell that it will exit the oil rig building business. On this note, it seems that Keppel share price is heading toward unchartered waters. In December 2020, I wrote that Keppel share price could remain volatile against the backdrop of the new normal for global crude oil prices. Indeed, Keppel share price collapsed by 8% on 29 January 2021 after the announcement of a set of dismal FY2020 results.
Full-year losses amounted to a staggering $508 million. The losses were largely attributed to the $952 million of impairments, mainly from the Offshore & Marine business. Arising from this, investors wasted no time punishing this counter as Keppel share price spiralled out of control, falling from $5.40 to $5.00 on 29 January 2021.
In view of the challenging operating environment for Keppel, a long-time SG Wealth Builder Lifetime member quickly wrote in to request for my insights on Keppel share price. This member has been a loyal supporter of my blog, so I feel obliged to do an objective research on the outlook of Keppel share price.
Although it is widely expected that Keppel share price will plummet following the announcement of the full-year losses, what is truly shocking for most investors should be Keppel’s decision to exit the oil rig business. We are talking about the world number 1 oil rig builder exiting its core business. This is akin to Singtel exiting its telecommunication business. To be honest, the latest …Read more