Analysts on the lookout for red flags as KepCorp unveils Q1 results

Its book-to-bill ratios have fallen below crucial levels.

Analysts are looking out for warning signs when Keppel Corp unveils its first quarter results today.

Nicholas Teo of CMC Markets noted that although numbers are not expected to fall far from estimates, the street will be particularly interested in any updates especially on their engagements with rig owners for possible new bookings for 2015.

“In this regard, book-to-bill ratios have fallen below the ‘crucial’ level of 1X since last year. What this means is that they are unable to match the pace of securing fresh contracts compared to the rate that they are completing their orders on hand,” Teo stated.

If Keppel Corp’s order book depletes further without a reasonable degree of replacement, it could mean uncertainty for the business and low earnings visibility in the years ahead.

“Further risks may reveal themselves in the form of contracts being pushed-out or delayed, as rig owners contemplate a later delivery for the rigs they have ordered. This could be because they are having difficulty in securing rentals for the rigs ordered. So far this year we have seen several delays (for later delivery) being announced, with anecdotal evidence suggesting more delays yet to come,” Teo noted.

The people you want to reach are already in this room.

Every quarter, SBR lands on the desks of the founders, CFOs, and directors running Asia's most consequential companies. Every day, they open our newsletter and read our website. It's a room that took twenty years to build — and it's the one most of our partners are trying to get into.

The good news is that the door is open. We work with companies on thought leadership articles, sponsored content, industry summits across Southeast Asia, regional awards programmes, podcasts, and media placements in print and digital. The shape of the right partnership depends on what you're trying to do, which is why we'd rather start with a conversation than send a rate card.

If you have something this room should know about, tell us. We'll tell you honestly whether we can help, and how.

No rate cards until we understand the brief. It's a better use of everyone's time.

Book a meeting

| Or download the media kit (PDF)

240,000 senior readers quarterly in print Top 1,700 Singapore companies reached

7 markets across Southeast Asia