■ Pursuant to KrisEnergy’s filing of a winding up petition, KEP will book a loss
of S$318m in respect of its exposures to KrisEnergy, based on recoverability.
■ As a guarantor via a bilateral contract with DBS Bank, KEP is also liable to
pay on demand the revolving credit facility of S$251m.
■ The payment is likely to be covered by asset recycling. We also estimate
c.S$309m of gains to offset the loss. Reiterate Add and TP of S$6.40.
■ This could mark the last vestige of ‘legacy’ issue and remove the overhang
on KEP as it has been plagued by KrisEnergy’s weak performance.