Final resolution on KrisEnergy


 Keppel will recognise a loss of S$318mn in respect of its exposure to KrisEnergy in its first-half 2021 financial results.

 Total assessed recoverable amount is S$105.2mn. Recoverable amount and any further loss provisions will be re-assessed at the end of each subsequent financial reporting period.

 No impact on FY21e interim and final dividend from latest impairment.

 Maintain BUY and SOTP TP of S$6.12, with a 10% holding-company discount. Our TP translate to about 1.0x FY21e book value, a slight discount to its 5-year average of 1.05x. Catalysts expected from contract wins and a successful divestment of its Rigco.