Keppel Corporation

    Keppel Corporation SWOT & PESTLE

    • Report

    • ID: 534411
    • 15 Pages
    • August 2022
    • Region: Asia
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    About Keppel Corporation

    Keppel Corporation (Keppel Corp) is a Singaporean conglomerate headquartered in Keppel Bay Tower, HarbourFront. The company is made up of several affiliated companies that specialize in offshore and marine, property, infrastructure, and asset management. The company was founded in 1968 as Keppel Shipyard at Tanjong Pagar's Keppel Harbour before moving its operations to Jurong, where it focused on offshore and marine activities. Keppel Offshore & Marine (the world's largest oil rig builder) and Keppel Land (the world's second most sustainable diversified real estate developer) are two notable Keppel subsidiaries. The Singapore Apex Corporate Sustainability Awards 2021 named Keppel Corporation (Keppel) the Apex Winner in the Sustainable Business category. In August 2022, Keppel Shipyard, a wholly owned subsidiary of Keppel Offshore & Marine (Keppel O&M), has won an international tender from Petroleo Brasileiro S.A (Petrobras) for the engineering, procurement, and construction (EPC) of P-80, a Floating Production, Storage, and Offloading vessel (FPSO), for approximately US$2.9 billion.

The USP of Keppel is that it is the world’s largest oil rig builder. Keppel’s mission statement as per its annual report is that it will be “Guided by our operating principles and core values, we will deliver solutions for sustainable urbanisation profitably, safely and responsibly.” Keppel’s vision statement is “A global company at the forefront of our chosen industries, shaping the future for the benefit of all our stakeholders – Sustaining Growth, Empowering Lives and Nurturing Communities”.

    Business Sector

    Shipping, Marine Property and Infrastructure

    Operating Geography

    Singapore, Asia, Global

    Revenue

    SG$8.6 billion - FY ended December 31st 2021 (year-on-year growth of 31%)

    SG$6.6 billion - FY ended December 31st 2020

    SWOT

    SWOT Matrix for Keppel

    Strength

    Weakness
    1. One of the largest builders of oil rigs
    2. Delivers strong financial performance and returns
    3. Continued investment in technology to support expansion
    4. Strong positioning of O&M sector in the future
    5. Strong focus on strengthening its position in the offshore renewables sector
    6. Developments in the key market areas of Urban development sector
    1. Decreased revenue from ASEAN countries

    Opportunity

    Threat
    1. Keppel Land is making progress toward becoming a provider of asset-light urban space solutions
    2. Proposed merger of Keppel O&M and Sembcorp Marine will provide growth opportunities in O&M
    3. Strategic M&As will lead to growth in the sectors
    4. Rise in data centers driven by demand for data and digitalization
    1. Growing competition poses risk of crumbling market share
    2. Involvement in a number of lawsuits will impact reputation

    Detailed SWOT Analysis of Keppel

    The detailed SWOT analysis for Keppel Corporation is presented below:

    Strength

    1. One of the largest builders of oil rigs: Keppel Offshore and Marine is concerned with the design of offshore rigs, their repair and construction, ship conversion, ship repair and most importantly, specialized shipbuilding. It has 20 shipyards and offices spread across the world. This presence enables them to be close to potential markets if and when the need arises. Keppel FELS is the headquarters of the offshore division of the company. It specializes in building high-performance offshore rigs. Keppel FELS’ portfolio of designs and production solutions meets demand for a wide range of operating requirements, from deep waters to hostile environments. The Marine division, maintained by Keppel Shipyard, is in the business of repairing a myriad range of different designs of ships and vessels. The division leads in Offloading and Floating Production Storage conversions, Storage and Re-gasification Units. The Specialized Shipbuilding division of Keppel Corp is led by Keppel Singmarine. It specializes in building customized vessels, multi-purpose Offshore Support Vessels and tugboats. It also provides advanced solutions to ship-building like ice-capable vessels for worldwide use. Together, these divisions create a strong portfolio of products and services that the company has the ability to offer to its customers.

    The remaning points in this section is available only in the "Complete Report" on purchase.

    Weakness

    This section is available only in the "Complete Report" on purchase.

    Opportunity

    This section is available only in the "Complete Report" on purchase.

    Threat

    This section is available only in the "Complete Report" on purchase.

    PESTLE

    PESTLE Matrix for Keppel

    Political

    Economic
    1. Amicable relations with the Government
    1. Rising oil prices and improvement in market conditions shows a positive sign

    Social

    Technological
    1. Undertaking CSR activities and promotes sustainable growth
    2. Rising trends such as social distancing, ageing population, etc. have shaped the future of businesses
    1. New innovations through R&D capabilities
    2. Rising innovation in the submarine cables
    3. Enhancing digital connectivity by implementing 5G

    Legal

    ENVIRONMENTAL
    1. Land acquisitions and related issues
    1. Rising focus towards sustainable water and waste management
    2. Increasing investment in energy efficiency to cope with climate change

    Detailed PESTLE Analysis of Keppel

    The detailed PESTLE analysis for Keppel Corporation is presented below:

    POLITICAL

    1. Amicable relations with the Government: The Singapore Government has supported Keppel Corp in most of its ventures since it sees economic growth of the country as a whole with Keppel Corp flourishing. Ocean Mineral Singapore Pte Ltd (OMS), majorly owned by Keppel Corp, recently entered into a 15-year contract for the exploration (associating with the International Seabed Authority (ISA)) of polymetallic nodules within the Clarion-Clipperton Fracture Zone of the Pacific Ocean. The project has been sponsored by the Singapore Government. Over the years, Keppel Corp has maintained amiable relations with the Singapore Government, making political donations and opening charitable trusts as a sign of their acknowledgment of the Government’s support towards their organization

    ECONOMIC

    This section is available only in the "Complete Report" on purchase.

    SOCIAL

    This section is available only in the "Complete Report" on purchase.

    TECHNOLOGICAL

    This section is available only in the "Complete Report" on purchase.

    LEGAL

    This section is available only in the "Complete Report" on purchase.

    ENVIRONMENTAL

    1. Rising focus towards sustainable water and waste management: Governments all over the world have announced planned infrastructure investments in the coming years as they recognise the need for more sustainable water and waste management solutions to handle the world's rapid urbanisation. Keppel Infrastructure's 2021 priorities remained the execution of its projects in Singapore and abroad with a focus on quality and safety. The Keppel Marina East Desalination Plant, Singapore's fourth desalination facility, was formally inaugurated in February 2021, enhancing Keppel's position as a supplier of water solutions. In the meantime, the first Integrated Waste Management Facility (IWMF) in Singapore continued its engineering design and procurement efforts in preparation for the start of significant site construction in 2022. The Materials Recovery Facility and IWMF WTE facility will be among Singapore's biggest of these facilities when they are finished in 2024. In Hong Kong, despite supply chain disruptions brought on by COVID-19, the prefabrication of process modules and reclamation work continued to advance. The IWMF projects in Hong Kong and Singapore were each 22.7% and 40.6% finished as of the end of 2021. Keppel Infrastructure successfully put into operation two WTE plants in Beijing and Xi'an on the mainland of China. With the Chinese government's plans to increase the nation's urban municipal waste incineration capacity to 800,000 tonnes per day by the end of 2025, Keppel is in a good position to take advantage of opportunities in China as one of the top and most dependable WTE technology solutions providers in the country.

    The remaning points in this section is available only in the "Complete Report" on purchase.

    Table of Contents

    • Company Overview
      • 1.1 About the Company
      • 1.2 Business Sector
      • 1.3 Operating Geography
      • 1.4 Revenue
    • SWOT Analysis
      • 2.1 SWOT Table/ SWOT Matrix
      • 2.2 SWOT Overview
      • 2.3 Detailed SWOT Analysis
      • 2.4 Strength, Weakness, Opportunity and Threat
    • PESTLE Analysis
      • 3.1 PESTLE Table/ PESTLE Matrix
      • 3.2 PESTLE Overview
      • 3.3 Detailed PESTLE Analysis
      • 3.4 Political, Economic, Social, Technological, Legal and Environmental
    • Appendix
      • 4.1 Major Competitors
      • 4.2 Business Sectors / Diversification
      • 4.3 References used to prepare this reports
    • Conclusion
      • 5.1 Closing thoughts
      • 5.2 Methodology used to prepare this report
      • 5.3 Copyrights and Disclaimer

      References and Copyright

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