Keppel sees slow recovery

Singapore

SINGAPORE, January 26, 2017 – Singapore’s Keppel on Thursday announced its fourth quarter and full-year 2016 results, with the company bracing for a prolonged slump in the offshore sector.

The multi-business group reported a net profit of USD 551 million for the full year, down from USD 1.07 billion in 2015. Keppel’s fourth quarter figures were down too, falling 65% year-on-year to USD 100 million.

The company pointed to “lower contributions’ from Keppel Offshore & Marine as weighing down the overall performance. The division nonetheless recorded a net profit of USD 20 million over 2016, albeit it at a high cost. Keppel O&M last year eliminated 10,600 positions. The unit’s yards aim to complete 20 projects in the current year, both newbuilds and conversions.

Commenting on the results, Keppel CEO Loh Chin Hua said the offshore business remains “under pressure from weak utilisation of the existing operating fleet.” He further stated that a quick recovery was not on the cards.

“We are thus prepared for the challenging conditions in the offshore business to remain for some time,” Hue said.