Keppel posts first-quarter results

SINGAPORE , April 21, 2017 – Multi-business group Keppel Corporation late on Thursday announced its financial results for the first quarter of 2017, posting an increase in net profit.

Quarterly earnings were up 23% year-on-year to reach USD 186 million, yet the company’s performance was once again held back by lower profits from Keppel Offshore & Marine.

While the unit was able to breakeven, it is still plagued by a low volume of work.

Over the past months, Keppel Offshore & Marine “mothballed” two years overseas. It is also working to shut down three “supporting yards” in Singapore and is nearing the finalisation of its divestment from the Keppel Verolme yard in the Netherlands. Finally, reductions in headcount continue.

Commenting on the performance of the group as a whole, Keppel CEO Loh Chin Hua said, “Keppel Group has remained resilient, underpinned by our multi-business strategy, with different engines kicking in to steady the Group.”

In reference to the performance of the Keppel Offshore & Marine division, Hua noted that the difficulties came as no surprise.

“As we had cautioned at the Full Year 2016 results announcement in January, despite the increased optimism in the market following the rebound in oil prices, the offshore business continues to face very challenging conditions. This is due to, among other factors, the oversupply of rigs and support vessels. It will take some time before the industry fully recovers.”

At the end of March 2017, Keppel Marine & Offshore had an order book volume of USD 2.51 billion.

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