Keppel Corporation announces another record year. Their net profit grew by 14% to a new high of nearly $1.5 billion. This is the fifth year running that their net profit has surpassed the $1 billion mark.
Also for the fifth consecutive year, their Return on Equity has remained above 20%. Economic Value Added has also increased to $1,024 million for the year.
In 2011, their Offshore & Marine Division was able to capture a good share of the global high specification jackup orders, ending the year with a record level of orders secured totalling $10 billion. Most of these new orders were for their proprietary designs, in particular KFELS B Class jackup which is now setting the standard for the industry. They have also successfully launched KFELS Super A Class jackup, and secured the first deepwater drilling rig for their Angra yard from Sete Brasil.
Last year, they successfully delivered a total of 40 major projects.
Keppel has also moved into adjacencies in Offshore & Marine business, adding a new dimension to the business model to capture more value. In Brazil, Keppel is moving to build offshore support vessels in anticipation of demand, which will be offered for bare-boat charter or sale upon completion. Early this year, they expanded their suite of solutions for offshore wind farm installation with the acquisition of proprietary jacket foundation technology.
Prospects in 2012
In Offshore & Marine, Keppel will focus on executing the orders that they have secured, maintaining our track record for on-time, on-budget deliveries and extracting maximum value from each project. Global demand for oil is projected to continue rising. Major oil companies have also announced increased budgets for exploration and production to address the decline in production capacity and replace depleting reserves. Dayrates have been strengthening for both jackups and semisubmersibles.
Over the past year, their new proprietary products have been gaining market acceptance. The three KFELS N Class jackups, designed specifically for the harsh environment in the North Sea, have started working for their owner. First multi-purpose self-elevating platform has also secured a charter for wind farm foundation work in the North Sea. The accommodation semisubmersibles they delivered have also clinched long-term charters. KFELS Super A Class jackup for Ensco and a semisubmersible drilling tender for Seadrill, both ordered last year, have already been awarded charters.
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Offshore WIND staff, January 26, 2012; Image: kepcorp