Keppel cuts 3.000 jobs. Profit down

  • Exploration & Production

The CEO said that there was still a chance for some of the workers “especially those with strong engineering and project management expertise” to be redeployed to other business units within the group.

For the first nine months, the offshore and marine division has secured new contracts worth about S$500 million. No too long ago, in early 2014, Keppel would earn a larger amount in a single jack-up rig order.

On a more positive note, the CEO said the company sees continued interest in FPSO conversions and production solutions such as tension leg platforms and semi-submersible production units, as well as opportunities for the development of specialized vessels. The company also plans to expand its LNG business.

“Rightsizing of our Keppel O&M business will continue as we prepare for an extended period of weaker demand for new oil rigs. We are not just cutting costs and surviving the downturn in the offshore industry, but are also investing prudently in new capabilities and exploring new markets and opportunities.”

“Our aim, as always, is to emerge from this downturn stronger. We are looking at re-purposing the technology that we have developed in the offshore industry for other uses such as floating power plants and floating desalination plants. We expect that our O&M business will be increasingly diversified beyond just oil and gas,” the CEO said.

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