Keppel slashed thousands of jobs in 4Q as loss deepened

Singapore’s rig builder Keppel Offshore & Marine has reduced its workforce by 2,620 in the last quarter of 2016 and over 10,000 during the year. The company has also made plans to close three yards in Singapore. 

In its 4Q 2016 report on Thursday, the company said that, apart from reducing variable costs, it has also worked on cutting overheads, achieving cost savings of some S$150 million year-on-year.

In the fourth quarter 2016, Keppel O&M reduced its direct workforce by 2,620 or about 11.8% from the previous quarter. This includes a reduction of about 1,930 in Singapore and 690 in overseas yards.

For the whole of 2016, Keppel O&M reduced its direct workforce by about 10,600 or 35%, with about 3,800 in Singapore and 6,800 overseas. Subcontract headcount in Singapore, which has already been lowered significantly, was further reduced by about 3,300.

“The painful but necessary measures to rightsize our O&M Division must continue,” the company said in the report.

In tandem, the rig builder is also cutting its yard capacity and has mothballed two overseas yards. In Singapore, Keppel O&M is in the process of closing three yards.

The company posted a bigger net loss for the fourth quarter of 2016 totaling S$138 million, compared to a loss of S$60 million in the same period of 2015.

During the fourth quarter 2016, the company’s revenues dropped by 40 percent to S$800, compared to S$1.323 billion in the corresponding period of 2015.

Offshore Energy Today Staff