Keppel’s offshore division bounces back to the black

Singapore’s offshore rig builder Keppel Offshore & Marine bounced back to the black during the first quarter of 2019 from a loss in the same period of 2018.

Keppel Offshore & Marine Division’s revenues were flat year on year amounting to S$332 million (US$245M) in both the first quarter of 2018 and 2019.

The Offshore & Marine division registered a net profit of S$6 million for 1Q 2019, compared to a net loss of S$23 million a year ago, due mainly to a share of results from associated companies which turned profitable year on year, as well as lower taxes.

The division achieved a profit of S$3 million at the operating level for 1Q 2019, compared to S$8 million for 1Q 2018.

Keppel said that the O&M Division continues to pursue projects and opportunities in new markets and niche segments.

In the year to date, the O&M Division has won new contracts of about S$1 billion, or 59% of the S$1.7 billion secured for the whole of 2018.

The latest orders comprise a newbuild harsh environment semi-submersible for Awilco and contracts to upgrade a drilling semi-submersible and integrate an FPSO hull.

In addition, Keppel has received the Final Notice to Proceed from Golar LNG to start full conversion works with enhanced workscope worth US$242 million, bringing the total value to US$947 million for the Gimi FLNG project.

It is worth noting that Keppel Corporation reported a net profit of S$203 million for the first three months of 2019, 40% below that of S$337 million for 1Q 2018.

Offshore Energy Today Staff

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