A record order intake has boosted the orderbook of Keppel Corp’s offshore and marine division to SGD 9.1bn ($7.5bn) with deliveries extending into 2014.
Net profit of Keppel Corp for the first half was 7% ahead of the same period of last year at SGD 696m with the second quarter rather better at SGD 385m, a 9.3% improvement on the comparable period of 2011.
Offshore and marine is by far the biggest business activity of the diversified Keppel group accounting for more than half of total revenues and profit.
Offshore and marine had first half revenues of SGD 2.5bn some 14% down on the same period of 2010. The second quarter revenue was 7% down at SGD 1.3bn compared to quarter two last year.
But offshore and marine’s net profit however held up at SGD 475m and SGD 259m for the first half and second quarter respectively, a 6% and 7% increase on the same period of last year.
Keppel Corp is involved in offshore rig design with Keppel FELS building the units, Keppel Shipyard undertaking vessel conversions and repairs while Keppel Singmarine builds offshore support vessels and ice class tugs.
Strong day rates for high specification jack-up rigs continued to drive orders with the offshore and marine business securing SGD 7.2bn of new orders in the first half with the figure for the year to date moving up to SGD 7.4bn.
Keppel Corp chief executive, Choo Chiau Beng, said the order intake included 13 jackups, a semi-submersible and a North Sea compliant accommodation semi-submersible.
Choo said Keppel was readying itself for growing demand for FPSOs. Recently completed projects included the conversion of the 168,000-dwt tanker Lewek Emas (built 1978) into an FPSO of the same name.
Published : July 22, 2011