Singapore’s offshore rig builder Keppel has reported its net profit of S$332 million for the fourth quarter of 2013, a 9% increase compared to 4Q 2012’s S$305 million.
The company’s full year net profit decreased 26% to S$1.4 billion, compared to 2012’s S$1.9 billion. Net Profit for 2012 included recognition of sale of units at Reflections at Keppel Bay and higher gains from disposals of equity investments.
Loh Chin Hua, CEO, Keppel Corporation said: “Against the volatility in 2013, I am pleased to announce that Keppel Corporation has performed creditably. Excluding revaluations, our Net Profit was $1.4 billion and our Return on Equity was 14.9%. Economic Value Added was $939 million for the year. Including revaluations, impairments and divestments, Net Profit for the year was $1.85 billion and Return on Equity was 19.5%.
“Whilst Net Profit for 2013 is 26% lower than for 2012, the prior year’s numbers were boosted by the completion and recognition of lumpy profits from sale of units at Reflections, something that we had cautioned will not be repeated in 2013. The net contribution to the bottom line in 2012 from sale of units at Reflections as well as disposal of an equity investment amounted to over $650 million.”
Keppel Offshore & Marine business secured about $7 billion of new contracts for the year from new and repeat customers. Its net orderbook stands at about $14.2 billion as at end December 2013, with earnings visibility extending into 2019. The company last year delivered 21 offshore rigs, setting a new record for the most number of rig deliveries by a company in a year.
“Global energy demand is projected to continue to rise with increased urbanisation and economic growth in developing countries. E&P spending is expected to increase to meet this trend and boost depleting oil and gas reserves. This positive development will benefit the Offshore and Marine industry,” Keppel said in a presentation.
January 23, 2014