Keppel profit affected by rig building business

Keppel profit affected by rig building business.Keppel Corp., a Singapore conglomerate, posted a 41 percent drop in net profit for the first quarter of 2016.

The company’s profit was negatively affected by Keppel’s offshore rig building business, Keppel Offshore & Marine, as the low oil prices are taking a toll on everybody linked to the oil and gas industry. Aside from building offshore rigs for the oil and gas industry, Keppel also deals with properties and infrastructure.

Keppel Offshore & Marine recorded a 53 percent drop in net profit compared to the first quarter of 2015. Net profit was $95 million Singapore dollars.

The rig builder in the first quarter delivered three jack-up drilling rigs, one liftboat and one transformer platform.

Affected by the lack of demand for their services as the oil company are pulling breaks on drilling, the drillers are deferring their newbuild rig orders, thus affecting the rig builders. Keppel is no exception.

Loh Chin Hua, Keppel CEO said: “Earlier this year, Transocean and Ensco have announced the deferment of their projects. Deliveries of two other jack-ups, for Clearwater and BOT Lease Co, have also been deferred to next year, while deliveries of two semis are deferred from 2017 to 2019/2020. The  contracts are still valid, and we are working towards delivering them based on the new schedules agreed upon with our customers.

However, Loh Chin Hua said Keppel wouldn’t make provisions for any of these contracts currently, but he said Keppel was monitoring the situation carefully.

On the workforce front, the CEO said Keppel was “rightsizing” the organization in order to remain profitable.

“Since the start of 2016, our global workforce has been further reduced by 9.4% or about 2,800 headcount, of which 2,300 are from overseas yards, while 500 are from those in Singapore.”

Share this article

Follow Offshore Energy Today

Events>

<< Oct 2019 >>
MTWTFSS
30 1 2 3 4 5 6
7 8 9 10 11 12 13
14 15 16 17 18 19 20
21 22 23 24 25 26 27
28 29 30 31 1 2 3

Africa Oil Week 2020

For over 25 years Africa Oil Week has been the meeting place for Africa’s most senior E&P stakeholders.

read more >

CERAWeek 2020

 Each year, CERA clients gathered for a few days in Houston…

read more >

Offshore Technology Conference (OTC) 2020

The Offshore Technology Conference (OTC) showcases leading-edge technology for offshore drilling, exploration…

read more >

2020 EXPLORATION AND PRODUCTION STANDARDS CONFERENCE ON OILFIELD EQUIPMENT AND MATERIALS

The development of consensus standards is one of API’s oldest and most successful programs.

read more >

Jobs>

Looking to fill a job opening?

By advertising your job here, on the homepage of OffshoreEnergyToday.com, you'll reach countless professionals in the sector. For more information, click below...

apply

Looking to fill a job opening?

By advertising your job here, on the homepage of OffshoreEnergyToday.com, you'll reach countless professionals in the sector. For more information, click below...

apply