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Profits down 56% at Keppel

Profits down 56% at Keppel
Singapore: First quarter net profit at Keppel Corporation was $331m in 2013, 56% down on the $751m earned in the same period in 2012.

Keppel Offshore and Marine's (Keppel O&M) 2013 first quarter revenues of $1.7bn are 15% down on 2012's $1.9bn. Net profits in the segment also fell from $235m in first quarter 2012 to $208m in the same period for 2013.

Commenting on the results Choo Chiau Beng, ceo of Keppel Corporation said, "The offshore and marine sector continues to benefit from growing energy demand. Years of underinvestment and the need to replace reserves and increase production are sustaining high levels of offshore capex. Enquiries and demand for our products and services continue to ride on these trends. The global demand for high-specification jack-up rigs still persists, and has translated into a number of new orders for the quarter."

First quarter highlights for the group include a recent run of orders for seven KFELS B Class jack-up rigs, bringing the new order value for the first quarter to $1.6bn and the total orderbook to $13.1bn with deliveries stretching to 2019.

"KFELS B Class has become an industry benchmark with a proven operating track record worldwide. Keppel O&M has delivered 42 KFELS B Class jackups since the year 2000, and has another 21 such units on order. We aim to sell more of these units from our growing proprietary portfolio," Choo added. Five B Class jack-up rigs were delivered ahead of schedule in the first quarter of 2013.