Announcing its second quarter results Keppel said that ceo Choo Chiau Beng, who has a longstanding offshore and marine background would be standing down at the end of the year, as would the head Keppel Offshore and Marine (Keppel O&M), Tong Chong Heong, from 1 February 2014. Both Choo and Tong have spent almost their entire careers in the offshore and marine industry and are well known figures within it.
Choo will be succeeded by Keppel Corp cfo, Loh Chin Hua, whose background is primarily from Keppel’s property business Keppel Land, while taking the helm at Keppel O&M, will be current coo of the division YY Chow, who has over 30 years experience in the offshore and marine business.
The move comes as Keppel has secured S$3.5bn in offshore and marine newbuilding orders so far this year bringing its net orderbook to S$13.1bn. Looking ahead Choo said: “The industry fundamentals remain sound, backed by rising energy demand from emerging countries as well as depletion in existing oil fields. On the other hand, mounting competition from Korean and Chinese yards continues to suppress prices and margins for newbuild rigs.”
With a new ceo from a property sector background 2014 Keppel pledged to continue its existing business strategy. “At the end of the day for a group like Keppel we examine well and choose the right business to be in. [There is] no difference from what we have been doing for so many years,” said Loh.
“We know it’s very risky to be in just one business,” commented Choo.
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