“Our yards completed 47 scrubber and ballast water treatment system retrofit contracts in the first nine months of 2019 worth over SGD80m ($58.6m), as shipowners strive to meet the IMO 2020 and IMO Ballast Water Management Convention regulations,” commented Loh Chin Hua, ceo of Keppel Corp, parent of Keppel O&M.
“We have received 100 scrubber orders since 2018 and continue to see more enquiries,” Loh said.
Loh added that the group’s efforts to build new capabilities and capture new opportunities are bearing fruit. Over the past four years, gas solutions and offshore renewables have contributed SGD2.4bn in new orders for Keppel O&M.
New contracts secured year-to-date amount to about SGD1.9bn, with close to 60% of these new orders for LNG and renewables-related projects.
Reflecting its progress in securing new orders and the increased workload, Keppel O&M reported a profit of SGD18m for the first nine months of 2019, compared to a loss of SGD38m in the year-ago period.
As at end-September 2019, Keppel O&M’s net orderbook stood at SGD5.1bn, excluding projects for Sete Brasil, compared to SGD4.3bn as at end-2018.
Keppel O&M has made SGD476m in provisions for the six semi-submersible newbuild rigs, after nearly five years of non-payment by Sete Brasil.
Loh believes that SGD476m in provision is sufficient based on the settlement agreement with Sete Brasil.
“The settlement agreement is still under discussion. It is not yet settled. But at this point, we believe the provisions are adequate and also reasonable,” Loh said.
The settlement agreement sees the Singapore shipyard owning four of the uncompleted rigs, and two by Magni Partners.
Looking ahead, Keppel O&M said it will continue to focus on delivering its projects well, exploring new markets and opportunities, investing in R&D and building new capabilities. It is also actively capturing opportunities in production assets, specialised vessels, gas solutions, offshore renewables and floating infrastructure, as well as exploring ways to re-purpose its technology in the offshore industry for other uses.