Although Keppel Offshore & Marine (Keppel O&M) remained in the red in Q1 this year with an SGD23m ($17.6m) loss, Keppel Corp ceo Loh Chin Hua said that there was growing confidence in the sector underpinned by improved oil prices. “While there are pockets of opportunities in niche markets, it may take some time before we can see sustained recovery across the board,” he commented.
Keppel O&M's core jack-up rig market, where it occupies the position of the world's largest builder, remains in a difficult place. “The jack-up market continues to be plagued by a supply overhang, with both utilisation and day rates remaining soft,” Loh said.
First rig contract since 2014
The first quarter though did see Keppel securing its first rig order since 2014 a contract to build a midwater harsh environment semisubmersible worth about $425m for Awilco Drilling. Loh said the order, “demonstrates that despite the downturn, the industry continues to have a preference for high specification rigs to be built by a reliable partner”.
It has helped boost Keppel's orderbook which at the end of Q1 stood at SGD4.3bn compared to SGD3.9bn at the end of 2017.
Keppel has also started early works on its second floating LNG (FLNG) conversion for Golar.
Investing in digitisation
Like many other companies in the maritime and offshore industries is investing in digisation and AI for the future.
“To help our customers improve operational efficiency and lower costs across the project life cycle, Keppel O&M is developing rigs of the future through increasing digitisation, utilising smart sensors, capturing and analysing data, and offering enhanced solutions. With these rigs, we aim to transform the current operating environment to become more efficient and versatile, without compromising on safety,” Loh said.
Keppel O&M is also investing robotics and AI to improve its manufacturing processes.
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