The quarterly loss is the first recorded by the Singapore conglomerate since it began quarterly reporting in 2003 with penalties and related costs resulting a SGD619m one-off hit to Keppel's financial results.
The fines were the result of global resolution with the authorities in Brazil, the US and Singapore, relating the period 2001 and 2014 when Keppel paid approximately $55m in bribes to officials from Petrobras and the then governing party of Brazil in order to win 13 contracts with Petrobras and another Brazilian entity, Sete Brasil.
For the year as whole Keppel reported a net profit of SGD217m, while its offshore and marine division reported a net loss of SGD216m, excluding the one-off penalities.
Keppel ceo Loh Chin Hua made a clear attempt to draw a line under the corruption scandal at its annual results briefing on Thursday, its first since the penalties were announced.
Describing 2017 as “an eventful year” Loh said: “ The global resolution reached by Keppel Offshore & Marine (Keppel O&M) over past misdeeds in Brazil brings an end to what has been a painful chapter for Keppel - one that we have recognised and dealt firmly with.”
Six former senior executives of Keppel were highlighted in US court documents related to the corruption settlement.
“Our core value of integrity prohibits Keppel from engaging in any unethical practices or behaviour. This is absolutely clear to me as ceo. We will not tolerate any behaviour or action from Keppelites that deviates from this fundamental principle,” Loh stated.
Keppel has so far paid 25% of the penalty, and expects to pay a further 12.5% in March and 50% most likely in May.
Loh said with being a global settlement with the three authorities the company expects it to be final.
“The company will have to work very hard to demonstrate we have a strict compliance regime. That has not stopped customers from working with us,” he said in response to questions.
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