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Keppel O&M orderbook at highest level in 15 years ahead of merger

Photo: Keppel keppel.jpg
Keppel Offshore & Marine’s (Keppel O&M) orderbook stands at its highest level since 2007 ahead of a planned merger Sembcorp Marine (Sembmarine).

Speaking at Keppel Corp’s annual results briefing on Thursday CEO Loh Chin Hua, said that its offshore and marine division had secured SGD8.1bn ($6.18bn) in new orders in 2022. The new orders brought Keppel O&M’s net orderbook to SGD11bn, its highest level since 2007.

“This includes the FPSOs projects with Petrobras, which are currently tracking on schedule and within budget,” Loh said.

In 2022 Keppel O&M achieved revenues of SGD2.8bn, the highest for the division in six years.

A merger of Keppel O&M and Sembmarine was approved by Keppel Corp shareholders in December and now requires approval from Sembmarine’s shareholders at an Extraordinary General Meeting on 16 February.

“Amidst improving conditions in the offshore and marine sector, we are optimistic that the combined entity, with a very strong order book and synergies realised from the integration, will be well positioned to seize opportunities in the evolving landscape,” Loh said.

If approved by shareholders Sembmarine will acquire Keppel O&M, the enlarged Sembmarine will then issue shares representing 54% of shares as consideration shares to Keppel. Sembmarine shareholders will own 46% of the combined company.

Current Keppel O&M CEO Chris Ong will become CEO of the merged yard group.