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Keppel Corporation reported a 41% fall in IQ earnings to $211 million, or 11.6 cents, from a year ago. Keppel said the higher contribution from its property division at 47% helped to partially offset lower profits from Offshore & Marine.
Its Offshore & Marine division delivered three drilling jackups in IQ, including one unit to Gulf Drilling International at the start of the year. It also delivered a liftboat and a Transformer platform.
Keppel said it is working closely with our customers for “winwin outcomes” wherever possible. Earlier this year, Transocean and Ensco have announced the deferment of their projects.
Deliveries of two other jackups, for Clearwater and BOT Lease Co, have also been deferred to next year, while deliveries of two semis are deferred from 2017 to 2019/2020.
“We do not need to make provisions for any of these contracts currently. However, we are monitoring the situation carefully and are focused on executing our projects well,” says Keppel CEO Loh Chin Hua.
Meanwhile, its property division sold about 940 homes, mostly in China. This is higher than the 720 homes sold in the same quarter last year. As for its infrastructure division, Keppel is pursuing growth opportunities in key areas such as gas-to-power and waste-to-energy both in Singapore and overseas.
Keppel Corp closed 1.96% lower at $6.00 on Monday.
This article first appeared in The Edge Singapore Market Report.