Keppel O&M's Second Quarter Net Profit Rises 14% to $216M

Keppel Corporation's offshore and marine subsidiary Keppel O&M posted second quarter net profit of $215.9 million (SGD 270 million), 14 percent higher than last year's $189.5 million (SGD 237 million), while revenue was 13 percent higher at $1.64 billion (SGD 2.06 billion), compared to $1.45 billion (SGD 1.82 billion), with the gains attributed to higher volume of work and revenue recognition for three jackups and one floating accommodation semisub, the Singapore firm said when releasing its quarterly financial results Thursday.

Keppel O&M's share of Keppel's revenue increased to 65 percent, up from 59 percent in the same period last year, while the offshore and marine division contributed 67 percent of the Group's net profit, down marginally from 68 percent a year ago.

New orders secured by Keppel O&M in the second quarter amounted to $1.03 billion (SGD 1.3 billion), including projects for the conversion of a floating liquefied natural gas (FLNG) facility and a floating production, storage and offloading vessel as well as a subsea construction vessel contract and a jackup repair job. The orderbook for Keppel O&M stood at $11.27 billion (SGD 14.1 billion) as at end June.

"As the FLNG market expands, we see opportunities for Keppel to offer safe, reliable and cost-effective solutions catering to the small and mid-sized LNG segments. Keppel Offshore & Marine Technology Centre has developed its own solutions for LNG liquefaction and transfer to facilitate the production of stranded or associated gas at remote offshore locations. Our established track record of having completed over a hundred complex FPSO, FSO and FSRU conversion projects, coupled with a growing pool of in-house FLNG expertise, puts us in good stead to offer quality solutions to some of the challenges faced by the offshore LNG industry," Keppel's CEO Loh Chin Hua said at a presentation on the firm's 2Q 2014 financial performance.


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