Keppel O&M Posts Net Profit of $211M for 4Q 2013, Up 27% YOY

Keppel Corporation's offshore and marine unit (Keppel O&M) posted net profit of $211.16 million (SGD 270 million) for fourth quarter of 2013, up 27 percent from the previous year's $165.8 milion (SGD 212 million), while revenue increased 21 percent in the same period to $1.62 billion (SGD 2.07 billion) due to new jobs and deliveries, according to financial results released by the company Thursday.

The offshore and marine segment contributed $5.58 billion (SGD 7.13 billion), or 58 percent of Keppel's revenue in 2013, 11 percent lower than in 2012, while net profit fell marginally during the corresponding period to $727.45 million (SGD 930 million), down 1 percent from a year earlier.

Keppel O&M clinched $5.48 billion (SGD 7 billion) worth of new contracts in 2013, with the net orderbook standing at about $11.1 billion (SGD 14.2 billion) as at Dec. 31, 2013. For 4Q 2013, Keppel O&M secured $1.64 billion (SGD 2.1 billion) of new orders, comprising 7 jackups and 3 floating production, storage and offloading (FPSO) conversion/upgrades.

The Singapore contractor managed to deliver a record 22 rigs last year, which the firm said it achieved through investment in new technology and equipment, optimization of its building processes, as well as leveraging on the firm's satellite yards in the region.

"Our decision to proceed with the construction of the new Keppel Can Do drillship ... is a step towards meeting the needs in the industry for vessels capable of performing development and completion drilling in addition to exploration drilling," Keppel's CEO Loh Chin Hua said in a press release as the company attempts to differentiate itself from the competition.


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