Keppel O&M Marks Fifth Anniversary
Keppel Offshore & Marine Limited (Keppel O&M) has grown its revenue 300% since its inception in 2002.
The company celebrated its fifth anniversary on 1 May 2007. In the last five years, Group revenue increased from S$1.9 billion in 2002 to S$5.7 billion in 2006. Attributable profit of S$459 million was up more than 220% in 2006 compared to 2002's performance.
In rigbuilding, Keppel O&M's offshore business has expanded from building four jackup rigs and one semisubmersible in 2002 to the construction of 27 jackup rigs, two mammoth deepwater semisubmersible (semis) production platforms and eight drilling semis in 2007.
In shiprepair and conversion, the Keppel O&M Group is currently servicing up to 10 major Floating Production Storage and Offloading (FPSO) vessels while the specialized shipbuilding division is building around 30 Offshore Support Vessels (OSVs).
The Group has also achieved breakthroughs in technology innovations, entered new markets and seized new business opportunities. Today, it has a global network of 20 yards as part of its "Near Market, Near Customer" strategy.
Mr Choo Chiau Beng, Chairman & CEO, "The Group has lived up to the expectations behind its creation. Our success is due to the support of our customers as well as the combination of strong market fundamentals and the strategic imperatives that led to the integration of our offshore and marine companies.
"Through the creation of Keppel O&M, we have seen that Keppel's position as a leader in the offshore and marine industry has been reinforced. Our global footprint has increased and most importantly, it allows us to make the best use of our resources to deliver world-class products and solutions that are required by our customers."
In 2006, the Group secured a historic high level of new orders which totaled S$7.3 billion, due in part to its new proprietary products in jackups and semisubmersibles and success in penetrating new markets such as India and Russia.
Its ability to leverage Group resources and the wide network of yards to offer innovative solutions on a fast-track basis has also contributed to its success. To date, the Group has a net order book of S$10 billion worth of projects, with earnings visibility extending further into 2010.
Looking ahead, Mr Choo remarked, "The strong growth in the offshore and marine sectors is expected to remain robust over the next few years. There are increasing numbers of new entrants, while new oil and gas fields are being developed, particularly in harsher environments. National oil companies are expanding their roles. The challenges include environmental considerations, rapid development of new technologies, rising costs of infrastructure and services and a shortage of skilled manpower."
To meet the challenges of the changing landscape in the industry, Mr Choo said, "We remain committed to our customers by executing our projects on time and on budget. We are also going beyond designing and building structures to offer cutting-edge solutions in line with new market requirements. Ultimately, our main aim is to be the partner and provider of choice in our chosen business segments in order to grow beyond today."
Keppel O&M is a global leader in offshore rigs, shiprepair and conversion and specialized shipbuilding. Its "Near Market, Near Customer" strategy is bolstered by a global network of 20 yards in the Asia Pacific, Gulf of Mexico, Brazil, the Caspian Sea, Middle East and the North Sea regions. Integrating the experience and expertise of its yards worldwide, the Group aims to be the provider of choice and partner in solutions for the offshore and marine industry.
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