Kepcorp
Dow Jones Newswires
January 24, 2013 04:20 ET (09:20 GMT)
SINGAPORE--Keppel Corp. (BN4.SG) said Thursday that its fourth-quarter net profit fell 22% from a year earlier mainly due to lower contribution from its offshore and marine division, where margins were squeezed by competition from South Korean and Chinese yards.
The conglomerate, 21% owned by Singapore state investment firm Temasek Holdings Pte. Ltd., posted a net profit of 305 million Singapore dollars (US$249 million), compared with S$389 million a year earlier.
Revenue rose 7% to S$3.0 billion from S$2.80 billion, the company said in a statement to the Singapore Exchange.
The offshore and marine unit contributed S$212 million in net profit in the fourth quarter, a fall of 15% from a year earlier, while the infrastructure division reported a net loss of S$72 million.
The world's biggest rig builder by volumes received S$10 billion worth of new orders in 2012. As of Dec. 31, Keppel had a net order book of S$12.8 billion that would keep its shipyards busy until 2019, according to the statement.
"Stable Brent crude prices of above US$100 a barrel continue to support industry capex for sizeable discoveries in Gulf of Mexico, the North Sea, Brazil and Africa. Scaling new frontiers requires highly advanced solutions; therefore, we expect global exploration and production spending to rise further," Chief Executive Choo Chiau Beng said in the statement.
However, "keen rivalry from Chinese and Korean yards have suppressed prices and squeezed margins on newbuilds," he added.
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Dow Jones Newswires
January 24, 2013 04:20 ET (09:20 GMT)
SINGAPORE--Keppel Corp. (BN4.SG) said Thursday that its fourth-quarter net profit fell 22% from a year earlier mainly due to lower contribution from its offshore and marine division, where margins were squeezed by competition from South Korean and Chinese yards.
The conglomerate, 21% owned by Singapore state investment firm Temasek Holdings Pte. Ltd., posted a net profit of 305 million Singapore dollars (US$249 million), compared with S$389 million a year earlier.
Revenue rose 7% to S$3.0 billion from S$2.80 billion, the company said in a statement to the Singapore Exchange.
The offshore and marine unit contributed S$212 million in net profit in the fourth quarter, a fall of 15% from a year earlier, while the infrastructure division reported a net loss of S$72 million.
The world's biggest rig builder by volumes received S$10 billion worth of new orders in 2012. As of Dec. 31, Keppel had a net order book of S$12.8 billion that would keep its shipyards busy until 2019, according to the statement.
"Stable Brent crude prices of above US$100 a barrel continue to support industry capex for sizeable discoveries in Gulf of Mexico, the North Sea, Brazil and Africa. Scaling new frontiers requires highly advanced solutions; therefore, we expect global exploration and production spending to rise further," Chief Executive Choo Chiau Beng said in the statement.
However, "keen rivalry from Chinese and Korean yards have suppressed prices and squeezed margins on newbuilds," he added.
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