Keppel Moves More into LNG, Renewables
The offshore and marine (O&M) arm of Singapore-based Keppel secured close to 60% of its S$1.9bn in new orders in the first nine months of this year at LNG and renewables projects, it said in its latest earnings report on October 17.
The business segment posted a profit of S$8mn ($6.6mn) in the three months ending September 30, up a third compared with a year earlier, while revenues soared 52% to S$632mn. Profits for the first nine months came to S$18mn, reversing a loss of S$38mn the year before.
Keppel is better known for its rig-building capability, but has so far scored only one contract for rig construction this year. Excess global supply of rigs following the oil market downturn prompted the company to diversify its revenue sources offshore. These efforts are now starting to pay off.
“Over the past four years, gas solutions and offshore renewables have contributed S$2.4bn in new orders for Keppel O&M,” the company said.
Its orders this year included a semi-submersible rig commissioned by UK contractor Awilco, two FPSO conversions, a floating LNG conversion, a dual-fuel dredger, onshore and offshore power converter stations and two offshore wind farms.
Keppel’s O&M segment now has a net order book of S$5.1bn. The business will “continue exploring new markets and opportunities, investing in R&D and building new capabilities,” the company said. “The division is also actively capturing opportunities in production assets, specialised vessels, gas solutions, offshore renewables and floating infrastructure, as well as exploring ways to re-purpose its technology in the offshore industry for other uses.”
O&M is one of four main business segments of Keppel, the others being property, infrastructure and investments.