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Keppel Corp Q2 net profit up 17%

Singapore conglomerate Keppel Corp has posted a 17 per cent rise in net profit for the three months ended June.

SINGAPORE: Singapore conglomerate Keppel Corp has posted a 17 per cent rise in net profit for the three months ended June, helped by stronger contributions from its offshore and marine arm, which is the world's biggest builder of oil rigs. Keppel earned S$406 million during the quarter, up from S$347 million a year ago.

For the half year ended June, Keppel's net profit rose 6 per cent to S$745 million. Looking ahead, the Singapore firm said its offshore and marine division remains positive about job prospects with sustained global demand for oil and gas. It has also identified opportunities in the growing Floating Liquefied Natural Gas market.

The division secured S$3.2 billion of new orders in the first half of the year. Its net order book at end June stood at S$14.1 billion with a spread of projects spanning newbuild jackups and semis, vessel conversions, plus other construction and repair work extending into 2019. 

“Higher operating margins from the offshore and marine and property divisions, and a write-back of impairment of associated companies, the group achieved 10 per cent improvement in operating profit,” said Keppel Corp’s chief financial officer, Chan Hon Chew. 

Keppel says its revenue for the aforementioned divisions improved due to a higher volume of work. Its offshore and marine divisions remain the main contributor to group revenue at 65 per cent for the second quarter of 2014.

Keppel has also been casting an eye towards the exploration of seabeds. "This is still a very long term project,” said Keppel’s CEO Loh Chin Hua. “There are still a lot of things that need to be worked out. But we believe this is a very interesting opportunity for the future.”

 

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