SINGAPORE: Singapore conglomerate Keppel Corp said on Thursday (Jan 28) its struggling offshore and marine (O&M) segment will exit the rig-building business as part of a previously flagged strategic review.
Keppel and its smaller rival Sembcorp Marine were among the world's biggest oil rig-builders, but low oil prices and an oversupply of rigs have hit the business hard.
The O&M business will focus on areas such as renewables and gas solutions, and will have a "significantly reduced headcount" as part of the restructuring, Keppel said.
"When we succeed in executing these plans, we will see a transformed and more competitive Keppel O&M, well-placed to support the global energy transition," said CEO Loh Chin Hua.
Keppel said it was also exploring inorganic options for the O&M business.
The company, whose businesses include property development and telecommunications, reported a net loss of S$506 million (US$380 million) for 2020, compared to a net profit of S$707 million a year earlier.
Its latest results included impairments of S$952 million mainly due to the offshore and marine business.