Saturday, January 24, 2009

Keppel Offshore & Marine braces for tough market

Singapore: Despite ending 2008 on a strong note with an 18% increase in revenues to $8.5bn Keppel Offshore & Marine has stated that it expects to see fewer rig and ship repair contracts during the coming months.

The subsidiary of the Keppel Group, accounted for 72% of group revenue of $11.8bn, having completed and delivered three semisubmersibles and 13 jackups to its customers. ‘The global economic slowdown and financial crisis as well as the drop in oil prices have affected the oil and gas industry,’ the company said in its annual report. ‘This is expected to result in fewer rig contracts. Shiprepair is also expected to be affected by slumping freight rates and more vessels being laid up. ‘However, the demand for FPSO conversions remains strong. The outstanding order book of $10.8bn with deliveries into 2012 will keep Keppel Offshore & Marine’s yards busy. Offshore & Marine Division will continue to be the largest contributor to the profit of the Group. The Division will continue to focus on cutting edge technologies and long-term relationships with its customers,’ it concluded.

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