Keppel, Sembcorp Reach Deal with Embattled Brazil Firm
Singapore firms Keppel Corp and Sembcorp Marine said on Monday they had reached settlements with indebted Brazilian firm Sete Brasil over long-standing contracts to build drillships and rigs.Sete, which leased oil rigs to Brazil's state oil firm Petroleo Brasileiro SA (Petrobras), filed for bankruptcy protection in 2016 after being engulfed in a massive corruption scandal.Keppel and Sembcorp Marine are among a host of firms caught up in the wide-ranging "Car Wash" investigation.
Shipbuilding: Keppel Sees Rig Recovery, Profits Up
Singaporean conglomerate Keppel Corp posted improved results for the fourth quarter, helped by narrower losses in its offshore and marine division, and said it was seeing signs of recovery in the rig industry.The company on Thursday reported a net profit of S$135 million ($99.2 million) for the quarter ended December, compared with a net loss of S$492 million a year earlier, when it accounted for a fine its rig-building unit agreed to pay to resolve bribery charges in Brazil.The latest profit was 6 percent higher than a profit of S$127 million it would have reported a year earlier…
Singapore's Offshore Industry Recovering
A big drag on Singapore's growth in recent years, the embattled offshore and marine industry, has broken a three-year losing streak. Yet industry executives aren't betting on a return to the glory days anytime soon.The industry, along with a top-class finance sector, has been a key pillar of Singapore's economic transformation into a first world economy since independence from British colonial rule in 1965 and a source of national pride. But a 2014 collapse in oil prices has resulted in thousands jobs lost…
Keppel Q2 Profit up 44 Percent
Singapore's Keppel Corp posted a 44 percent rise in its second-quarter profit, citing stronger earnings from its property and infrastructure divisions that offset losses in its other segments, including offshore and marine.Keppel, whose businesses range from rig-building to property development, posted a net profit of S$246 million ($179 million)for the quarter ended June, versus S$171 million a year-ago.Total revenue at the company, in which Singapore state investor Temasek is the biggest shareholder, was S$1.52 billion, slightly lower than the S$1.55 billion posted a year ago.Profi
Sembcorp Marine Outlook Subdued on Q1 Profit Slump
Singaporean rig builder Sembcorp Marine Ltd said on Wednesday first-quarter profit fell 86 percent, and signaled a subdued outlook for orders and business volumes.Sembcorp Marine said profit came in at S$5.3 million ($4 million) for the three-month period ended March, compared with S$37 million in the same period a year ago.The year-ago profit was boosted by an one-off gain from the disposal of Sembcorp Marine's stake in Cosco Shipyard Co.Overall business volume has remained significantly below peak levels…
Keppel Posts First Quarterly Loss in 14 Years
Singaporean conglomerate Keppel Corp swung to its first quarterly net loss in 14 years, after accounting for a huge fine its rig-building unit agreed to pay to resolve investigations into charges it bribed Brazilian officials. Keppel, last month, said its offshore rig-building business had agreed to pay more than $422 million to resolve the bribery probe brought against it by authorities in the United States, Brazil and Singapore. Investigations with respect to the individuals involved are ongoing.
Ex-Keppel Lawyer Cooperated in Brazil Bribery Probe
A former lawyer at Keppel Corp Ltd's oil rig building business secretly pleaded guilty and cooperated with U.S. authorities before the Singapore-based company agreed to pay $422 million to settle charges it bribed Brazilian officials, according to court documents. Jeffery Chow, a former senior member of Keppel Offshore & Marine Ltd's legal department, cut a deal to help prosecutors in their probe of Keppel and other former executives, according to the documents unsealed on Tuesday in federal court in Brooklyn. Chow, 59, pleaded guilty on Aug.
Keppel's Q1 Profit up 23 pct
Singapore's Keppel Corp on Thursday reported a 23 percent rise in its first-quarter profit as improved earnings from the infrastructure and investments divisions helped offset weakness in its offshore and marine business. Keppel reported a net profit of S$260 million ($186.17 million) for the quarter ended March, versus S$211 million a year ago. Total revenue fell 28.4 percent to S$1.25 billion. This comes after Keppel posted its smallest annual profit in a decade in 2016.
Singapore’s Survivability
Singapore’s shipyards are looking to recent investments in capacity, design and newly acquired technology to combat order declines after a decades-long offshore buildup. Sembcorp and peer Keppel are making the most of partnerships in FLNG and showing signs they’ll be okay through the downturn, helped by their gas-hungry Australasian backyard and renewed ties with old charterer parties and suppliers. With drilling contractors unable to pay for the offshore rigs they’ve ordered, Singapore’s heavyweight yards have had to defer deliveries and become defacto rig owners.
Sembcorp Marine Swings to Q4 Profit
Annual revenue lowest since 2006. Singapore's Sembcorp Marine Ltd (SembMarine) swung to profit in the fourth quarter of 2016 after provisions pulled the rig builder into a loss the year earlier, but a downturn in oil prices pushed annual revenue to its lowest in a decade. SembMarine and compatriot Keppel Corp Ltd have been suffering from an oversupply of offshore oil drilling rigs, with customers delaying contracts and refraining from placing orders while oil hovers at about half its 2014 peak.
Keppel Shuts Down Three Yards in Singapore
Keppel Corp, the world's biggest oil rig builder, is still hard hit by the downturn in the oil industry and will now shut down three yards in its homeland. Singapore-based offshore company Keppel reduced its direct work force by about one third. The workforce has been reduced by 2,620 employees in the fourth quarter a cut of 11.8%. For 2016 as a whole Keppel reduced its direct workforce by 10,600, some 3,800, and about 6,800 overseas, or 35% of its total direct workforce. The number of sub-contractors in Singapore has also been reduced by 3,300.
Sembcorp Marine Swings to Loss in Q3
Singapore's Sembcorp Marine Ltd swung to a loss in the third quarter and the rig builder's revenue was hurt by customers deferring rig deliveries amid a protracted downturn in the oil and natural gas market. The company posted a net loss of S$21.8 million ($15.7 million) for the three months ended Sept. 30, compared with a net profit of S$32.1 million a year ago. It said the bottomline was hurt by higher financing costs, share of losses from associates and foreign exchange impact.
Keppel Posts Fifth Straight Quarterly Profit Drop
Q2 net profit S$205 mln vs S$397 mln year ago; offshore and marine revenue down 54 pct. Second-quarter profits at Singaporean rigbuilder Keppel Corp fell 48 percent from a year ago, fifth straight decline in quarterly profit, weighed down by lower revenues at its offshore and marine segment. The conglomerate, whose businesses include property development and infrastructure, and its smaller rival Sembcorp Marine have been hit by the 60 percent drop in oil prices since mid-2014. Still, oil prices have recovered more than 70 percent from the lows touched in January.
Sembcorp Profit Halved as Clients Defer Projects
Revenue falls 30 pct; order book at S$9.7 billion. Singapore rig-builder Sembcorp Marine's quarterly profit halved as customers deferred projects, and it faces prolonged uncertainty on contracts from its biggest client, Sete Brasil, whose shareholders have approved its bankruptcy. Sembcorp Marine posted a profit of S$55 million ($41 million) for the three months ended March 31, compared with a profit of S$106 million a year ago. Sembcorp Marine and its cross-town rival Keppel Corp have been hit by slumping orders as oil prices dropped nearly 60 percent since mid-2014.
Keppel Q1 Profit hit by Offshore, Marine Segment
Singapore conglomerate Keppel Corp posted a 41 percent fall in quarterly profit, its fourth straight decline, as offshore and marine segment revenue slumped because of the deferment of some projects and suspension of contracts related to Sete Brasil. Keppel, one of the world's largest builders of offshore drilling rigs, has been hit by the 60 percent drop in oil prices since mid-2014. Its businesses include property development and infrastructure. Keppel posted net profit of S$211 million ($156 million) for the three months to March 31. Reporting By Aradhana Aravindan
Sembcorp Marine posts first Quarterly Loss.
Posts S$535 mln loss vs year ago profit; net order book backlog at S$10.4 billion. Singaporean rig builder Sembcorp Marine Ltd posted its first quarterly loss, hit by writedowns and project delays by its key customers, underscoring the strain caused by plunging crude oil prices. The company also warned that it expects the downtrend to last longer than previous cycles as Singapore's $10 billion rig building industry faces cancellations and a dearth of new orders. For the fourth quarter…
Oil Bleeds Jobs to Renewables Sector
Global oil sector has cut 200,000 jobs in downturn. Renewables are powering a rare bright spot in the energy industry, with record job hiring in solar, wind and hydro partly offsetting the biggest round of job losses in the oil and gas sector in almost two decades. The boom in new green jobs is being led by Asia where governments in countries such as China and India are embarking on massive programmes to use more renewable energy. The fresh opportunities come as the oil sector is suffering its worst downturn since the late 1990s…
Singapore's Keppel Corp Q3 Drops 12 pct
Singaporean conglomerate Keppel Corporation Ltd said third-quarter net profit fell 12 percent from a year earlier, weighed down by the weak performance in its offshore and marine business. Keppel, one of the world's top offshore drilling rig builders, reported on Thursday a net profit of S$363 million ($261 million) for the three months ended Sept 30 on revenue of S$2.4 billion, down 23 percent from a year earlier. (Reporting by Rujun Shen)
China Inc Joins the Big League in Oil and Gas Services
Global oil companies are increasingly turning to China for services and equipment, attracted by lower costs and a newly acquired expertise that is challenging more established rivals. State-run and privately controlled Chinese rig makers, oil and gas services and engineering firms are showing up in the supply chain everywhere from the Middle East, the North Sea and North America to frontier areas like Mozambique. Chinese yards, having come from nowhere in less than a decade…
Offshore firm's IPO may give Singapore market shot in the arm
This would be only the second mainboard IPO in Singapore this year. Singapore's IPO market lacklustre in recent years, but oil and gas related offerings find favour in Singapore. A major operator of maritime support vessels controlled by Malaysia's richest man is seeking up to $380 million in a Singapore IPO - a boost to the city-state's stock market which has seen just one other mainboard listing this year. The deal from PACC Offshore Services Holdings (POSH), the largest Asia-based international operator of support vessels for offshore oilfields…
