Keppel’s net profit plummets by 48% to $205.8m

On back of the its anemic O&M business.

The strong waves of the offshore and marine segment continue to batter Keppel as its earnings took a 37% hit and is now down to $1.6b.

According to a report by OCBC, the firm’s earnings were also hit by the absence of one-time gains from the infrastructure division a year ago.

OCBC adds that the outlook for the rig markets remain weak, but the firm is still receiving enquiries for production platforms and FSRUs.

“Further newbuild deferments In the offshore side, KEP has received requests to defer the delivery of three jackups for Grupo R and one jackup for Parden Holdings to next year. The contracts remain valid and KEP will be compensated for the delays,” the report noted.

Meanwhile, excluding the Sete Brasil projects amounting to $4b, the group’s net order book currently stands at about S$4.3b.

“The group has declared an interim dividend of S$0.08/share for 1H16, compared to S$0.12/share in 1H15,” the report added.