Keppel Corp writes down Brazil projects; 2015 profit at 5-yr low


Singapore rig builder Keppel Corp Ltd took a S$230 million writedown in the fourth quarter on Sete Brasil-related orders, dragging its quarterly profit down by 44 percent and pushing its full-year profit to the lowest level since 2010.

Net profit fell to S$405 million ($281.6 million) in the three months to Dec. 31, on a revenue of S$2.5 billion.

Full-year net profit fell 19 percent to S$1.525 billion, in line with the mean forecast of S$1.5 billion, based on estimates by 20 analysts, according to Thomson Reuters data.

Keppel, one of the world’s largest offshore drilling rig producers, has been hit by the rout in oil prices, which have tumbled more than 70 percent in the last 18 months. Its businesses also include property development and infrastructure.

The company announced a final dividend of 22 Singapore cents per share, down from the 2014 final dividend of 36 Singapore cents per share.

The offshore and marine division recorded a net order book of S$9 billion, the lowest since 2010.

Its property unit’s revenue for the fourth quarter dropped due to lower contribution from Singapore and lack of sales at a residential project in Saudi Arabia, but was partially offset by higher revenue from China, Keppel said.

Source: Reuters



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