Keppel Posts Weaker First Quarter Profits

by Ship & Bunker News Team
Wednesday April 29, 2020

Singaporean marine engineering firm Keppel has seen profits fall in its first quarter results.

Compared to the same period a year ago, the firm posted a S$160 million ($111 million) profit, down by 21%.

The weaker profit was "mainly due to an absence of gain the divestment of a 70% interest in Dong Nai Waterfront City, Vietnam a year ago", the company said.

But the company is well resourced despite the negative impact of the coronavirus pandemic on the global economy.

"While Keppel is not directly involved in the sectors most severely affected by COVID-19, our businesses have inevitably been affected by the fall in global economic activity, lockdowns in various countries, disruptions to the workforce and supply chains, as well as the sharp drop in oil prices," Keppel chief executive Loh Chin Hua said.

"All our key business units remain profitable and Keppel continues to have a strong balance sheet and the necessary credit lines to finance our operations," he added.

In its offshore and marine section, the company is making progress towards a more diverse portolio with "renewables and gas-related solutions making up over 70% of the division's net orderbook of S$4 billion", the company said.