January 26, 2017 / 9:36 AM / a year ago

BRIEF-Keppel Corp says Q4 revenue S$1.94 bln

Jan 26 (Reuters) - Keppel Corporation Ltd

* proposed final dividend of 12.0 cents per share; total dividend of 20.0 cents per share for fy 2016

* 4q 2016 net profit of s$143 million, after additional provisions for impairment of s$313 million, was down 65% from s$405 million a year ago.

* q4 revenue s$ 1.94 billion versus s$ 2.48 billion a year ago

* in 4q 2016, keppel o&m reduced its direct workforce by 2,620 or about 11.8% from previous quarter.

* “continues to cooperate with relevant authorities towards resolving issues in relation to contracts with petrobras and Sete Brasil”

* for whole of 2016, Keppel O&M reduced its direct workforce by about 10,600 or 35%, with about 3,800 in singapore and 6,800 overseas

* “we are also cutting our yard capacity and have mothballed two overseas yards for Offshore and Marine”

* received requests to defer delivery of jackup for falcon energy to q2 of this year

* received requests to defer delivery of jackup for falcon energy to q2 of this year, and that for bot lease co to january 2019

* for Falcon rig, we have received 20% downpayment, and for bot rig, 60% of milestone payments.

* “while spending by oil majors is expected to increase, we do not envisage a quick recovery for offshore business”

* “we are thus prepared for challenging conditions in offshore business to remain for some time”

* “expect to deliver some 20 newbuild and conversion projects including flng vessel conversion, golar hilli”

* “staff costs decreased in current year due mainly to lower manpower costs in offshore & marine division”

* “restructuring was completed in july and keppel capital has since obtained approval from mas to centralise certain regulated activities”

* faced with global sector downturn, offshore and marine division is rightsizing its operations for what is expected to be an extended slowdown

* revenue from offshore & marine division declined because of lower volume of work, deferment of some projects and suspension of sete brasil contracts

* “in singapore, we are in process of closing three yards.”

* “beyond dealing with immediate challenges, Keppel O&M is also positioning itself for upturn”

* “we remain confident of long-term fundamentals of oil and gas industry” Source text for Eikon: Further company coverage:

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