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Keppel Corp Q4 profit falls 44% as rig orders hit by oil rout, Brazil

Keppel Corporation on Tuesday said its private subsidiaries, Keppel Land and Kepventure, have agreed to divest a subsidiary, Fernland Investment, to Prime Value Asia for up to about US$10.86 million.

[SINGAPORE] Singapore's Keppel Corporation Ltd said on Thursday its fourth-quarter net profit fell 44 per cent and its 2015 profit dropped to a five-year low as plunging oil prices hit demand for offshore rigs.

Keppel, whose businesses also include property development and infrastructure, said in a statement that fourth-quarter profit fell to S$404.8 million from S$725.9 million. Still, that beat the S$392 million average profit forecast in a Bloomberg survey of five analysts.

The full-year net profit stood at 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.

It was the lowest annual profit since the S$1.51 billion the company made in 2010.

Keppel and rival Sembcorp Marine Ltd face the risk of clients asking for further delivery delays and cancellations, and of new orders drying up, as oil prices have fallen below US$30 a barrel for the first time in more than a decade.

A final dividend of S$0.22 per share will be proposed. This brings the total cash dividend for 2015 to S$0.34 per share.