Analysts upbeat on Keppel's strong margins

ANALYSTS are bullish about Keppel Corporation and its offshore & marine segment, even though its rig building business turned in lower revenue and net profit for the latest quarter.

Last week, the shipbuilder reported a 32.1 per cent increase in Q3 net profit to $457.6 million, but excluding revaluation, major impairment and divestments, its net profit was $403 million, 20 per cent higher than the same period last year.

The offshore rig building business accounted for $215 million, down 11 per cent from $241 million a year earlier as a result of a lower volume of work. This meant that while the offshore & marine segment contributed almost three-quarters of the group's net profit during the same period last year, at 72 per cent, it only managed to contribute about half of this total this time round, at 53 per cent.