EPC projects in UK, Qatar challenging: Keppel CEO

KEPPEL Corporation's new chief executive, Loh Chin Hua, says the group is "working hard under challenging conditions" to deliver its engineering, procurement and construction (EPC) infrastructure projects with minimal losses.

He said in Keppel's annual report released yesterday: "Conditions on the ground have been very difficult. We continued to face challenges on the EPC contracts in Qatar and the UK, where cost overruns were due mainly to the projects taking longer than expected to complete."

Adding that he was "deeply disappointed" at having to make additional provisions, Mr Loh, who has been at Keppel's helm only since the start of this year, said: "The performance of the Doha North and Greater Manchester EPC projects was not in keeping with the group's enviable record for on-time, on-bud-get project execution. Lessons have been learnt. We will continue to build, own and operate infrastructure projects in areas where we have stronger technical knowledge and deeper understanding of the markets and key value chains."