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Keppel Corp offshore and marine unit scraps newbuild asset project, scores settlement deal

ONE of Keppel Corp's offshore and marine units mutually terminated a newbuild asset project with an undisclosed global oil and gas services company on Friday, the parent group announced.

Keppel FELS, a wholly owned subsidiary of Keppel Offshore & Marine, inked a settlement agreement with the customer over the contract for integration and commissioning work, Keppel Corp has disclosed.

The group said that Keppel FELS has been paid for the roughly 30 per cent share of work that had been completed, covering its costs incurred - with margins - on the project, which was worth S$165 million.

The impact on the order book is some S$47 million, The Business Times understands. The net order book for Keppel Corp's offshore and marine division, excluding certain rigs, was S$4.4 billion, as at Sept 30.

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The group said that the project termination will not have any material impact on its net tangible assets and earnings per share for the year to Dec 31, and is not expected to result in any write-down.

Keppel Corp closed up by S$0.06, or 0.97 per cent, at S$6.26, before the announcement.