Keppel Corp's Q3 profit slumps 38%

SINGAPORE conglomerate Keppel Corporation's third-quarter net profit fell 38.1 per cent to S$225 million from S$363 million a year ago.

Revenue dropped 40.2 per cent to S$1.5 billion in the three months to Sept 30, 2016, from S$2.4 billion led by sharp fall in the offshore and marine division on the back of less jobs, deferment of projects and suspension of the Sete Brasil contracts.

Earnings per share for the period under review came in at 12.4 Singapore cents versus 20 Singapore cents in Q3 FY2015.

No dividend was recommended.

Painful measures which have kept Keppel Offshore & Marine (O&M) profitable despite the sharp drop in revenues and operating profits will have to continue, said Keppel Corp's chief executive Loh Chin Hua in an announcement.

The group's O&M arm reduced its direct workforce by about 3,080 over the quarter, bringing cuts over the first nine months of the year to nearly 8,000 or by 26 per cent.

Senior management across all Keppel's business units have volunteered to take a salary cut, said Mr Loh, adding that the board has also proposed lower directors' fees for 2016 at next year's annual general meeting.

Keppel Corp shares added two Singapore cents or 0.4 per cent to finish at S$5.44 on Thursday.