WE refer to "Are dividends good?" (BT, March 27) which made reference to Keppel Corporation.

Keppel Corporation is a multi-business company focused on providing solutions for the megatrend of sustainable urbanisation. Our dividends are paid out from profits contributed by all businesses in the Group, comprising Offshore & Marine, Property, Infrastructure and Investments. We would also like to clarify that Keppel's Offshore & Marine Division has not had any rig contract cancellations to date.

In FY 2016, we registered a free cash flow of S$576 million, a significant improvement from the cash outflow of S$694 million in FY 2015, due in part to the slowdown in working capital increases, and lower operational capital expenditure by the Offshore & Marine Division.