Singapore: The dramatic fall in oil prices has seen no oil rigs ordered “across the board” in the first quarter, Loh Chin Hua, ceo of Keppel Corporation said yesterday while detailing the company’s first quarter results.
“Undoubtedly, the present low oil prices, if sustained, will negatively impact our offshore and marine business,” Loh warned. He said Keppel would “tide through” the downturn by managing costs.
Net profit in the first quarter was up 6% to S$360m over the same period in 2014.
Global exploration and production (E&P) capex is anticipated to drop by about 10-15% this year, Loh said.
“As it is, the offshore industry has been sliding deeper into the doldrums. Across the board, not a single drilling rig order has been placed since the start of this year, and rig inquiries have also not been converted into any new contracts,” the Keppel boss warned.
In the first quarter of 2015, Keppel Offshore & Marine clinched new orders amounting to about S$500m, including a newbuild multipurpose vessel and fabrication work for FPSO-related equipment.
