Keppel boss says no rigs ordered ‘across the board’ in the first quarter

Keppel boss says no rigs ordered ‘across the board’ in the first quarter

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.

Sam Chambers

Starting out with the Informa Group in 2000 in Hong Kong, Sam Chambers became editor of Maritime Asia magazine as well as East Asia Editor for the world’s oldest newspaper, Lloyd’s List. In 2005 he pursued a freelance career and wrote for a variety of titles including taking on the role of Asia Editor at Seatrade magazine and China correspondent for Supply Chain Asia. His work has also appeared in The Economist, The New York Times, The Sunday Times and The International Herald Tribune.

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