Keppel to recognise material impairments in Q2, mainly from O&M business

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KEPPEL Corporation warned on Friday that it will recognise material impairments in its financial results for the second quarter ended June 30, 2020, pertaining mainly to its offshore and marine (O&M) business. Read more at The Business Times.

KEPPEL Corporation warned on Friday that it will recognise material impairments in its financial results for the second quarter ended June 30, 2020, pertaining mainly to its offshore and marine business.

The conglomerate's financial results for Q2 and the half year ended on the same date will be"significantly and adversely impacted", according to its profit guidance. Keppel Corp had carried out a review on the assumptions used to assess the carrying values of certain assets of the group, including the recoverability of contract assets, receivable balances and stocks under work-in-progress in relation to the O&M business, as well as investments in associated companies.

Amid the highly volatile environment and low oil prices where oil majors are curtailing exploration and production spending, day rates and utilisation rates for the O&M industry generally, and specifically the group's O&M business, have been"adversely impacted".

 

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