Keppel says goodbye to rig business, pivots to clean energy

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KEPPEL Corp, the world's largest offshore rig builder, unveiled a radical reboot to exit the depressed rig business and pivot to clean energy as the sting of the oil crash led its offshore and marine unit to post record losses of S$1.19 billion in 2020. Read more at The Business Times.

Keppel O&M's headcount of 10,500 will be"significantly reduced" while it also progressively exits low value-adding repairs and other activities with low bottom line contribution, and focus on higher value-adding work.

The third one is the Op Co, a key entity that will hold the rest of Keppel O&M and serve as an"integrator of offshore energy and infrastructure assets" and is expected to be self-sustaining, financially independent and profitable over time. Indeed, it has been a difficult time for Singapore's rig-building heavyweights after oil prices plunged to historic lows as the Covid-19 pandemic decimated energy demand and the oil cartel turned on the taps last year.Last year, Sembcorp Marine, another giant rig builder, was demerged from its parent Sembcorp Industries and recapitalised to survive the onslaught of the oil slump.

Keppel's second-half report card that was released on Thursday indicated that, going forward, it has likely put the worst year behind it.

 

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