SINGAPORE: Singapore conglomerate Keppel Corp said on Thursday its struggling offshore and marine segment will exit the rig-building business as part of a previously flagged strategic review.
Keppel and its smaller rival Sembcorp Marine were among the world's biggest oil rig-builders, but low oil prices and an oversupply of rigs have hit the business hard.The O&M business will focus on areas such as renewables and gas solutions, and will have a"significantly reduced headcount" as part of the restructuring, Keppel said.
"When we succeed in executing these plans, we will see a transformed and more competitive Keppel O&M, well-placed to support the global energy transition," said CEO Loh Chin Hua.The company, whose businesses include property development and telecommunications, reported a net loss of S$506 million for 2020, compared to a net profit of S$707 million a year earlier.Its latest results included impairments of S$952 million mainly due to the offshore and marine business.
Good decision. Now as the Biden and gang in power, the petroleum exploration will go through a very bad phase. The demand for oil rigs will be at its minimum.
Corruption trial being sweep under the carpet by govt?