SINGAPORE, Oct 18 (Reuters) - Singapore's Keppel Corp Ltd
, the world's largest oil rig builder, reported
third-quarter net profit of S$346 million ($284.5 million), 15
percent lower than the S$406.1 million it made a year earlier,
mainly due to lower-margin projects.
The third-quarter figure was above the S$324 million average
forecast of five analysts polled by Reuters. Keppel made net
profit of S$520.9 million in the April-June quarter of this year
when it booked gains from property units it sold earlier via a
deferred payment plan.
In the third quarter, Keppel's offshore and marine segment
secured S$7.3 billion in new orders from Brazil, Kazakhstan and
Singapore, bringing its net order book to S$13.1 billion at the
end of September, with work extending to 2019.
Many analysts remain bullish about the company's outlook due
to high oil prices, the need for oil firms to replace old rigs,
and rising spending on exploration and production particularly
in Brazil, the Gulf of Mexico and West Africa.
However, Keppel warned that with surplus capacity in
shipbuilding, more yards are chasing offshore work, and that
aggressive competition continues to exert pressure on newbuild
prices and margins.
Keppel has been the global market leader in designing and
building offshore drilling rigs since 2000, with 50 percent
market share for jack-up rigs and 33 percent for semisubmersible
rigs, according to a Keppel spokeswoman.
Before its results were released, 21 of 24 analysts tracking
Keppel had 'strong buy' or 'buy' ratings on the firm, and three
had 'hold' calls, according to Thomson Reuters data.
Keppel competes with Sembcorp Marine Ltd in the
offshore marine market.
Keppel shares closed up 0.9 percent at S$11.39 on Thursday.
The stock has risen 22 percent so far this year, beating an
increase of almost 16 percent for Singapore's benchmark Straits
Times Index.
Posts
Clap Clap Clap!
ReplyDelete