http://www.businesstimes.com.sg/com...3-gains-down-38-plans-more-layoffs-at-om-unit
SINGAPORE's giant conglomerate Keppel Corp posted a 38 per cent drop in third-quarter net profit to S$225 million from a year ago, as cheap oil and overcapacity hurt its offshore and marine (O&M) business, forcing another round of layoffs at the unit. Last year, the group had already shed 14,000 jobs from its global headcount and Singapore sub-contract workforce.
Its chief executive Loh Chin Hua said these "painful measures" will have to continue even as the world's biggest oil rig builder looks to other divisions to buttress its future earnings; under a "multi-business" plan, it is leaning on property - now the group's largest earnings contributor - and the infrastructure division, as well as new growth spots of data centre and asset management businesses.
As a sign of "solidarity", the senior management across all Keppel's business units have volunteered for pay cuts; Keppel Corp directors will propose lower directors' fees for 2016.
onitoring the political developments in Brazil and the ongoing Lava Jato (Operation car wash) investigations, which are "quite wide ranging".
Early this month, Keppel Corp said internal investigations showed up certain "suspicious" transactions associated with a former Brazil agent Zwi Skornicki. Keppel is investigating allegations that illegal payments were made by him on contracts entered into by Keppel entities with their long-standing customer, Brazil national oil company Petrobras, and rig charter firm Sete Brasil.
The group has made no additional provisions since the fourth quarter of FY2015, when it set aside S$230 million for the rigs it had been building for Sete Brasil; construction work has stopped since the end of 2015. Mr Loh said: "While we wait for more clarity on Sete's plans, the provision remains appropriate and adequate."
SINGAPORE's giant conglomerate Keppel Corp posted a 38 per cent drop in third-quarter net profit to S$225 million from a year ago, as cheap oil and overcapacity hurt its offshore and marine (O&M) business, forcing another round of layoffs at the unit. Last year, the group had already shed 14,000 jobs from its global headcount and Singapore sub-contract workforce.
Its chief executive Loh Chin Hua said these "painful measures" will have to continue even as the world's biggest oil rig builder looks to other divisions to buttress its future earnings; under a "multi-business" plan, it is leaning on property - now the group's largest earnings contributor - and the infrastructure division, as well as new growth spots of data centre and asset management businesses.
As a sign of "solidarity", the senior management across all Keppel's business units have volunteered for pay cuts; Keppel Corp directors will propose lower directors' fees for 2016.
onitoring the political developments in Brazil and the ongoing Lava Jato (Operation car wash) investigations, which are "quite wide ranging".
Early this month, Keppel Corp said internal investigations showed up certain "suspicious" transactions associated with a former Brazil agent Zwi Skornicki. Keppel is investigating allegations that illegal payments were made by him on contracts entered into by Keppel entities with their long-standing customer, Brazil national oil company Petrobras, and rig charter firm Sete Brasil.
The group has made no additional provisions since the fourth quarter of FY2015, when it set aside S$230 million for the rigs it had been building for Sete Brasil; construction work has stopped since the end of 2015. Mr Loh said: "While we wait for more clarity on Sete's plans, the provision remains appropriate and adequate."
