Singapore’s Keppel Corporation to focus on renewables
Keppel Corporation of Singapore has announced that Keppel Offshore & Marine, which is up for sale, will undergo a significant restructuring that will see it leave the business of offshore rig construction.
Keppel Offshore & Marine will be greatly reduced by the comprehensive restructuring and the company will no longer pursue any new projects requiring large upfront capex or without milestone payments.
Existing ventures will be completed, with the company currently keeping completed and uncompleted rig assets valued around S$2.9 billion ($2.18 billion).
“The share of renewables and new energy solutions in the global energy mix has been growing rapidly, driven by environmental concerns as well as technological advancements and the declining cost of renewables. Natural gas, as a transitional fuel, is also projected to overtake oil as the world’s largest energy source in the years to come," said Loh Chin Hua, CEO of Keppel Corporation and Chairman of Keppel Offshore & Marine.
Keppel also says that the company will gradually exit low-value-adding repairs and other low-bottom-line contribution operations to concentrate on higher value-adding jobs.
Maritime Business World