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Keppel Corp., the world’s largest oil-rig maker, said profit in the third quarter rose 8.4% on higher earnings from offshore structures.
Net income climbed to $346.3 million from $319.6 million a year earlier, the company said in a Singapore stock exchange statement today. That beat the $289.3 million average of three analyst estimates compiled by Bloomberg. Sales dropped 19% to $2.45 billion.
Net income climbed to $346.3 million from $319.6 million a year earlier, the company said in a Singapore stock exchange statement today. That beat the $289.3 million average of three analyst estimates compiled by Bloomberg. Sales dropped 19% to $2.45 billion.
Demand for offshore structures and rigs may increase after the U.S. last week lifted a ban on deep-water drilling imposed following BP Plc’s oil spill in the Gulf of Mexico in April. Sembcorp Marine, the world’s second-largest oil-rig maker, earlier this month won what may be its biggest contract since the credit crisis in 2008.
“Orders for newbuild rigs are returning and the level of enquiries has also picked up,” Keppel Chief Executive Officer Choo Chiau Beng said in the statement today. “The long-term outlook for offshore drilling will stay positive.”
Keppel gained 0.6% to close at $9.71 in Singapore trading before the earnings announcement. The stock has climbed 21% this year, compared with a 9.2% advance by the 30-member Straits Times Index.
ORDERBOOK
The company has won $2 billion of orders this year, according to the statement. That brought its total orderbook to $4.1 billion with deliveries stretching into 2013.
Profit at Keppel’s offshore unit advanced 15% to $247 million while sales fell 31% to $1.46 billion. Operating profit gained 2% to $277 million, widening the margin to 19% from 13% a year earlier.
The company’s property unit Keppel Land said yesterday third-quarter net income dropped 11% to $70.1 million as revenue slumped 35% to $149.2 million.
Keppel Corp. plans to invest US$50 million ($64.9 million) in acquiring and upgrading a 7.6-hectare shipyard in Brazil to take advantage of growing demand for offshore structures. The company is also expanding its presence in the Caspian Sea and the Middle East.
Sembcorp Marine said on Oct. 5 it won an order worth US$364 million to build two jack-up rigs from a unit of Atwood Oceanics Inc. of the U.S. The contract includes options to build three more valued at up to US$200 million each, according to the Singapore company.
