Keppel bags S$300 million worth of marine contracts says Angela Teng a Financial writer for IG.
What is the contract for?
Keppel Offshore and Marine (KOM), through its wholly-owned subsidiaries Keppel Singmarine and Keppel Shipyard, clinched contracts worth a combined value of about S$300 million.
The contracts include the designing and construction of an ice-class LNG bunker vessel, refurbishment of a Floating Production Storage and Offloading (FPSO) vessel, and scrubber retrofit projects.
Design and Construction contract
Keppel Singmarine has clinched a contract with Shturman Koshelev for the design and construction of an ice-class LNG bunker vessel. It is slated to be complete in the fourth quarter of 2020.
Upon completion, the vessel will be chartered to Gazpromneft Marine Bunker for operations in the Baltic Sea.
Scrubber retrofit
Keppel Shipyard has secured a total of 65 contracts from a variety of customers for exhaust gas scrubber retrofit projects. This involves project management, integration design engineering, installation and retrofitting. Testing and commissioning works are also included.
The subsidiary also clinched a contract with an unnamed leading global operator of floating production vessels for the fabrication of a new aft hull for a FPSO, which is an offshore production floating facility.
Proof for its expertise
Mr Chris Ong, CEO of KOM said the contracts testify for the firm’s expertise in the building, upgrading and conversion of a wide range of vessels.
He added that the firm stands ready with a suite of advanced and cost-effective solutions such as scrubber retrofits and LNG-fuelled vessels, as the IMO implements the 0.5% global sulphur cap on marine fuel from January 2020.
Material impact
KOM said the contracts are not expected to have a material impact on the net tangible assets or earnings per share of its parent company Keppel Corporation for the current financial year.
Keppel Corporation’s shares dipped S$0.08 or 1.37% to S$5.78 minutes into trading on Wednesday.
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Source: IG
