Keppel badly hit by O&M woes

Profits plunged 38.1% to $224m in 3Q.

Keppel Corp 3Q results show strain on business, particularly at its Offshore and Marine (O&M) and Infrastructure divisions.

Earnings took a 38.1% slide to $224.5m from last year, while revenue declined by 40.2% to $1.46b.

O&M division, which made up 35% of the firm's total revenue, reported 63% earnings drop to $516m.

“The landscape for offshore and marine remains very challenging,” said Keppel CEO Loh Chin Hua in a statement

Loh noted demand in the offshore market is expected to remain tepid despite the gradual recovery in oil prices while oversupply remains a key concern.

In a cost-cutting drive, the O&M division reduced its direct workforce by nearly 8,000 or around 26%

Keppel's O&M division clinched a total of $500 million in new orders, year-to-date.