Keppel's FY15 profit crashes 19% to $1.52b

On back of Sete Brasil provisions worth $230m.

Keppel Corporation saw FY15 profits drop to $1.52b, reflecting a 19% YoY crash from FY14’s $1.9b. Meanwhile, its Q4 net profit took a 44% YoY nosedive to $405m, from 4Q14’s $726m.

According to a report by OCBC, Keppel’s earnings was battered by $230m worth of provisions for Sete Brasil projects, although bolstered by $129m of revaluation gains from investment properties in the property segment. 

OCBC asserted that Keppel management was reticent in explaining its base case scenario and assumptions at arriving the $230m Sete rigs provision, saying only that it was arrived at after evaluating the “construction progress, payment status, and amounts due to vendors, amongst other areas.”

Keppel’s property also performed well in the quarter, clocking in a net profit of $368m in 4Q15, but the offshore and marine division saw a net loss $61m in the quarter.