Keppel Corp net profit slips by 12% to $363m in 3Q

Dragged down by its weak O&M segment.

The best diversified O&M company in the city-state wasn’t spared from the huge waves engulfing the sector, as its drilling rig business was swallowed up by a slowdown in orders.

According to a statement by Keppel, despite its earnings taking a hit from the discouraging marine segment, it remains optimistic on the long-term outlook of its O&M business.

“While E&P investments have declined, they will have to increase eventually to keep up with global oil demand, which is set to rise by 1.4 million barrels per day in 2016. With rebalancing forces intensifying on both oil demand and supply sides, we believe oil prices will eventually recover and stabilise at a new equilibrium,” the statement said.

“While there was a fall in demand for drilling rigs, our projects such as conversions and specialised shipbuilding are bolstering Keppel Offshore & Marine's performance,” it added.