Keppel Offshore & Marine's profit sank 56% to $331m
Orderbook drawdown is also slower.
According to DBS, stripping out impairment charges, fair value and divestment gains, core net profit was S$331m (-56% y-o-y), making up 21% of consensus’ full year estimates.
O&M orderbook drawdown appears slower than expected probably due to timing of recognition of projects.
Here's more from DBS:
However, we are cheered by the O&M operating margins, which expanded for a second consecutive quarter to 14.1%, from the trough of 12.9% in 3Q12.
We believe margins could revert to 15% by FY14 on productivity gains and a pick up in contribution from higher-margin conversion projects.