Keppel bags S$300 million worth of marine contracts

The contracts include the designing and construction of an ice-class bunker vessel, refurbishment of a Floating Production Storage and Offloading vessel, and scrubber retrofit projects.

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Source: Bloomberg

Keppel Offshore and Marine (KOM) has through its subsidiaries, clinched contracts worth a combined value of about S$300 million, the firm said on Wednesday. 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.

The new contracts are bagged through KOM’s wholly-owned subsidiaries Keppel Singmarine and Keppel Shipyard.

Keppel Singmarine has clinched a contract with Shturman Koshelev for the design and construction of an ice-class LNG bunker vessel slated to complete in the fourth quarter of 2020. Upon completion, the vessel will be chartered to Gazpromneft Marine Bunker for operations in the Baltic Sea.

Keppel Shipyard has secured a total of 65 contracts from a variety of customers for exhaust gas scrubber retrofit projects involving project management, integration design engineering, installation and retrofitting, as well as testing and commissioning works. 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.

Commenting on the deals, 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 International Maritime Organisation implements the 0.5% global sulphur cap on marine fuel from January 2020.

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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