CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please ensure that you fully understand the risks involved. CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please ensure that you fully understand the risks involved.

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.

IG Analyst

Publication date : 2018-12-26T01:29:01+0000

Shipping

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.

IGA, may distribute information/research produced by its respective foreign marketing partners within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.

This information/research prepared by IGA or IG Group is intended for general circulation. It does not take into account the specific investment objectives, financial situation or particular needs of any particular person. You should take into account your specific investment objectives, financial situation or particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. In addition to the disclaimer above, the information does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any views and opinions expressed may be changed without an update.

See important Research Disclaimer.

Find articles by writer

Disclaimer:

All forms of investments carry risks and trading CFDs may not be suitable for everyone. CFDs are leveraged instruments and can result in losses that exceed deposits, so please ensure that you fully understand, and are aware of, the risks and costs involved. Refer to the Risk Disclosure Statement and Risk Fact Sheet.

IG Asia Pte Ltd (Co.Reg.No. 200510021K) is regulated by the Monetary Authority of Singapore and holds a capital markets services licence for dealing in capital markets products that are over-the-counter derivatives contracts and is an exempt financial adviser.

IG provides an execution-only service. The information in this advertisement does not contain (and should not be construed as containing) investment advice or an investment recommendation, or an offer of or solicitation for a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. You should consider your specific investment objectives, financial situation or particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.

The information on this site is not directed at residents of the United States or Belgium and is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

This advertisement has not been reviewed by the Monetary Authority of Singapore.