May/June 2010 - Keppel Offshore & Marine

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BUSINESSKPMI posts 15% rise in 1Q profitsSubic Shipyard is one of three shipyardsoperated by KPMIKeppel Marine Philippines, Inc(KPMI), a subsidiary of KeppelO&M, reported a consolidated netprofit of P185.2 million in the firstquarter of 2010, 15.3% higher thana year ago.Its revenue for the periodamounted to P495.7 million, whileoperating profit was 63.2% highercompared with the same periodlast year, reaching P131 million,due to higher margins and loweroperating costs.Shiprepair contributed 81.5% tototal sales while shipbuilding andfabrication contributed 18.5%.For the second quarter of 2010,KPMI expects more vessels fromthe domestic market to visit itsshipyards for major repair works.KPMI, comprising Keppel BatangasShipyard and Subic Shipyard &Engineering, Inc., serves domesticand international ship owners.Safety rewardsFor clocking eight million incidentfreemanhours during theconstruction of semisubmersiblerig, Maersk Deliverer, MaerskDrilling has awarded a safetybonus of $48,000 to Keppel FELS.Maersk Deliverer is the latestaddition to the trio of DSS TM21 deepwater semisubmersibledrilling rigs built by Keppel FELSfor Maersk Drilling. The unit wasdelivered 43 days early in Aprilthis year.Keppel FELS’s Project Manager forthe rig, Yeong Yew Ming said, “Inthe months spent building MaerskDeliverer, both our project teamshave always placed the utmostpriority on safety. We recognisethat the best productivity can onlybe achieved in a safe worksite.I am very pleased that our efforts,requiring the total commitment ofthe site teams, have paid off.”The rig is already committed toan initial programme with DanaPetroleum for drilling offshoreMauretania, West Africa.The award is testament toKeppel FELS’s solid track recordin executing projects safely andefficiently, as well as to thesafety partnership built overyears of collaboration withMaersk Drilling.Erik Madsen, Site Manager of Maersk Drilling(right) presents the safety bonuscheque to Keppel FELS’s Project Manager, Yeong Yew Ming4OffshoreMarine May – June 2010
BUSINESSFundamental demandAt the Asia Oil & Gas Conferencein June, CB Choo, CEO of KeppelCorporation and Chairmanof Keppel O&M, shared withSri Jegarajah of CNBC Asia onthe industry’s outlook and thechallenges and opportunities inthe face of the Gulf of Mexicocrisis.Is there fear within the industrythat we are going to see aregulatory backlash arising fromthe oil spill incident in the USGulf of Mexico?The moratorium that the USgovernment declared in the USGulf is going to affect all the rigsthere and their operators.Many of them will not wait untilthe moratorium is lifted. Theywill likely move the rigs outbecause there are deepwaterareas in other parts of the worldwhich need such rigs for drillingactivities.The authorities may swing theother way and be overly strict.When that happens, the costwill go up for drillers and oilcompanies, and that wouldaffect the business in the end.Will the regulatory backlash createpressure on margins for yourcompany?What we will see is that new rigswill be required because the oldand less capable rigs may not beallowed to drill in deepwater wells.We need to have a larger sphere ofsafety, not only on the rig, but alsoall the equipment that goes intothe rig.To make sure that things don’t gowrong, there will be more lines ofdefense to ensure that there is noblowout, so all this will add costto the industry. We are in a goodposition to provide this support tothe industry.Will we see a slowdown in newrig orders? Or could this beoffset by increased services andmaintenance contracts?For shipyards like Keppel, we canbuild new rigs, as well as repairand upgrade them.We think there will be morestringent safety requirements andsurvey compliances. There will beless deferment for inspections andsurveys, and fewer waivers.“With a strong balance sheet,we are well-positioned to seizeopportunities as the economyrecovers and capture valuein our key businesses anddeliver sustainable returns toshareholders.”CB ChooCEO of Keppel Corporation andChairman of Keppel O&MFundamentally, the industryoutlook remains sound asoil demand, particularly, inemerging countries in Asia, isrising and is likely to continue torise.Looking at the outlook for the restof the year, and possibly into 2011,how is your orderbook looking?It is better than what we feared,while at the same time, it is not asgood as what we want. This year,our yards are still busy. Since lastyear, Keppel has had zero debt.OffshoreMarine May – June 20105
Page 1 and 2: OFFSHOREMARINEBuilder of distinctio
Page 6 and 7: BUSINESSRigging up repairsProject t
Page 9 and 10: BUSINESSKeppel, Smit and Asian Lift
Page 11 and 12: BUSINESSKudos to excellent serviceK
Page 14 and 15: BUSINESSEngaging global stakeholder
Page 16 and 17: BUSINESSSafety all the wayKeppel O&
Page 18 and 19: SPECIAL FEATUREKeppel Safety Traini
Page 20 and 21: SPECIAL FEATUREContinues on page 20
Page 22 and 23: BUSINESSIn the company of comradest
Page 24 and 25: BUSINESSInnovation tops15 teams fro
Page 26 and 27: BUSINESSChampions for green practic
Page 28 and 29: TECHNOLOGYA squeaky-clean solutionB
Page 30 and 31: PEOPLEPassion and compassion“We h
Page 32 and 33: PEOPLEModel student at workA young
Page 34 and 35: KEPPEL GROUP NEWSBYTESRewarding bus
Page 36: Magnificent fiveGreatship Mohini an

May/June 2010 - Keppel Offshore & Marine

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