SIMIC

Keppel announced a strategic review of its businesses under Keppel Offshore & Marine (Keppel O&M) as publicly reaffirmed its commitment to its Vision 2030 realise Keppel’s full potential as an integrated business, providing solutions for sustainable urbanisation. The group said it would explore both organic and inorganic options for the offshore and marine business.

“The financial discipline that Vision 2030 instills has led us to conduct a strategic review of our logistics business, and now, the offshore & marine business. We are working with the Board and management of Keppel O&M to explore both organic and inorganic options for this business with the aim of maximising long-term shareholder value,” said Loh Chin Hua, ceo of Keppel Corp.

Related: Keppel O&M’s workforce reduced to around 20% by Covid-19 dormitory lockdowns

The company said that organic options included reviewing the strategy and business model of Keppel O&M, assessing its current capacity and global network of yards and restructuring to seek opportunities as a developer of renewable energy assets; while inorganic options ranged from strategic mergers to disposal.

Keppel is seeking to become an asset light business and identified assets with a total carrying value of approximately SGD17.5bn ($12.8bn) that could be monetised over time including rigs owned by Keppel O&M, but not fixed assets such as the yards.

Related: Sembmarine to demerge from Sembcorp Industries, announces $1.5bn rights issue

Speculation of a merger of Keppel O&M and Singapore rival Sembcorp Marine has been reignited this year, with the latter being demerged from parent Sembcorp Industries.

Keppel O&M reported a first half loss in 2020 of SGD959m.