The Singapore offshore and subsea builder Keppel Offshore & Marine cut another 2,800 workers in attempt to improve liquidity and balance sheet on the background of troubled industry and low oil prices. The company will cut 500 from the workers in Singapore and another 2,300 from the yards abroad. Despite of the widespread job cuts in 2015, the company’s finance results continue to follow the negative trend. After reporting the latest finance statement it was clear that the cuts were not enough the additional reduces are necessary. Keppel Offshore & Marine posted 41% profit decrease in Q1 2016, as offshore and marine segment revenue slumped because of the deferment of some projects and suspension of contracts related to Sete Brasil. The company management decided to continue to job cuts and aims to achieve high liquidity and cash flows.
Keppel Offshore succeeded to reduce its workforce by 9.4% since the beginning of 2016, as in 2015 13,900 employees from direct staff and subcontracted workforce were released because of the problems in offshore sector and expected prolonged downturn of the sector. The company released that in the first quarter of 2016, it had reduced its total overheads by 28% compared to the first quarter of 2015.
Keppel Offshore & Marine has large network of offshore yards, which successfully delivered almost half of the world’s newbuild jackup rigs and semisubmersibles in the past decade. The company is leader in offshore building and engineering, but after contraction of the market suffer from serious liquidity problems. The company is constantly innovating to stay ahead of the competition, providing cost-effective and state-of-the-art solutions that meet their current and future needs.