The Singaporean Keppel Offshore & Marine cut another 4900 employees and 670 subcontractors during the first half of 2016, following the restructuring and cost reduction programs, released MandA Business News. The company continue to struggle for new orders, following the downsizing offshore section and crude oil market. The profit and liquidity of Keppel Offshore is dropping sharply after the collapse of oil price and lack of contracts for offshore projects. The company tried to improve its financial statement and liquidity, implementing programs for optimization of operations, restructuring and cost reduction.
The pre-tax profit for Keppel Offshore & Marine Division dropped by 61% to 65 million USD in first half of 20167, which dragged down the result for Keppel Corporation. The offshore builder continue to look for new orders and so far this year succeeded to win contracts for 339.4 million USD.
Keppel Offshore started business restructuring and cost reduction program in beginning of 2015 following the decreasing trend of oil prices. Since then the company reduced its workforce by 11,000 employees and around 8,600 of its subcontract workforce.
Keppel Offshore is among the leaders in the industry in the design and building of high performance mobile offshore rigs.