Keppel Corp. (BN4.SG), one of the world's largest rig builders, on Thursday posted a 24% rise in net profit for the first quarter, helped by higher earnings at its infrastructure division.
Net profit for the three months through March stood at 260.4 million Singapore dollars (US$186.2 million), compared with S$210.6 million a year ago, the company said in a stock-exchange filing. It said revenue declined to S$1.25 billion from S$1.74 billion the previous year.
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The company, which has trimmed its workforce in the offshore and marine division by nearly half since 2015, said it would "explore ways to achieve further cost savings."
The offshore and marine division's net order book stood at S$3.5 billion as of March, excluding the projects for Sete Brasil Participacoes SA, which is under bankruptcy protection.
Earnings at Keppel's offshore and marine division remained subdued amid low oil prices and an oversupply of rigs, prompting the rig maker to cut costs and focus on its other divisions, such as property and infrastructure.
Net profit at its property division slipped to S$103 million in the quarter from S$106 million a year ago. However, Keppel Infrastructure's net profit for the period rose to S$30 million from S$10 million a year earlier.
Write to Saurabh Chaturvedi at email@example.com
(END) Dow Jones Newswires
April 20, 2017 06:25 ET (10:25 GMT)