Keppel Corp said it has secured more than SGD3bn ($2.2bn) in financial fire power in 2020 to see it through the Covid-19 pandemic.
The Singapore yard group said it had raised the funds in the year-to-date from a combination of loans and committed bank facilities.
Keppel said it had also raised around SGD 800m in bond issuances — including its first samurai bond — via its medium-term note (MTN) programme.
It said this would equip it to “finance its operations even in a scenario of a slow, L-shaped recovery from the Covid-19 pandemic”.
News of the financial resources at its disposal came as the company reported that its offshore and marine arm remained a loss-making venture in the third quarter.
It said the division will “continue to face challenges in profitability for rest of the year amidst challenges faced by the industry”.
Keppel said work was resuming at its Singapore yards, with a workforce of 15,000 now back at work as of the end of September, while ensuring safe management.
The group, which dropped quarterly reporting earlier this year, said it continues to seek opportunities in gas and renewables, while rightsizing to reduce overheads.
Opportunities in gas and renewables
Offshore wind and LNG projects made up 72% of the SGD 900m in the new contracts secured in the year to date, including a SGD 600m offshore renewables contract.
Late last month, Keppel Corp announced a strategic review of its offshore and marine activities, which may see them offloaded or merged with another entity.
The review will see it examine the strategy and business model of its offshore and marine arm, assess its current capacity and global network of yards and restructuring to seek opportunities as a developer of renewable energy assets.
Keppel, which is looking to adopt an increased asset-light business model, said it had “identified assets” that can potentially be monetised over time.
The company said these included rigs owned by Keppel Offshore & Marine, which were described as “non-core assets”, but not fixed assets such as shipyards.
Singapore government-backed investor Temasek Holdings backed out of its $3bn bid to take a controlling stake in the rig-builder via a partial offering in August.
Analysts have long hoped for a consolidation in the rig-building sector through a deal between Keppel's offshore and marine business and rival, Sembcorp Marine.
Keppel, whose businesses range from telecommunications to property development, has seen its share price drop more than 20% since being left at the altar by Temasek.
