Keppel Corp says it made a net profit in the first quarter of 2021, despite a continued weak performance at its offshore and marine operation.

All key business units apart from Keppel Offshore & Marine (Keppel O&M) were profitable, the company said in its first quarter update.

However, it said Keppel O&M’s performance improved quarter-on-quarter, with Ebitda for the first quarter turning positive due to improving margins and productivity.

The division was said to have operated at “close to full capacity” in the first quarter. In Singapore, a workforce of about 19,000 has returned to the yards and offices.

Keppel O&M secured around SGD$66m ($49.6m) worth of contracts during the first quarter with work including upgrades and repairs to wind turbine installation and gas-related vessels, among others.​

The company said it was also in “advanced discussions” with Brazilian oil major Petrobras to build a floating production storage offloading vessel for the Buzios field offshore Brazil.

However, the outfit added that no definitive agreements have been entered into as at the date of the announcement.

Keppel O&M’s net orderbook stood at SGD3bn at the end of the first quarter, about 80% of which comprised of renewables and gas-related solutions.

“Keppel’s business units made creditable progress in the first quarter of 2021, against the backdrop of a gradual recovery from the pandemic,” said Keppel chief executive Loh Chin Hua.

The company said it continued to make good progress with the organic transformation of Keppel O&M and is also exploring inorganic options.

On Wednesday, Keppel Corp announced that it had agreed to collaborate with Finnish marine wind-propulsion system designer Norsepower.

Under the deal, Keppel O&M’s technology arm Offshore Technology Development (OTD) will provide the initial survey, design and engineering works, and organise the equipment installation for Norsepower’s Rotor Sails.

Norsepower will deliver project management, delivery, and installation supervision to support smooth installation, servicing and warranty support of Rotor Sails.

The agreement was described as a “significant step” in fully commercialising the Rotor Sail, which is said to be capable of achieving, on average, between 5% and 20% reductions in carbon and other emissions, as well as fuel and fuel costs in suitable conditions.

Norsepower has completed five installations to date and is due to complete its sixth installation of five tilting Rotor Sails on a bulker during the first half of this year.