Keppel Hitachi Cuts Workforce
The recently completed sale of Keppel Marine Industries Limited's marine-related businesses to Keppel Hitachi Zosen for about $99.4 million has allowed Keppel to "carry out a reduction of headcount in the three yards that will result in savings of about $2.9 million a year. Following the consolidation of Keppel Shipyard, Hitachi Zosen Singapore and Keppel Singmarine Dockyard, under Keppel Hitachi Zosen, the Keppel Group is rationalizing its operations to remain competitive.
Keppel Hitachi Zosen Wins Contracts
Keppel Hitachi Zosen Ltd. clinched contracts worth S$60 million. Keppel Hitachi will undertake the construction of a multi-purpose supply vessel for France-based SURF, a member of the maritime branch of the Bourbon Group. It is expected to be delivered in the second quarter of 2002. It will also convert a tanker into a floating production storage and offloading vessel for Nortrans Offshore (S) Pte Ltd, which is expected to be completed in the third quarter of 2001. Keppel Hitachi said it had an order book with a total value of S$614 million.
Keppel Hitatchi Buys Keppel Marine Shiprepair, Shipbuilding Business
Keppel Hitachi Zosen Ltd. has reportedly agreed to buy Keppel Marine Industries Ltd.'s shiprepair and building business for $98.9 million in cash. Keppel Hitachi said it would acquire all of Keppel Marine's investments in Keppel Singmarine Dockyard Pte Ltd., Eagle Engineering Pte Ltd., Keppel UAE-Investment Pte Ltd., Keppel Philippines Marine Inc., and Penguin Boat International Ltd.
Shipyards Hold “Informal” Merger Talks
Keppel Hitachi Zosen reportedly had informal merger discussions with rival SembCorp Marine today. "...we have had informal discussions with SembCorp Marine but we have not come to grips with any hard figures yet," chairman designate of Keppel Hitachi Choo Chiau Beng said following the shipyard's half year results. Singapore is estimated to have an excess shipyard capacity of 20 percent, mostly from the new floating docks commissioned in the last five years. He said Keppel Hitachi might look to sell its excess capacity including its Philippines shipyard, to improve profitability. As for Keppel's rig building arm Keppel FELS, it is targeting to achieve 12 percent return on equity by 2003.
Keppel Hitachi Zosen To Buy Selected Businesses
Keppel Hitachi Zosen Limited (KHZ) has agreed to purchase the shiprepair/shipbuilding and related businesses of Keppel Marine Industries Limited (KMI) for $167 million in cash. Total net assets include $69 million, resulting in a gain of $4 million for KMI. KHZ will acquire all of KMI's investments in Keppel Singmarine Dockyard Pte, Eagle Engineering Company (100 percent), Keppel Philippines Marine (11.6 percent) and Penguin Boat International (16.5 percent). Resulting from this acquisition, KHZ group will offer a full range of shiprepair, conversion and shipbuilding facilities.
Keppel Hitachi, Fels May Merge Offshore Business
Shipbuilder Keppel Hitachi Zosen Ltd. reportedly is in discussions to merge its offshore business with sister company Keppel Fels Energy Infrastructure Ltd., a maker of oil rigs and ships. The activity is presumably spurred by the market reality of increasingly cheaper ship and rig building options available.
Keppel Hitachi Zosen Wins $74.6 million Contract
Keppel Hitachi Zosen has clinched a contract to build two cable laying and repair vessels for a total contract value of more than $74.6 million from C. S. Tycom Reliance, Inc., a subsidiary of Tyco Submarine Systems Ltd. The construction of the cable laying and repair ships will be performed by Hitachi Zosen Singapore, a division of Keppel Hitachi Zosen. Work on the two newbuildings has commenced, with the first vessel scheduled for delivery in the third quarter, and the second vessel in the fourth quarter of 2001. The cable laying and repair vessels, each 7,8000-dwt, are twinscrew, diesel electric-driven and dynamically positioned ships. Measuring 459 ft. (140 m), a breadth of 69 ft. (21 m), with a designed load draft of 25 ft. (7.8 m), the vessels have a speed of 13.9 knots.
High Times Again in Singapore?
Singapore, once revered for its seemingly insurmountable edge in the ship repair and conversion business, has fallen on harder times in recent years. The forces which have slowed the area's break-neck pace of expansion and dominance are not at all unfamiliar to shipbuilders and repairers in the U.S. and Europe: rising land and labor costs, corporate consolidations and a seemingly endless stream of cut-rate competitors. According to recent financial reports from the area, though, it appears that Singapore's two ship repair yards, Keppel Hitachi Zosen Ltd. and SembCorp Marine Ltd., have found the balance to reign supreme once again. The companies were expected to report modest profit growth after almost two years of restructuring and consolidation.
Keppel Hitachi Zosen Garners $161 Million Contract
Singapore-based ship repairer Keppel Hitachi Zosen Ltd said on Monday it won a contract worth about $161 million to build four cable-laying and repair vessels for TyCom Ltd. The company said in a statement that each of the 7,800 dwt ships would be used for installation and maintenance of the Tycom Global Network, a worldwide undersea fiber optic system being deployed by TyCom. Keppel Hitachi had already been awarded an earlier contract in April for two cable-laying and repair vessels. It said the first two vessels would be delivered in 2001 and the other four through 2002
Smedvig Asia To Exercise $61.5 Million Rig Purchase
Keppel Hitachi Zosen Ltd said on Friday that Smedvig Asia intends to exercise its option to purchase the Singapore ship repair specialist's interest in a tender rig for $61.5 million. Keppel Hitachi said in a statement that Smedvig, a unit of Norway's Smedvig ASA, proposed to exercise its option after delivery of the semi-submersible tender rig West Alliance and after commencement of drilling operations.
Singapore Yards Back on Track?
Singapore's two ship-repair yards, Keppel Hitachi Zosen Ltd. and SembCorp Marine Ltd., are expected to report modest profit growth after almost two years of restructuring and consolidation. Keppel Hitachi Zosen was expected to turn in profit of about S$33 million for 1999 after a S$65 million loss for the nine months ended December 1998, analysts said. SembCorp Marine, due to release results today (Feb. 14), should post a 10 percent rise in earnings of between S$78 million and S$80 million against 1998 profit of S$71.81 million. Squeezed by rising land and wage costs, Singapore's shipyard industry underwent a consolidation in 1997 and 1998 that saw the city state's main players reduced to two from four.
Merger Talks In Singapore
Shares of Keppel Hitachi Zosen Ltd. and Keppel FELS Energy & Infrastructure Ltd. surged on market talk the two units of the Singapore conglomerate Keppel Corp. would be merged. Ship repair specialist Keppel Hitachi jumped as much as 47 percent to an eight-month high of S$0.575 before moving back to S$0.51, up 12 cents, in moderate trade of 3.7 million shares. KepFELS, which also has a marine business, rose eight cents to S$0.935 after surging as much as 17 percent earlier to S$1.00 -- a level not seen since the middle of March. Volume was high with more than 10 million shares traded. "The rumours are not new. It seems that day traders were riding the wave," said a senior trader at a local brokerage. A Keppel official said she was "not aware of any corporate development".
Keppel Profits Surge 62%
Ship repair specialist Keppel Hitachi Zosen saw its first-half net profit surge 62.3 percent to $6.57 million versus the same period last year. The Singapore-based firm said it expected to at least maintain its performance in the second half. With the surge in the interim profit, Keppel Hitachi had achieved over 60 percent of analysts' consensus profit forecast for the year of $10.2 million from 16 analysts, according to Multex Global Estimates. Keppel Hitachi, a unit of conglomerate Keppel Corporation, said a strong order book and completion of several conversion and newbuilding jobs boosted its revenue by 70 percent to $175 million. It said the acquisition of Keppel Shipyard Pte Ltd as part of a restructuring exercise also helped lift its revenue.
Singapore Shiprepair Yards To Report Only Modest Gains
Singapore's two ship-repair yards, Keppel Hitachi Zosen Ltd. and SembCorp Marine Ltd., are expected to report modest profit growth after almost two years of restructuring and consolidation. Keppel Hitachi Zosen is expected to turn in profit of about $19.5 million for 1999 after a $38.3 million loss for the nine months ended December 1998, analysts said. SembCorp Marine, due to release results next Monday, should post a 10 percent rise in earnings of between $46 million and $47.2 million against 1998 profit of $42.3 million. Squeezed by rising land and wage costs, Singapore's shipyard industry underwent a consolidation in 1997 and 1998 that saw the main players reduced to two from four.
Keppel Hitachi Zosen Delivers Semi-tender Rig
Keppel Hitachi Zosen (KHZ) has delivered a Semi-Submersible Self-Erecting Tender Rig (SSETR) to Smedvig Asia Ltd (Smedvig). The SSETR was named West Alliance by Mrs. Patricia Chan, wife of Mr. Chan Heng Wah, Drilling Manager of Esso Production Malaysia Inc, at a naming ceremony held in Keppel Shipyard on September 29, 2001. West Alliance has a one plus one optional year drilling contract with Esso Malaysia, which is scheduled to commence in early November this year. Following the exercise of its option, Smedvig will own 100 per cent of West Alliance, and bring the total capital expenditure of the rig to about $85 million. West Alliance represents the newest generation of SSETRs, incorporating the latest technology and equipment.
Keppel Wins $17M Contract
Keppel Shipyard, a member of the Keppel Hitachi Zosen Group, won a $17 million contract from Blue Ice Shipping Corporation to convert a container vessel into a livestock carrier. Maysora -- a 643 x 93 x 52.8 ft. (196 x 28.4 x 16.1 m), 24,515 dwt container vessel will be converted into a fully outfitted livestock vessel with a minimum carrying capacity of 70,560 sheep and 5,640 cattle. Mr Charles Foo, Managing Director of Keppel Hitachi Zosen said, "We were awarded this job based on our competitive pricing and wealth of experience in conversion projects, specifically livestock carrier conversions. During the conversion, Keppel Shipyard will increase Maysora's carrying capacity by maximizing all available space in the vessel.
Keppel Philippines Appoints New Execs.
Keppel Corporation Ltd.'s Group Finance Director, Teo Soon Hoe has been appointed Chairman of Keppel Philippines Holdings, Inc (KPH), following the retirement of Loh Wing Siew. Charles Foo, who currently serves as the managing director of Keppel Hitachi Zosen, will assume Loh's post as Chairman of Keppel Philippines Marine, Inc (KPMI) and Subic Shipyard and Engineering Inc (SSEI). Kevin Wong, who is the executive director and managing director of Keppel Land Limited (Keppel Land) in Singapore, will take over as chairman of Keppel Philippines Properties Inc (KPPI).
Keppel Hitachi Zosen Tapped To Build Harbor Tugs
Keppel Hitachi Zosen, through Keppel Singmarine Dockyard, will build two harbor tugs for S$17 million for the Abu Dhabi Sea Port Authority, Port Zayed in the United Arab Emirates. Both tugs are expected to be delivered in the fourth quarter of 2001. The steel-hulled, twin-screwed, diesel motor-driven harbor tugs will be built to a length overall of 33 meters, a breadth of 10 meters, a depth of 5 meters, and a draft of 4 meters. The tugs will have a bollard pull of 50 tons, and a maximum speed of 13.8 knots. Lum Chee Kong, General Manager of Keppel Singmarine Dockyard said, "Keppel Singmarine's strength lies in the construction of a wide range of tugs and smaller specialized vessels.
KHZ to Deliver Cableships to TyCom
Keppel Hitachi Zosen Limited (KHZ) will deliver its first cable laying and repair vessel to TyCom by end August 2001. The vessel was named TyCom Reliance by Lady Sponsor, Ms Claire Calandra, Executive Vice-President and COO of TyCom at the naming ceremony at Hitachi Zosen Singapore yard yesterday. When commissioned, TyCom Reliance will be the most efficient cable laying and repair ship in TyCom's fleet. KHZ was awarded the first contract to build two cable laying and repair vessels for TyCom in April 2000. Subsequently, TyCom exercised its option to build an additional four sister vessels in November 2000. The second vessel is currently being built in Keppel Shipyard and delivery is expected in the fourth quarter of this year.
Keppel Earnings Strong
Singapore conglomerate Keppel Corporation (KepCorp) and its units will report record profits over the next week, but a lack of progress on the restructuring front will stifle a return of investor interest, analysts say. Funds have neglected KepCorp, once considered a proxy for Singapore because of its interests ranged from telecoms and ship-repair to banking and property, and its shares are now drifting near the bottom of their historical trading range. Analysts expect the group, in which the government has a 32 percent stake, to report another year of record profits for 2000, topping 1999's $127 million. KepCorp's seven listed subsidiaries are Keppel Land…
Keppel Shipyard To Build Semi-Tender For Smedvig
Keppel Shipyard entered into a co-operation agreement with Smedvig Asia recently to build a Semi-Submersible Self-Erecting Tender Rig (SSETR), a contract with a total estimated worth of $82.5 million, $59.5 million of which is Keppel’s share. For its part, Keppel Shipyard will build and own the semi-submersible hull, while Smedvig owns the derrick equipment set. 10-year period. It can also purchase the semi-submersible hull within this time frame. increased deckload and mooring for deeper water. capitalize on the present lower cost of construction, said Nelson Yeo, Executive Director of Keppel Hitachi Zosen.
Jurong, Keppel Hook Up Still Possible
Keppel Corp's outgoing chairman Sim Kee Boon said he did not rule out the merger of the Jurong and Keppel shipyards in the future. "It is quite possible. I will not rule it out. But let the dust settle first and take stock of what we have," Sim said. "It is not a matter of neatness but also a matter of culture, market conditions as well as management," he said. Jurong Shipyard, owned by SembCorp Industries and Keppel's Keppel Hitachi Zosen are Singapore's two biggest shipyards and among Southeast Asia's dominant yards. Speculation has been rife over their eventual merger following persistent comments by Chairman of the Economic Development Board Philip Yeo that Singapore did not need more than one mega yard.
KHZ To Buy Semisubmersible
Keppel Hitachi Zosen Limited (KHZ) is in discussions with Smedvig Asia regarding the latter's intention to exercise its option to purchase KHZ's interest in the semi-submersible tender rig, West Alliance, presently under construction in Keppel Shipyard. The purchase price is approximately $61.5 million. Smedvig has proposed to exercise the option after delivery of the tender rig and after commencement of operations under its drilling contract with Esso Malaysia, which was secured recently and is for a period of one year plus one optional year. Smedvig has announced that start-up of drilling operations is scheduled for early November this year. The construction of West Alliance is proceeding according to schedule.