Singaporean Keppel reports ”significant progress” in the conversations with fellow Singapore-based company Sembcorp about the merger between the two.

In a press announcement on the results for the first quarter of 2022, Keppel refers to a statement from March that ”significant progress had been made on talks with Sembcorp Marine in relation to the proposed combination of Keppel O&M and Sembcorp Marine, with the parties committed to continue with exclusive negotiations and work towards a definitive agreement by 30 April 2022.”

In addition to the progress of the merger, the company also announces that progress has been made in the sale of Keppel’s ”legacy rigs.”

”Significant progress had also been achieved on advancing the sale of Keppel O&M’s legacy rigs and associated receivables to a separate Asset Co, which would be majority owned by external investors. This transaction is inter-conditional and being pursued concurrently with the proposed combination,” reads the announcement.

According to Loh Chin Hua, CEO of Keppel Corporation, the group is excited by the progress made across various growth opportunities across several sectors.

Keppel has during the last few years been under severe pressure due to a weak offshore market. Last year, the company announced plans to restructure its yard business and that its business was to be split into three parts.

For its overall business, Keppel reports revenue of USD 2,068m for the first quarter, an increase of 9 percent compared to the same period last year.

The report does not include any numbers for Keppel Offshore & Marine (Keppel O&M), but Keppel states that the net loss has been reduced following ”higher productivity coupled with continual efforts to streamline operations and maintain a lean cost structure.”

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