Keppel O&M secures $442m offshore renewable shipbuilding contract

12 October 2020 (Last Updated October 12th, 2020 12:30)

Keppel Offshore & Marine (Keppel O&M) has secured a S$600m ($442m) contract from an energy company to deliver a ship for the offshore renewable energy sector.

Keppel O&M secures $442m offshore renewable shipbuilding contract
Keppel O&M will be responsible for the engineering, procurement and construction of the vessel. Credit: Free-Photos / Pixabay.

Keppel Offshore & Marine (Keppel O&M) has secured a S$600m ($442m) contract from an energy company to deliver a ship for the offshore renewable energy sector.

As agreed, Keppel O&M will be responsible for the engineering, procurement and construction of the vessel.

However, the company did not disclose other details, including the vessel’s expected date of delivery.

In a statement, Keppel O&M said: “The above contract is on progressive payment terms and is not expected to have any material impact on the net tangible assets and earnings per share of Keppel Corporation Limited for the current financial year.”

The contract is aligned with Keppel’s Vision 2030, which encompasses seeking opportunities in the renewable energy sector.

Currently, the company is also developing converter stations and substations for the offshore wind energy industry in the German sector of the North Sea and in Taiwan.

It also owns a stake in Blue Tern, one of the world’s largest multipurpose offshore wind turbine installers for the UK North Sea.

Headquartered in Singapore, Keppel O&M focuses on delivering offshore rig design, construction and repair, specialised shipbuilding, as well as vessel repair and conversion.

Last month, Keppel O&M subsidiaries Keppel AmFELS and Keppel Shipyard secured contracts with a combined value of S$200m ($146.6m) for a new dredger and floating storage and regasification unit (FSRU) conversion.

The contracts marked the fifth FSRU conversion and ninth new build dredger for Keppel.