Last week, Keppel Corporation Limited (SGX: BN4) released its full fiscal year 2020 earnings report.
It wasn’t a pretty picture.
Revenue for the full year dipped by 13.3% year on year to S$6.6 billion.
Operating profit dived 99% year on year to just S$8.4 million because of a S$651 million impairment that hit the books.
This impairment relates mainly to the offshore and marine (O&M) division.
High interest expenses and other losses at its subsidiaries resulted in Keppel recording a net loss of S$505.9 million.
Excluding this impairment, the group would have been profitable, with net profit coming in at S$446 million versus S$828 million in the previous year.
A final dividend of S$0.07 was declared, down over 40% from the S$0.12 declared last year.
For the full fiscal year, Keppel’s total dividend added up to S$0.10, half of what it paid out in 2019.
However, the most stunning piece of news was the group’s announcement that it intends to exit the offshore rig building business....
