Keppel Corp reported a net profit of S$217 million for the financial year of 2017, last week, and added that profits have plunged by a hefty 72 per cent due to the corruption scandal the company had been embroiled in last year.
The organisation revealed that the financial penalty that the corporation was slapped with, coupled with the legal, accounting and forensics costs amounted to S$619 million.
The corporation earned a net profit of S$784 million net profit for the 2016 financial year. If Keppel did not have to pay the financial penalty and other related costs, it would have registered a net profit S$836 million for 2017, turning in 7 per cent higher profits than in 2016.
On a quarterly basis, Keppel recorded a net loss of S$495 million in the 4th quarter of 2017. This is a significant dip from the S$143 million net profit it registered in the fourth quarter of 2016.
As for revenue, the group registered a revenue S$5,964 million for the last financial year, which is 12 per cent or S$803 million lower than the revenue recorded in 2016. Just in the fourth quarter of last year, Keppel recorded a revenue of S$1,545 million which is 20 per cent lower than the S$1,940 million revenue it achieved a year prior.
Interestingly, all of the divisions within Keppel achieved profits with the exception of the Offshore & Marine division which is the one that had been embroiled in the bribery scandal. The group revealed that this division incurred a net loss of S$835 million in 2017, compared to a net profit of S$29 million the year before.
Keppel Corporation CEO, Loh Chin Hua, called the corruption case “a painful chapter for Keppel” and added that the group has put controls in place to ensure that such an event will not occur again:
“The global resolution reached by Keppel O&M brings to an end what has been a painful chapter for Keppel. We have put in place effective compliance controls to ensure that this does not happen again. With the issue now behind us, we look forward to continuing on our growth trajectory and building a more disciplined and sustainable business – a Keppel that will remain trusted and admired by all our stakeholders.”