Looking Beyond Backyard Doesn't Pay for Singapore Rig Builders
- Keppel and Sembcorp Marine are set to post weaker results
- Sete Brasil risks bankruptcy amid oil plunge, corruption probe
A Keppel Corp. employee looks down at the company's drydock. Photographer: Jonathan Drake/Bloomberg
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This week, two of Singapore’s blue-chip companies could learn that it doesn’t pay to expand too far afield.
Keppel Corp., the world’s largest builder of oil rigs, may post its lowest annual profit in seven years when it reports earnings Thursday, according to analyst estimates. That same day, shareholders of key customer Sete Brasil Participacoes SA are set to discuss whether it should file for bankruptcy protection after plunging oil prices slammed demand for drilling equipment at the South American company, which is also embroiled in a corruption probe.