sparking innovation - keppel land china · dss™38e semi design was recently honoured at the...

Sparking innovationMCI (P) 153/01/2014

OCtOber 2014www.kepcorp.com/ekeppelite

On firm footing 4

Strengthening

commercial

portfolio 18

Cause for

children 44

Keppelite I October 2014

23

Contents

CO REG NO: 196800351N

46

Cover image: Keppel O&M’s second Innovation Awards was held on 3 October 2014 where 25 awards were given out. Receiving one of the Gold awards was the team behind the design for the KFELS N Class and KFELS N Plus jackups.

Published for people in the Keppel Group by the Group Corporate Communications Division, Keppel Corporation Limited, 1 HarbourFront Ave, #18-01 Keppel Bay Tower, Singapore 098632. Printed by Image Printers Pte Ltd, Blk 1002, Redhill Industrial Estate, Jalan Bukit Merah, #03-12, Singapore 159456.

Editorial AdvisorWang Look Fung

EditorFrances Teh

Editorial CommitteeAng Lai Lee, Candice Low, Carol Huang, Cheryl Goh, Chew Chong Peng, Donald Sng, Eileen Tan, Elizabeth Widjaja, Eva Ho, Fairuz Aledroos, Grace Chia, Hayley Teo, Hoo Yao Lin, Ivana Chua, Jayne Yeo, Kevin Ho, Lee Chin Siang, Lee Wan Jun, Liang Hui Hui, Maria Kozhanova, Mia Liu, Priscilla Chong, Razali Maulod, Roy Tan, Sam Neo, Say Huan Yuan, Serena Toh, Sue Ann Huang, Teri Liew, Tracy Pham, Woon Pek Yong, Yolanda Guo, Yu Zehan

SUSTAINING GROWTHOn firm footing 4

Focused on value 9

Sound fundamentals 12

Creditable performance amidst challenges 14

Stronger results by Keppel T&T 17

Stable course

Strengthening commercial portfolio 18

Productivity push 21

Synergy in solutions 22

Leading in sustainability 23

Steady progress

SpeCIAl FOCUSFuelled by innovation 24

Spurring InnovationsA winner in the N Class 26

Refurbishing the world’s largest cruise ship 27

Strategic review 28

Building in sync 29

Capacity boost 30

Landmark of sustainability 31

Showcase for sustainable development 32

Sharing best practice 33

New appointment 34

Safety in hearts and minds

Sterling services 35

Championing CSR dialogue 36

Safety supporter 37

Going for gold

eMpOWeRING lIVeSCan-Do! at ASCOPE 38

Warm inception 40

Race to the finish 41

Keppelites Around the WorldBreaking new ground 42

Rising through the ranks 43

Vintage triumph

NURTURING COMMUNITIeSCause for children 44

Championing volunteerism and philanthropy 45

Catching stars

Keppel VolunteersMaking a difference in diverse ways 46

BACK pAGeKeppel secures $153 million in contracts from 48repeat customers

38


editorial


Unbox thinking, multiply value

The world has changed. Global growth has been weaker than expected and policy headwinds remain in Keppel Land’s core markets of Singapore and China. Our competitors are upping the ante and we cannot afford to be bystanders. We must think and act differently if we want to push ahead of the competition. We must aspire to be the market leader characterised by deeper market knowledge, stronger relationships and more agile and innovative people. This was the charge of Mr Ang Wee Gee, CEO of Keppel Land, to his team during the recent Keppel Land offsite strategy meeting (see story on page 28).

The brand philosophy of ‘Thinking Unboxed’ captures Keppel Land’s thrusts ahead succinctly. It is about looking at new ways to maximise and multiply value as well as enhance our ability to take calculated risks and seize opportunities.

Keppel Land is actively executing its capital recycling strategy. It is exercising discipline in monetising assets and recycling capital to reap better returns. In recent months, it has seized the opportunity to unlock value and divest stakes in Equity Plaza in Singapore as well as BG Junction in Surabaya, Indonesia. The company also announced the proposed divestment of its stake in Marina Bay Financial Centre Tower 3.

Looking within to further leverage synergy and capture more value, Keppel Land is building strategic collaborations with its very own private equity arm, Alpha Investment Partners (Alpha). Together, they acquired a popular mixed-use development, Life Hub @ Jinqiao, in Shanghai, China. In July, Keppel Land invested opportunistically in a prime

residential development in New York City, which will be managed by Alpha.

Keppel Land is scaling up in its cities of focus, strengthening its pipeline of residential as well as commercial developments. It acquired a residential site in West Jakarta, Indonesia, and increased stakes in Phases Two and Three of The Estella in Ho Chi Minh City, Vietnam. Significant moves to strengthen its commercial portfolio include proceeding with Saigon Centre’s Phase Two office tower in Ho Chi Minh City and the SM-KL project’s Phase Two office tower and retail podium extension in Ortigas, the Philippines, as well as the redevelopment of International Financial Centre Jakarta Tower 1 (see story on page 18). Overall, the group’s commercial projects under development will generate a total GFA of 766,000 sm.

Over the last 10 years, Keppel Land achieved an average ROE of 18.9%, making it one of Singapore’s most profitable listed property companies. It has built up a reputation as a choice developer, delivered resilient earnings and achieved benchmarks in corporate governance and transparency. It is refreshing its brand for quality, innovative and sustainable products and services.

Still, the world keeps changing. We cannot rest on what has been. We can think and do more, differently. We can further leverage competencies, synergies, collaborations and networks. We can deliver more value. And we will.

4 Sustaining Growth


4 Sustaining Growth

On track with execution – Over 75% of the first DSS™38E semi for Sete Brasil was completed as at end-September 2014

On firm footingMaintaining strong performance year-on-year, Keppel Corporation achieved a net profit of $1.16 billion in the first nine months of 2014. Keppelite reproduces CeO Mr Loh Chin Hua’s discussion on the Group’s performance and developments at the results webcast.

GlOBAl OUTlOOKThe newsflow from the world in recent months has not been uplifting. While the US is enjoying some form of recovery and the Federal Reserve is rallying some confidence after reaffirming its dovish position, there are renewed concerns over a further weakening Eurozone after disappointing numbers from Germany and an impasse on the sanctions against Russia.

In Japan, the effects of Abenomics have been questioned. Prime Minister Abe’s third arrow might have missed the mark as adverse effects of the consumption t a x h i k e o n d e m a n d are seeming ly greater than expected.

Growth in the emerging economies has slowed down. However, developments in China remain encouraging. The world’s second largest

economy has reassured the world that she has what it takes to achieve an acceptable growth rate of about 7.5% avoiding the hard landing some had feared.

While there are near-term cha l lenges of a r i s ing greenback and the Brent c r u d e d i p p i n g b e l o w US$85 a barrel, many will agree that the longer-term fundamentals remain solid.

The fact that the US is in a much stronger position today than it was a year ago, gives some comfort of a gradual but firmer footing in the recovery of the global economy.

peRFORMANCe HIGHlIGHTSAmids t a cha l l eng ing operating environment, I am pleased to report that in 3Q 2014, our business divisions contributed to a creditable net profit of $414 million. This was down 9% year-on-year mainly due to lower profit contribution from the Property Division, offset by higher contributions from the Offshore & Marine and Investments divisions.

In the first nine months of 2014, we achieved a net profit of $1.16 billion, comparable to the same period in 2013. Annualised Return on Equity (ROE) was 14.5% and Economic Value Added (EVA) was $1 .03 b i l l i on fo r the current period.

OFFSHORe & MARINeAlthough fears of a short-term surplus in oil supply outstripping demand growth amidst an uneven global recovery have led to the


Sustaining Growth 5

recent fall in oil prices, they have not altered the sound industry fundamentals.

Exploration & Production (E&P) investments have to increase to keep up with global oil demand set to rise by 1.1 million barrels per day in 2015. Considering the difficulties faced in maintaining non-OPEC (Organisat ion of the Petroleum Exporting Countries) supply outside N o r t h A m e r i c a , t h e persistent crunch in OPEC’s spare capacity as well as ongoing geopolitical risks in some key producing regions, the overall supply-demand situation seems relatively well-balanced. Oil prices as such, should recover and stabilise at a level that is comfortable to oil producers.

In the offshore and marine space, sentiments have also been coloured by capex cuts by international oil companies (IOCs), declining dayrates and the imminent large number of deepwater and jackup rigs coming out into the market next year. At Keppel, we believe that with the depleting reserves and aging fleet, the industry fundamentals

are still strong. IOCs are kicking the can down the road but at some point they would have to spend to replenish reserves, and drilling contractors would have to replace their old f l ee t w i th new, sa fe r a n d t e c h n o l o g i c a l l y superior rigs.

Meanwhile, the national o i l companies (NOCs) , steered by governments to drive growth, continue to raise their capex and are making up for the shortfall in spending by the IOCs. An example here is Pemex, which plans to boost its annual E&P investment from US$19 billion in 2011 to US$30 bi l l ion in 2016. Independent studies suggest that Pemex will require some US$830 billion in capex in order to develop all its prospective reserves.

I am assured that the good rapport we have built with the NOCs, drillers and operators in Latin America, the Gulf of Mexico, the Middle East, the Caspian Region, Southeast Asia as well as the Arctic, will continue to put Keppel in pole position to capture quality growth in these geographies.

Performing creditably amidst intense competition, the Offshore & Marine Division has secured year-to-date about $3.7 billion worth of new contracts. Apart from new innovative solutions like the GOLAR HILLI FLNG conversion and the KFELS N Plus jackup, we have acquired some new customers like Fecon International, Gulf Drilling International, TS Offshore and UMW Oil & Gas in our latest contracts.

As you can see, we are not standing still both in seeking out new customers as well as in developing with our customers cutting-edge solutions, from which we can capture value.

With a net orderbook of $12.7 billion stretching into 2019, we are in a position to go after quality work that will translate into meaningful earnings. Our prudence in selecting such projects along with our focus on executing well to earn the best risk-adjusted returns have contributed to a stable operating margin of 14.6% for the first nine months of this year, comparable to 14.8% achieved over the same period last year.

Keppel Offshore & Marine i s o n a f i rm foo t i n g to brace and tack these passing headwinds to do even better.

Excellent Execution in BrazilOver in Brazil, as at the end of September, we have completed more than 75% of the first DSS™38E semi for Sete Brasil. We have also completed over 40% of the second semi which is on its way to Brazil as we speak, and are close to achieving 20% on the third unit. I am pleased to share that the DSS™38E semi des ign was recent ly honoured at the annual Singapore Structural Awards for its innovative features.

Our ability to manage and execute complex projects innovat i ve l y and w i th precision across various l o c a t i o n s w a s m a d e possible through sustained investments to improve the skills and productivity of our global yards. BrasFELS, having delivered the FPSO Cidade de Mangaratiba, 18 days early and without incidents to MODEC, was awarded a bonus of four million reais by a very happy customer. We are a lso making good progress on three other FPSO fabrication and integration jobs ongoing at our Brazilian yard.

Continues on page 6...

With a net orderbook of $12.7 billion stretching into 2019, we are in a position to go after quality work that will translate into meaningful earnings.Mr Loh Chin HuaCEOKeppel Corporation

6 Sustaining Growth


Further In-roads into FLNGWithin two months of signing the US$735 million contract to convert the first FLNG vessel, Golar LNG returned to Keppel with a Letter of Intent for a second identical unit. We hope to seal this very soon.

With the introduction of FLNG vessels, global FLNG capex is expected to experience a significant increase over the next six years, amounting to about US$65 billion by 2020. Keppel is looking forward to participate more meaningfully in the growth of this FLNG market. To this end, we have opted to

take 10% stake in the first project, Golar Hilli.

We are convinced that this investment wil l provide us attractive risk-adjusted returns. The equity stake not only strengthens the a l ignment of st rategic interests between Keppel and our customer Golar LNG, but also reflects our confidence in the prospects of Golar Hilli, the world’s first FLNG conversion project. The HILLI LNG carrier has recently arrived at Keppel Shipyard and will soon begin its conversion process.

INFRASTRUCTUReSince the formation of

...continued from page 5.

Keppel Infrastructure over a year ago, we have made steady progress streamlining our infrastructure business to focus on energy-related infrastructure and services. As we hone our strengths and develop new areas for growth, we remain resolute to complete our Engineering, Procurement, and Construction (EPC) projects in Qatar and the UK.

The Doha North Sewage Trea tmen t Work s ha s rece i ved some of the required sewage and is currently going through testing and commissioning. Over in the UK, we are now close to finalising Phase 1 of the Greater Manchester Energy-from-Waste Plant and completing Phase 2 in the first half of 2015.

During the quarter, Keppel Infrastructure Trust entered into an agreement with the National Environment Agency to provide additional incineration capacity for

the Senoko Waste- to-Energy plant. The upgrade will progressively increase the plant’s capacity to treat additional waste volumes by another 10%, which is expected to improve the operating cash flow as well.

The exponential growth in data consumed and generated by organisations and individuals has fuelled demand for data centres in key hubs across the US, Europe and Asia-Pacific where Keppel Telecommunications & Transportation runs a total of nine quality data centres. The latest addition, Keppel Datahub 2 in Tampines, took in its first tenants earlier this year and enjoys healthy occupancy growth. We are right now exploring the potential of a data centre REIT and will provide updates at the appropriate time.

During the quarter, Keppel L o g i s t i c s c o m m e n c e d operations of its 10,000 sm warehouse in Brisbane. Expected to handle more than two million books per annum, the new facility in Australia will establish the company as a leading logistics partner for book publishers. Meanwhile, the construction of its distribution centres in Singapore, Vietnam and Tianjin, China, are on track to complete by year-end.

Building on momentum, w e w i l l c o n t i n u e t o nurture the businesses in our Infrastructure Division, investing prudently and taking thoughtful risks for

Golar’s HILLI LNG carrier at Keppel Shipyard for conversion

We are not standing still both in seeking out new customers as well as in developing with our customers cutting-edge solutions, from which we can capture value.Mr Loh Chin HuaCEOKeppel Corporation


Sustaining Growth 7

growth. We will examine our value chains holistically to determine where the profit pools are, and for niches where we can add value consistently.

pROpeRTyHome sales in Singapore fel l to the lowest level this year in August amid cooling demand. In China, the housing market, which accounts for over 15% of the country’s economy, has further softened with sales slowing in the first eight months of the year, and banks becoming more cautious about lending to developers and investors.

In September however, Beijing took a firm step to boost the economy when it eased mortgage rules and down payments

for second homes. This effectively reversed a four-year tightening campaign on the property sector, and was followed closely by the scrapping of some charges for borrowers of the government housing provident fund.

U n d e r B e i j i n g ’s n e w directives, more homebuyers will now be able to qualify for preferential mortgages and that should help ease pent-up demand. Although the market is warming to the new measures, it will be some time before real improvements take place.

In the first nine months of 2014, our Property Division sold about 1,900 homes in Asia, exhibiting signs of drag from protracted property curbs in its core

marke t s o f S ingapore and China. On a brighter note, over a quarter of the 500-unit Highline Residences were sold during its close-door sale here last month. The encouraging take-up at Highline Residences reaffirms our conviction in selecting sites with strong value propositions.

Looking ahead, Keppel Land will continue to monitor the markets closely to launch new residential projects such as Hill Crest Villa in Chengdu, Waterfront Residence in Nantong, West Vista in West Jakarta and Estella Heights in Ho Chi Minh City.

Recycling Capital for Higher ReturnsWe are positioning ourselves to seize opportunities that may not otherwise be

available in more normal m a r k e t c o n d i t i o n s , building on our pipeline of residential and commercial d e v e l o p m e n t s w h i l s t recycling capital for better returns.

The h ighly-ant ic ipated divestment of Keppel Land’s one-thi rd stake in the Marina Bay Financial Centre (MBFC) Tower 3, valued at $1.25 billion, to Keppel REIT was announced in 3Q 2014. With its significant interest in Keppel REIT, Keppel Land will continue to enjoy a substantial share of the recurring rental income and potential capital value upside while unlocking a net divestment gain of about $95.5 million. This win-win transaction will also see

Keppel Land’s divestment of its one-third stake in MBFC Tower 3 to Keppel REIT will unlock a net divestment gain of about $95.5 million



8 Sustaining Growth


Keppel REIT strengthen its position as a landlord of premium Grade A buildings in Marina Bay and Raffles Place with $8.1 billion of assets under management.

The th i rd quarter a lso saw the completion of the sales of Equity Plaza as well as Keppel REIT’s stake in Prudential Tower. More recently in October, Keppel Land announced the sale of its 80% stake in BG Junct ion, a strata-titled retail development in Surabaya, Indonesia, f o r a p p r o x i m a t e l y $42.8 million, as well as its 51% interest in Al Mada Towers, a condominium development in Jeddah, Saudi Arabia for about $68.4 million. Total net proceeds from divestments of potentially

$970 million in the year-to-date, excluding Prudential Tower, provides Keppel Land with greater financial flexibility to pursue other projects with higher returns in key global cities with good growth prospects, while remaining focused on Asia, with Singapore and China as its core markets.

This year, Keppel Land will be investing close to $972 million to build up its project pipeline. Seizing opportunities in a recovering US property sector, Keppel Land invested US$70 million in a new residential project with a retail component in Manhattan, New York. This investment will be managed by Alpha as part of a growing synergistic collaboration between Keppel Land and its private equity arm. We will continue exploring ways

to fully harness synergies and core expertise of the Group’s business units for growth.

Closer to home, Keppel Land is deepening its presence in Vietnam, Indonesia and the Philippines by building on existing projects to create value, at relatively lower risk. In Ho Chi Minh City, the company is advancing with the development of Saigon Centre Phase 2 to meet the demand for prime office and retail space, and has raised its stake in Phases 2 and 3 of its flagship residential project, The Estella.

In October, Keppel Land also announced that it will proceed to redevelop the existing International Financial Centre Jakarta Tower 1 into a 49-storey state-of-the-art office tower in Indonesia, as well as

embark on Phase 2 of the SM-KL project, a mixed-use development in Ortigas’ CBD in the Philippines.

CONFIGURed FOR GROWTHI would like to conclude by saying that we remain confident of the long-term fundamentals in our key businesses and industries. We w i l l c o n t i n u e t o respond with agility to the challenges and changing macro conditions, seizing opportunities while staying focused on configuring our businesses for sustainable growth. keppelite

Steady progress – Doha North Sewage Treatment Works is currently undergoing testing and commissioning



Sustaining Growth 9

Focused on valueKeppelite reproduces excerpts of the presentation by Mr Chan Hon Chew, CFO of Keppel Corporation, at the live webcast of the Company’s 3Q and 9M 2014 financial results.

S$m 3Q 2014 3Q 2013 % Change 9M 2014 9M 2013 % Change

Revenue 3,185 2,947 8 9,358 8,782 7

Operating Profit 565 568 (1) 1,447 1,388 4

Profit before Tax 642 670 (4) 1,727 1,685 2

Net Profit 414 457 (9) 1,159 1,161 –

EPS (cents) 22.9 25.3 (9) 63.9 64.3 (1)

Keppel CORpORATION’S FINANCIAl HIGHlIGHTS3Q 2014

FINANCIAl HIGHlIGHTSFor 3Q 2014, the Group recorded a net profit of $414 million. While this is 9% below the same quarter last year, it is a 2% improvement from the $406 million profit reported in 2Q 2014.

Earnings per Share (EPS) d e c re a s e d b y 9 % t o 22.9 cents correspondingly. T h e i m p r o v e m e n t i n Economic Value Added (EVA) from $332 million to $620 million, and the positive free cash flow of $655 million for the quarter were mainly due to the proceeds from the sale of Equity Plaza.

The Group’s revenue for 3Q 2014 grew by $238 million or 8% year-on-year (y-o-y), led by higher revenues from the Offshore & Marine (O&M) Division.

O p e r a t i n g p r o f i t o f $ 5 6 5 m i l l i o n w a s comparable to that of last year. While the O&M Division continued to report higher profits, this was o f f s e t b y w e a k e r performance f rom the Property Division.

A l t h o u g h o p e r a t i n g profit was maintained at comparable levels as last year, profit before tax decreased $28 million or 4%, due to lower contributions from associates such as KrisEnergy, k1 Ventures, Seafox 5, and FloaTEC.

SeGMeNTAl ReVIeWOverall revenue in 3Q 2014 rose by 8%, driven largely by revenue growth in the O&M Division, which continues to be the main contributor to the Group’s revenue at 69% for 3Q 2014.

O & M D i v i s i o n ’s 4 3 % increase in revenue i s attributed to the higher volume of work. During t h e q u a r t e r, r e v e n u e recogn i t ion began for four jack-ups, two supply vessels, a multi-purpose rescue vessel and an FPSO topside fabrication and integration.

Infrastructure Division’s drop in revenue was mainly due to lower contribution from our power and gas business as a result of lower prices and gas sales.

Infrastructure Division posted a $6 million or 13% increase in pre-tax earnings y-o-y, driven by higher earnings from the logistics and data centre businesses.

Property also saw a decrease in revenue, primarily due to fewer residential units sold in Singapore and China as compared to 3Q 2013. The deconsolidation of Keppel REIT on 31 August 2013 also contributed to the decrease.

We have established a robust balance sheet and sufficient liquidity to provide us with the necessary financial muscle and flexibility to respond to challenges and opportunities that may come with the changing macro conditions.Mr Chan Hon ChewChief Financial OfficerKeppel Corporation


10 Sustaining Growth


Investment Division’s pre-tax profit increased mainly due to write back of impairment of investment.

The Group’s net profit in the third quarter decreased 9% from $457 million to $414 mi l l ion th is year a s P roper t y ’s 52% or $101 million decline has offset the improvements registered by other divisions.

9M 2014

FINANCIAl HIGHlIGHTSWith three quarters of r e v e n u e g ro w t h , t h e Group registered a 7% or $576 million improvement in the top line to $9.4 billion, largely due to higher revenue from the O&M Division.

This translated to a 4% or $59 million increase in operating profit for the first nine months of the year. The gain from divestment o f E q u i t y P l a z a a l s o contributed to the higher operating profit.

Net profit of $1.16 billion for the first nine months this year is comparable to that of the same period last year.

EPS was 64 cents and annualised Return on Equity (ROE) declined to 14.5%. EVA was higher at $1 billion due to gains from the sale of Equity Plaza.

Our net gearing increased from 11% at the end of the last financial year to

19% this quarter, largely due to capital expenditure and operational working capital requirements.

SeGMeNTAl ReVIeWThe Group earned total revenues of $9.4 billion in the first nine months of the year, 7% higher than the same period last year, on the back of higher revenues from the O&M Division.

Good progress was made on current O&M projects, including those in Brazil.

Major jobs completed year-to-date include five jackup r igs, two FPSO upgrades, an FPSO conversion and an FPSO integration.

Higher revenues in the O&M Division drove the 18%

increase in pre-tax profit for the first nine months of the year. Net investment and interest income was higher, partly offset by lower contributions from associates. Operating margin for the nine months at 14.6% was comparable to last year’s 14.8%.

O&M’s net prof i t was 14% higher than previous year, and remains the top contributor to the Group’s earnings, accounting for 65% of the Group’s nine months earnings.

Infrastructure Division’s l o w e r r e v e n u e w a s attributed mainly to the decrease in contribution from the power generation plant, partially offset by higher revenues from the

logistics and data centre businesses.

The Division’s pre-tax profit was lower for the first nine months of 2014, as there was a reversal of provisions following the finalisation of the sale of the power barge last year. Excluding this reversal, Infrastructure’s pre-tax profit in the first nine months of 2014 would be comparable to that of last year.

Property Division’s revenue decreased, due to lower volume of sales in Singapore and China in 2014 as well as the effects of deconsolidation o f K e p p e l R E I T o n 31 August 2013.

S a l e s w e re l o w e r i n residential projects such as



Sustaining Growth 11

Reflections and Corals at Keppel Bay in Singapore, and 8 Park Avenue in Shanghai. This quarter also saw the absence of revenue from The Lakefront Residences with the project’s TOP in May 2014.

As a result, the Property Division registered a 35% fall in net profit after tax. As highlighted in previous quarters, net profit in the first nine months of 2013 included a write-back of tax provision arising from the finalisation of prior years’ taxation.

FRee CASH FlOWIn the first nine months of

2014, the Group continued to generate strong cash flows from its operations.

$1.54 billion of cash flow w a s g e n e r a t e d f r o m operations, $22 mil l ion more than the previous year. After taking into account higher working capital requirements mainly from the O&M and Property divisions, operating cash outflow for the nine months was $471 million.

Net cash from investing a c t i v i t i e s a m o u n t e d to $344 mi l l ion , wi th $889 million of receipts coming f rom d iv idend income from associates and

divestments including the sale of Equity Plaza.

$545 million was spent on investments and operational c a p i t a l e x p e n d i t u r e , mainly for the O&M and Property divisions.

The resultant cash outflow was $127 million for the first nine months; $895 million lower than 2013.

Keppel will continue to fo r t i f y ou r s t rengths , while remaining focused on our core businesses.

We have established a robust balance sheet and sufficient liquidity to provide us with

the necessary f inancial muscle and flexibility to respond to challenges and opportunities that may come with the changing macro conditions.

T h r o u g h c o n s i s t e n t innovat ion to ach ieve execution excellence in our core operations and a commitment to financial d i s c ip l i ne , we rema in steadfast in our goal to ensure sustainable growth a n d l o n g - t e r m v a l u e creation for our shareholders and customers. keppelite

Keppel Datahub 2 in Tampines welcomed its first tenants earlier this year and is enjoying healthy occupancy growth



Sound fundamentalsSenior management addressed investors’ concerns on the implications of a volatile global economy and sliding oil prices on the Group’s Offshore & Marine (O&M) business at the live webcast of Keppel Corporation’s 3Q & 9M 2014 results. Keppelite reproduces excerpts of the robust question and answer session.

Q. The sharp decline in oil prices will exert severe pressure on exploration and production (e&p) capex over the next few years. What are your views on this? lCH: The sharp decline in the oil prices over the past weeks has had a negative pall on the market. But oil prices are determined by many factors such as OPEC’s operations and the supply from oil producing countries which come under political stress from time to time.

Nevertheless, there is still a need to replenish the

deplet ing reserves and increase production. What is key is that at the current level of about US$85 for a barrel of oil, most of the offshore fields are still economical to develop.

We believe that E&P spending will still remain encouraging in the medium to long term. Of course, in the short term, you can expect to see some oil companies kicking the can down the road and deferring projects. But these projects wi l l eventually have to come on stream. Meanwhile, national oil companies (NOCs) like Pemex have ambitious plans

to raise production and will be looking to grow their E&P investments over the next few years.

Our Near Market, Near Customer strategy has served us very well, and has enabled us to develop new solutions for new customers. E ven a s we bu i l d on relationships with existing customers, we will also be looking for new areas to grow, be it in the Arctic or floating LNG (FLNG).

Q. There have been rather few contract wins in 3Q 2014, is this a reflection of a softening

rig market particularly of jackups?lCH: On the O&M side, we continue to see robust enquiries across our spectrum of solutions. Third quarter was a bit slow in terms of the orders secured but rest assured that we are working very hard.

Cyy: On the supply side, a lot of the jackups currently built in China are speculative ones, and will probably be used for the domestic market . There i s a l so likelihood that many of these China-built jackups will be delayed. The surplus jackups will hopefully be absorbed

Keppel O&M has been serving the Brazilian oil and gas market for the past 15 years



into the marketplace in the next one to two years.

That said, we are still getting very good and s t rong enquiries from NOCs and regional operators and continue to be optimistic about jackup prospects.

Q. How many FlNG vessels can Keppel convert each year? Would Keppel consider taking equity stakes in the second and third Golar FlNG vessels?Cyy: We are looking at a mix of both FPSO and FLNG projects and plan to do about two FLNG conversions a year.

l C H : We w e re q u i t e happy to take the initial 10% stake because we believe that the Golar Hilli is a good project. As I have said before, this is a good alignment of interests between Keppel and our customer Golar LNG. We are open to looking at similar collaborations in the future but nothing is firm at this stage.

Q. How soon will a firm agreement with pemex be signed and when can the Mexican yard start operations? Cyy: We are in advanced d i s c u s s i o n s o n t h e shareholders’ agreement and hope to conclude that agreement with Pemex around 1Q 2015. The yard is divided into several phases, and it will take about 18 months after we ink the

agreement to start the first phase of operations.

lCH: What’s relevant here as well is that we have the six potential jackup contracts. Even though the yard may take 18 months to start operations, we can begin work on the six jackups before then because part of those will be built outside the Mexican yard.

Q. Are you likely to complete the first dSS™38e semisubmersible (semi) early since it is already over 75% completed? What else is left to be done? Cyy: The remaining 25% of the f i r s t DSS™38E semi comprises topside integration, mechanical c o m p l e t i o n a n d commissioning work. At this point in time, we are pretty much on schedule.

lCH: We are very pleased that our projects are well executed. So far, we have not had any negative surprises on our Brazilian projects. We have been able to execute according to plan, on time and on budget.

Q. Could you give a status update of the two FpSO projects for petrobras? Cyy: We are on schedule and on budget for our scope of work on both projects, which entails the fabrication and integration of topside modules. We are presently

waiting for Petrobras to send us the first hull, which is being constructed at another yard in Brazil.

Q. Is Keppel affected by the current uncertain political environment in Brazil along with recent corporate scandals in the oil industry there?lCH: Keppel has been in Brazil for a number of years and operated under several administrations. The environment is challenging but we have been able to navigate the market quite well by focusing on commercial work.

Cyy: We are focused on being able to deliver projects on time, on budget, and with the quality required. As Chin Hua said, we have worked through several administ rat ions in our 15 years in Brazil. The political situation there is constantly evolving but we have always concentrated on executing well, making sure that we have good relationships with our key customers and investing to develop our yard. We continue to be in a good position moving forward.

Q. Are there concerns about the potential profitability of projects that Keppel is executing for the first time, such as the subsea construction vessel in Baku Shipyard and the Golar FlNG conversion? lCH: We look at each project very carefully before taking

them on. It is not just about winning the contract, we are also very concerned about potential execution risks. We pay special attention to projects that we will be doing for the first time. For instance, we did a very extensive FEED study before sealing the first FLNG contract. It took awhile but it was all for a good reason as we wanted to ensure that the risks were properly calibrated.

Cyy: We have built subsea construction vessels before at Keppel Singmarine. This is not a new project to us. The engineering, procurement a n d c o n s t r u c t i o n methodology are all done in close collaboration with Keppel Singmarine. In fact, part of the vessel will be built in Singapore, before it is brought over to the Caspian Sea for integration and outfitting at Baku Shipyard.

We give a lot of thought to execution before finalising the p lans and s ign ing contracts with our customers. We have done a jackup and a semi in the Caspian Sea before. We are also currently doing the DSS™38M semi there. Again, a lot of the work such as engineering and procurement are being done with the support of our Singapore office and this minimises the risks. keppelite

Speakers:

lCH – loh Chin Hua, CeO of

Keppel Corporation

Cyy – Chow yew yuen, CeO

of Keppel Offshore & Marine



Creditable performance amidst challengesKeppel Land recorded net profit of $308 million for the first nine months of 2014, down marginally by 3.3% year-on-year (y-o-y). As part of its continuing efforts to recycle capital, Keppel Land divested Equity Plaza and received a net gain of $59.5 million. The gain from the sale of Equity Plaza and a share of Keppel REIT’s gain from the divestment of its 92.8% stake in Prudential Tower was partly offset by a loss of $20.3 million arising from the dilution of interest in Keppel REIT and higher tax expense. Net profit would have been higher by 7% if not for a tax write-back of $30.7 million in the same period in 2013.

P ro f i t f r o m p ro p e r t y t rad ing fe l l by 34.6% y-o-y to $135.9 million on lower contributions from Singapore and China projects as well as an absence of tax write-back. Profit from property investment rose by 1.2% y-o-y to $92.5 million due to increased contribution from Marina Bay Financial Centre (MBFC) Tower 3 and share of Keppel REIT’s gain from divestment of Prudential Tower. Property i nves tment ’s sha re o f net profit rose to 34.4% compared with 29% for the same period last year.

E a r n i n g s f r o m f u n d management g rew by 14.6% y-o-y to $42.5 million as a result of higher fee income from Keppel REIT and improved performance from Alpha Investment Partners (Alpha). Fund management made up a larger share of net profit at 15.8% of net profit compared with 11.8% in the same period last year.

Net tangible asset per share rose to $4.59 as at end-September 2014, up by 10.6% from $4.15 as at end-September 2013.

GOOd SAleS AT HIGHlINe ReSIdeNCeS B a s e d o n U r b a n Redevelopment Authority (URA)’s flash estimates, September 2014 saw a 48% month-on-month increase in new private residential sales, with 648 units sold compared with 437 units sold in August. While 3Q sales of about 1,600 units was lower compared with 2,430 units sold in same period last year, market sentiments have improved due to encouraging sales at recent new launches. Private residential price index also eased at a slower pace of 0.6% quarter-on-quarter in 3Q, compared with the 1% fall in the previous quarter.

Keppel Land sold about 280 residential units in Singapore for the first nine months of the year, with about half from Highline Residences at Tiong Bahru (artist’s impression)



($m) Nine Months ended Quarter ended 30 Sep 2014 30 Sep 2013 30 Sep 2014 30 Sep 2013

Turnover 758.2 955.3 168.7 417.9

Pre-tax Profit 423.6 368.1 163.3 156.8

Net Profit 308 318.5 113 126.4

Net Debt/Equity Ratio (x) 0.37 0.44 0.37 0.44

NAV/Share ($) 4.59 4.15 4.59 4.15

Keppel lANd’S FINANCIAl HIGHlIGHTSFor the first nine months of the year, Keppel Land sold about 280 residential units in Singapore, with about half coming from Highline Residences at Tiong Bahru. According to URA, Highline Residences, which saw a take-up of 28% of the project’s total 500 homes over a preview weekend, w a s t h e b e s t - s e l l i n g residential development in September 2014.

CONTINUING SAleS OVeRSeAS Overseas, Keppel Land sold about 1,600 residential units in the first nine months of 2014, of which about 1,420 units were from China. Sales were mostly from The Botanica in Chengdu, Stamford City in Jiangyin, Central Park City in Wuxi, The Springdale in Shanghai and The Seasons Park in the Sino-Singapore Tianjin Eco-City. The recent relaxation of mortgage rules and c red i t -eas ing s igna l i s expected to boost demand from first-time homebuyers and upgraders.

In Vietnam, the Group sold about 140 units in the first nine months, pr imari ly from The Estella and Riviera Point. Rising urbanisation, improving infrastructure as well as a young and dynamic population will continue to support demand for housing in Ho Chi Minh City (HCMC).

Upcoming launches include Waterfront Residence in

Nantong, Hill Crest Villa in Chengdu, Estella Heights (Phase 2 of The Estella) in HCMC and West Vista in Jakarta. Looking ahead, Keppel Land will continue to focus on Singapore, China, Indonesia and Vietnam while being open to opportunistic i n v e s t m e n t s i n k e y global cities.

SCAlING Up COMMeRCIAl pORTFOlIO Keppel Land continues to seize opportunities to unlock value and recycle capital by divesting assets and reinvesting into commercial development overseas.

Following the joint divestment of Equity Plaza with Alpha, Keppel Land announced in September 2014 the proposed divestment of its one-third interest in MBFC Tower 3 to Keppel REIT at an agreed property value of about $1.25 billion. This transaction will contribute an estimated net gain of about $95.5 million upon completion.

In Indonesia, Keppel Land is divesting its entire 80% stake in BG Junction, Surabaya, for $42.8 million. This is in line with its strategy to focus on the Greater Jakarta area. The company has also divested its 51% interest in Al Mada Towers, a condominium development in Jeddah, Saudi Arabia.

In line with its strategy to scale up in high-growth cities and grow its commercial presence overseas, Keppel L a n d a n n o u n c e d t h e redevelopment of the existing Internat iona l F inanc ia l Centre Jakarta Tower 1 into a 49-storey office tower in the Indonesian capital.

T h e c o m p a n y i s a l s o p rog re s s i ng w i t h t he development of an office tower under Saigon Centre Phase 2 which will further establish Saigon Centre as the preferred business address in HCMC. Both developments will leverage demand for prime office space in the central business district (CBD).

Over in the Philippines, Keppel Land is expanding the SM-KL project, its mixed-use development with Phase 2 compris ing a 42-storey off ice bui ld ing and an expansion of the existing five-storey retail component in the Ortigas CBD.

Overa l l , Keppel Land’s commercial projects under development will generate a total GFA of 766,000 sm.

In July 2014, Keppel Land p a r t n e r e d M a c k l o w e Properties, an established New York developer, to acquire a site for a prime residential development with a retail component. The investment wil l be managed by Alpha. Keppel Land wi l l cont inue to invest opportunistically in key global cities with good growth potential, while remaining focused on Asia, with Singapore and China as its core markets.




Both Keppel REIT and Alpha continue to acquire and divest assets selectively. Alpha‘s funds divested two properties in Singapore and two properties in Japan dur ing 3Q. Alpha Asia Macro Trends Funds II, a fund managed by Alpha, has agreed to acquire an office building with a retail podium in Shanghai in 3Q. Keppel REIT recently completed the divestment of i t s 92.8% stake at Prudential Tower. As at end-September 2014, total assets under management (AUM) by Keppel REIT and Alpha amounted to about $17.4 billion when fully leveraged and invested. Total AUM is expected t o i n c re a s e t o a b o u t $ 1 8 . 6 b i l l i o n u p o n completion of the MBFC Tower 3 transaction.

Keppel ReIT pOSTS STeAdy eARNINGSKeppel REIT saw a 16.1% y-o-y growth in net property income to $117.2 million for the nine months ended 30 September 2014 (9M 2014). Property income for the same period also rose 12.0% y-o-y to $141.8 million due mainly to better performance from Ocean Financial Centre and contribution from the 50% interest in 8 Exhibition Street, which was acquired on 1 August 2013.

Keppel REIT’s net income before divestment gain, net change in fair value of investment properties and tax for 9M 2014 was $116.2 million, a 0.3% y-o-y increase as a result of higher net property income and interest income, as well as a greater share of results

of joint ventures and lower amort isat ion expenses. These were partly offset by lower rental support and share of results of associates, higher borrowing costs, management fees and trust expenses, as well as the change in fair value of interest rate swap.

Distributable income for 9M 2014 grew 0.7% y-o-y to $160.3 million. DPU for 3Q and 9M 2014 stood at 1.85 cents and 5.72 cents respectively, equivalent to an annualised distribution yield of 6.4%.

Proactive leasing efforts by the Manager saw positive rental reversions of 32.3% and a high tenant retention rate of 92% in 3Q 2014. Keppel REIT continued to maintain strong committed

occupancy levels of 99.3% for its entire portfolio as at 30 September 2014. Its portfolio has a long weighted average lease expiry of 8.2 years and 6.2 years for its top 10 tenants (by net lettable area) and the entire portfolio respectively.

The Manager has completed the refinancing of all loans due in 2014, with no further refinancing requirements for the next 14 months. A g g r e g a t e l e v e r a g e decreased to 42.1% as at 30 September 2014, with approximately 72% of borrowings on fixed-rate. The year-to-date all-in interest rate stood at 2.2% as at 30 September 2014, while the weighted average term to expiry is 3.5 years. Interest coverage ratio is healthy at 5.1 times. keppelite

Keppel REIT’s net property income rose 16.1% year-on-year partly due to better performance from Ocean Financial Centre




Stronger results by Keppel t&tW i t h h i g h e r r e v e n u e contributions from its data centre and logistics divisions, Keppel Telecommunications & Transportation (Keppel T&T) posted a 31% year-on-year (y-o-y) increase in net profit attributable to shareholders to $18.5 million in 3Q 2014.

Revenue fo r the n ine months ended September 2014 increased by 26% y-o-y to $153.6 million while operating profit increased by 36% to $28.0 million.

Keppe l T&T’s log i s t i c s footprint will be further strengthened in coming months with the completion

of Tampines Logistics Park warehouse in Singapore a n d T i a n j i n E c o - C i t y Distribution Centre in China. Development of the food logistics parks in Anhui and Jilin provinces in China are also underway.

Keppel T&T’s data centre facilities continue to enjoy high occupancy, with Keppel Datahub 2, Singapore’s n e w e s t d a t a c e n t r e development, receiving a healthy take-up rate. The planned data centre real estate investment trust to be listed on the Main Board of the Singapore Exchange is ongoing, subject to market conditions and obtaining

r e l e v a n t r e g u l a t o r y approvals.

Earnings per share were 3.3 cents and 8.7 cents

f o r t h e q u a r t e r a n d n i n e - m o n t h p e r i o d respectively, up 32% and 6.1% from corresponding periods the year before. keppelite

Slated for completion in the coming months, Keppel T&T’s Tampines Logistics Park warehouse will further strengthen the company’s logistics footprint

Stable courseKeppel Infrastructure Trust (K IT ) reported re l iab le performance for the third quarter and nine months of 2014.

Group revenue for the first nine months of 2014 (9M 2014) was $49.3 million. Operation and maintenance income was $37.2 million, 2 .2% lower than the corresponding period last year. This was mainly due to lower production of NEWater and lower power tariff arising from changes

in fuel price, partially offset by higher output from the waste-to-energy plants and higher operations and maintenance tariffs due to changes in consumer price index.

Profit after tax for 9M 2014 was $10.2 million, resulting in earnings per unit of 1.61 cents, which was 6.4% lower compared to the corresponding period in 2013. Cash generated f ro m o p e r a t i o n s w a s $40.9 million for 9M 2014,

11.3% higher compared to last year.

G r o u p u n i t h o l d e r s ’ funds decreased f rom $627.6 million at 31 December 2013 to $588.6 million at 30 September 2014.

The decrease was mainly a t t r i b u t a b l e t o t h e distribution of $49.2 million p a i d t o u n i t h o l d e r s , partially offset by increase in comprehensive income o f $ 1 0 . 2 m i l l i o n f o r the period.

The underlying performance of the three assets in KIT’s portfolio is expected to remain stable. The Trustee-Manager will continue to evaluate asset enhancement opportunities in all three assets and continue to work with i ts sponsor, Keppe l In f ras t ruc ture , to identify and evaluate s u i t a b l e a c q u i s i t i o n s u n d e r t h e e x p a n d e d investment mandate which covers a wider range of i n f r a s t r u c t u re a s s e t s . keppelite



Strengthening commercial portfolio Keppel Land is committed to leverage its expertise and experience as a leading developer of prime office buildings to grow its commercial portfolio in key Asian cities. the company has recently announced plans to expand its mixed-use developments in Vietnam and the Philippines, as well as redevelop an office tower in Indonesia.

VIeTNAMKeppel Land is progressing into the next phase of developing a 37-storey office tower in Saigon Centre Phase Two, its landmark mixed-use development in Ho Chi Minh City (HCMC).

M e a n w h i l e , i t s re t a i l podium, currently under construction, has achieved a p re - commi tment o f about 40%. Anchor tenant, Takashimaya, will house its first department store in Vietnam in the retail podium, taking up about 15,000 sm of retail space.

Sa igon Cent re Phases One and Two are jointly o w n e d w i t h To s h i n Deve lopment Co. , L td and Vietnamese partners, Southern Waterborne and Transportation Corporation and Saigon Real Estate Corporation. Keppel Land holds a 45.3% stake in the development.

Designed by internationally renowned architect, NBBJ o f New Yo rk , Sa i gon Centre Phase Two totalling 42 storeys will comprise 40,000 sm of premium Grade A office space, five levels of 50,000 sm retail

Keppel Land moves ahead to the next phase of developing a 37-storey office tower in Saigon Centre Phase Two, its landmark mixed-use development in Ho Chi Minh City



space and about 200 units of luxury serviced apartments. The total investment cost for Phase Two will be about US$255 million.

Mr Linson Lim, President ( V i e t n a m a n d t h e P h i l i p p i n e s ) , K e p p e l Land, said, “We believe in the long-term growth potential of Vietnam. The country, particularly HCMC, continues to attract foreign direct investments (FDIs) and multinational companies. In tandem with Keppel Land’s strategy to actively recycle capital and further expand its commercial portfolio, we are advancing with the development of Saigon Centre Phase Two to meet the demand for prime office and retail space in HCMC.” S t r a t e g i c a l l y l o c a t e d along Le Loi Boulevard in the heart of HCMC’s central business district (CBD) in District 1, Phase One of the multi-award winning Saigon Centre is currently 95% leased to several diplomatic corps, multinational companies as well as banking and financial i n s t i t u t i on s i n c l ud ing DBS Bank, AIG, Reuters, Mitsubishi Corporation, and IE Singapore. Its 4,000 sm retail mall is fully leased.

THe pHIlIppINeSKeppel Land will also be expanding its mixed-use development, the SM-KL project, with Phase Two compris ing a 42-storey off ice bui ld ing and an

extension of The Podium, an existing five-storey retail component in the Ortigas CBD. The total construction cost for Phase Two i s $336 million.

The p ro j ec t i s j o in t l y developed by Keppel Land, through Keppel Philippine Properties, and Banco de Oro (BDO), the banking arm of the SM Group. Keppel Philippine Properties holds a 40% stake in the SM-KL project.

To be completed in 2019, the new office tower will offer a net leasable area (NLA) of over 89,000 sm of premium grade office space and will be sited above the retail mall. The expansion of the retail mall will add over 34,000 sm of retail space, bringing the total retail NLA to over 50,000 sm when completed in 2016.

M r L i m s a i d , “ T h e Phi l ippines remains an a t t r a c t i ve de s t i na t i on for FDIs. Keppel Land is well-positioned to capitalise on these opportunities as we leverage our expertise and experience as a leading office developer to grow our commercial presence in the region.

“We are confident that when the development is fully completed, it will meet the demand for business process outsourcing space and pr ime off i ces fo r multinational corporations in Manila.”

Phase One of the project comprises The Podium and an office tower which will house the operations of BDO. The office tower, also 42 storeys tall on top of The Podium, wi l l offer about 70,000 sm of NLA when completed in 2015. The Podium is currently about 90% leased to leading brands including Philip Stein, Diamant, Calvin Klein, Topshop, Dorothy Perkins and Nike.

INdONeSIAKeppel Land will redevelop the existing International Financial Centre (IFC) Jakarta Tower 1 into a 49-storey state-of-the-art office tower that will more than double its NLA to approximately 69,800 sm of premium grade office space. The total cost to redevelop the building, excluding land cost, will be approximately $266.4 million (Rp 2,504 billion).

Present ly, construct ion of IFC Jakarta Tower 2, which will have an NLA of 50,200 sm, is progressing on track for completion in 4Q 2015. It is the first project in Indonesia to be conferred the highest Green Mark Platinum Award by the Building and Construction Authority of Singapore ( B C A ) , a n d w a s a l s o recently conferred the Best Commercial Development in Indonesia and Best Green Development at the South East Asia Property Awards held on 16 October 2014.

Keppel Land targets to attain the BCA Green Mark Platinum Award for the redeveloped IFC Jakarta Tower 1 as well.

L o c a t e d a l o n g m a j o r thoroughfare Jalan Sudirman in Jakarta’s financial district and within the golden triangle zone, the current 18-storey IFC Jakarta Tower 1 was completed in 1985 and is 100% owned by Keppel Land. It is currently f u l l y o c c u p i e d w i t h anchor t enant s , Bank Mutiara, Tower Bersama, I t haca Re sou rce s and Rintis Sejahtera.

Mr Sam Moon Thong, P re s iden t ( I ndones i a ) , Keppel Land, said, “We c o n t i n u e t o e x e c u t e Keppel Land’s strategy to actively recycle capital and further strengthen our commercial portfolio. The redeve lopment of IFC Jakarta Tower 1 also reaffirms Keppel Land’s long-term commitment to participate and contribute to Indones ia’s growth. We are conf ident that the prime location and premium quality of the IFC Jakarta complex will attract multinational and local corporations seeking a prestigious address in Jakarta’s CBD.”

Demol i t i on works a re targeted to begin in 1Q 2016. Construction works




for the new tower wil l follow and are scheduled to be completed in 4Q 2019.

According to the World Bank, Indones ia ’s GDP growth averaged 6.3% from 2011 to 2013, and is forecasted to be 5.1-5.4% in 2014. Total FDI realisation in 2Q 2014 reached Rp 78.0 trillion (approximately US$6.8 billion), a growth of 16.9% compared to the same quarter in 2013.

The Economist Intelligence Unit has forecasted FDI levels to remain healthy at an annual average growth rate of 8.7% from 2015 to 2018. This, coupled with the resilient economy, is expected to boost demand for quality office space as more companies set up or expand their presence in Jakarta.

As reported by JLL, from 2011 to 2013, net office demand in Jakarta’s CBD re m a i n e d s t ro n g a n d cons i s ten t l y exceeded 300,000 sm per annum. The occupancy rate for Grade A o ff i ce space in the CBD increased from 80% in 2010 to 94% in 2Q 2014, with premium grade offices achieving an occupancy rate of 96% in the same period. keppelite

Keppel Land will be redeveloping IFC Jakarta Tower 1 in Indonesia. When integrated with IFC Jakarta Tower 2 currently under construction, a new iconic twin-tower office complex will rise in Jakarta’s CBD to meet demand for prime office space




Productivity pushTo champion productivity, Keppel Offshore & Marine (Keppel O&M) sponsored the inaugural Nat ional P roduct i v i t y Month, a national-level initiative by the Singapore Business Federation and the Singapore N a t i o n a l E m p l o y e r s Federation.

The event was officially launched on 7 October 2014 by Prime Minister of Singapore, Mr Lee Hsien Loong, and attended by b u s i n e s s l e ad e r s a n d executives from various industries.

A host of activities, such as

conferences and overseas tra ining miss ions were organised for participants to share ideas and learn from thought leaders and subject-matter experts.

Participants discussed the productivity challenges facing Singaporean businesses and the need to drive change in terms of productivity and efficiency. A key message conveyed is that companies looking to raise productivity s h o u l d l o o k b e y o n d cost reduction to adapt technologies and review organisational methods, manpower and opportunities for collaboration. Employee

engagement was cited as an effective way to unlock productivity within the organisation.

Keppel O&M continues to achieve productivity with a multi-pronged approach. In recognising the importance of employee engagement, the group encourages employees to participate in numerous idea-sharing platforms and contribute towards shaping the growth of the company.

Keppel O&M also partners g o v e r n m e n t a g e n c i e s and sub-contractors to improve work processes

and enhance efficiency. For instance, Keppel Shipyard joined SPRING Singapore’s Partnerships for Capability Transformat ion (PACT) programme in 2013 to develop mutually-beneficial collaborations with its small and medium-sized enterprise vendors and contractors.

Using the funds provided by the PACT programme, Keppel Shipyard worked with contractors to improve their grit blasting system, a method used to prime a vessel’s surface for paint jobs, which improved manpower productivity by up to 30% for each operation. keppelite

Keppel O&M sponsored the inaugural National Productivity Month which was officially launched on 7 October 2014



Synergy in solutionsThe synergy of Keppel’s global network of yards has enabled its offshore and marine division to provide comprehensive solutions to long-standing customer Ensco.

RIGGed Up FOR THe NORTH SeAEnsco’s harsh environment jackup rigs, ENSCO 121 and ENSCO 122, were first completed in Singapore by Keppel FELS before p roceed ing to Keppe l Verolme in the Netherlands for mobilisation works and final acceptance tests in preparation for deployment in the North Sea.

The latest rig, ENSCO 122,

arrived in the Rotterdam yard on 1 September 2014, following the early delivery by Keppel FELS in July 2014. Work at the yard included the modification and installation of various systems with the largest scope being the installation of the Conductor Tensioner Platform and its extensions. Keppel Verolme’s close teamwork with the Ensco engineering site team enabled them to perform the 272 metric tonne load test after just 24 days.

ENSCO 122 departed Keppel Verolme on 27 October 2014 to start its contract with Nederlandse Aardolie Maatschappij (NAM), a Dutch exploration and production

company jointly owned by Shell and ExxonMobil, for drilling in the Dutch and UK sector of the North Sea from 4Q 2014 until 4Q 2016.

An enhanced version of Keppel’s KFELS Super A Class design, ENSCO 122 is designed to drill to depths of 40,000 feet for the most demanding large multi-well platform programmes, ultra-deep gas programmes and ultra-long reach wells. Another rig, ENSCO 123, is currently under construction at Keppel FELS. Earlier this year, in 2Q, ENSCO 121 stayed in the Keppel Verolme yard for mobilisation and crew familiarisation purposes for two months.

RepAIRS AT BRASFelSENSCO 6004 has completed repair works at Keppel FELS Brasil’s BrasFELS shipyard in Angra dos Reis, Rio de Janeiro, Brazi l . The semisubmersible drilling rig left the yard on 12 October 2014.

M e a n w h i l e , r e p a i r s f o r a n o t h e r E n s c o semisubmersible drilling rig, ENSCO 6001, continues and is also slated for completion in 2014.

With growing capabilities in repair and upgrading, BrasFELS continues to have the trust and support of leading rig owners and operators. keppelite

BrasFELS has undertaken a number of repair projects for Ensco, including ENSCO 6001 and ENSCO 6004



Leading in sustainabilityKeppel Corporat ion i s committed to incorporate sustainability in its business strategy and operations. In recognition of the company’s ongoing efforts to drive sustainability in all areas, Keppel was awarded the prestigious ‘Sustainable Business Award’ at the Singapore Sustainability Awards on 8 October 2014.

The annual awards by the Singapore Business Federation are conferred on organisat ions wi th outstanding sustainable business practices, with the aim of facilitating the sharing of best practices among companies and promoting sustainability excellence in Singapore.

In particular, the award g a r n e r e d b y K e p p e l recognises excellence in implementing sustainable practices in the economic, social and environmental

sphe re s to a ch i e ve a common goal of a better future for all.

Companies were assessed b y a j u d g i n g p a n e l

Ms Wang Look Fung (centre), Director of Group Corporate Affairs, Keppel Corporation, received the ‘Sustainable Business Award’ on behalf of Keppel Corporation from Mr Lee Yi Shyan (left), Senior Minister of State, Ministry of Trade and Industry and Ministry of National Development as Mr Teo Siong Seng (right), Chairman, Singapore Business Federation, witnessed the presentation

Steady progressWork continues steadily on the s i x DSS™ 38E semisubmersible drilling rigs which Keppel is undertaking for Sete Brasil.

The lower hull of the second unit has left Keppel FELS for Brazil for integration with the upper hull blocks which are being constructed at BrasFELS in Angra dos Reis, Rio de Janeiro. The lower hull is expected to arrive at BrasFELS in November 2014. keppeliteThe lower hull of the second of six DSS™ 38E rigs for Sete Brasil is expected to arrive at BrasFELS in November 2014 for integration with upper

hull blocks

c o m p r i s i n g s e n i o r representatives from key business and sustainability organisations in the public and private sectors. keppelite


24 Special Focus

Keppelite I October 2014Keppelite I October 2014

Fuelled by innovation

Keppel Offshore & Marine (Keppel O&M) has become synonymous with innovative and high-tech solutions – be it rigs for harsh environments, a floating liquefaction vessel conversion, or more efficient methods fo r bu i l d ing products. At the second Keppel O&M Innovation Awards on 3 October 2014, the group recognised the spirit of innovation behind ideas and solutions which have put Keppel at the forefront of the industry.

A total of 25 awards were presented to winning teams, whereby those who received Gold, Silver and Bronze awards were given cash

prizes of $15,000, $10,000 and $5,000 respectively.

Mr Loh Chin Hua, CEO of Keppel Corporation and Chairman of Keppel O&M, said, “We have always challenged ourselves to be at the forefront of new technologies for the industry, customising solutions to suit the market’s needs. This Innovation Awards, which recognises our efforts since 2009, is a good barometer of how our culture of innovation has progressed. I am heartened to learn that we have kept up our spirit of innovation with a total of 48 teams from 18 business units being nominated.”

Keppel O&M celebrated the agility and innovativeness of the winning teams at the second Keppel O&M Innovation Awards on 3 October 2014

Projects by Singapore and overseas business units were reviewed by a steering committee and assessed based on their level of impact and scalability, extent of alignment between their objectives and the group’s goals, and sustainability of results in the medium to long term.

One of the Gold winners is Keppel FELS’ renowned DSS™ 38 semisubmersible (semi) ser ies. The new generat ion ser ies with superior technical features is a proven design with two units in operation and another seven under construction.

The team behind Keppel Shipyard’s conversion of the world’s first Floating Liquefaction vessel (FLNGV) c o n v e r s i o n w a s a l s o recognised with a Gold award. FLNGV conversion i s more cost effect ive and takes a shorter time to deliver as compared to building such a vessel from scratch. In this new niche market for Keppel, the team developed an enhanced constructabil ity method to improve productivity and safety.

Keppel FELS’ expertise in developing robust rigs for the North Sea environments saw the KFELS N Class

25


25 25


jackup rig and the DSS™ 20NS harsh environment accommodation semi for North Sea also receiving Gold awards.

Mr Chow Yew Yuen, CEO of Keppel O&M, shared, “The success of our innovation and technology was evident from the fact that all of our orders for newbuild rigs in 2013 were for our proprietary designs. We continue to develop advanced and next-generation rig designs for harsh environments. These include the KFELS E Class, KFELS J Class and the KFELS N Plus, for which we have secured an order early this

year. Our innovative products and solutions are what set us apart from our competitors, and make us a preferred partner to our customers.

“Innovation seldom ignites in a vacuum. I am glad to say that the group’s multiple initiatives such as Innovation Quality Circle (iQC) events, Safety Innovation Team (SIT) Conventions and the Productivity and Innovation Steering Committee (PISC) have been very successful in fostering a culture of innovation.”

Keppel FELS overcame the challenge of delivering a

record 21 rigs in 2013 by improving processes and increasing automation. The yard recently customised an automated panel line which increased productivity by at least 30%. These and other process innovations were recognised at the Innovation Awards . A team f rom Keppel Shipyard created an automatic blasting process that not only reduced manpower and resources but also enhanced safety. At Keppel Singmarine, the use of robotic welding has improved efficiency by 83%.

Overseas projects which garnered awards include

the 1,500-tonne gantry crane which was erected at Keppel Subic in 2013; the 2,000-tonne gantry crane which BrasFELS is constructing and a new panel line workshop in Keppel Nantong which is capable of fabricating up to 25,000 tonnes of steel per year.

Mr Chow rallied Keppelites to contribute to Keppel’s innovative edge. He said, “I would like to encourage every Keppelite to stay c u r i o u s a n d t o k e e p experimenting with new ideas. Innovation is, and will always be, an essential Keppel core value.” keppelite

Keppel O&M INNOVATION AWARdS CeReMONy 2014 – WINNeRS

pROJeCT NAMe BUSINeSS UNIT AWARd

Drilling Semisubmersible DSS™ 38 series Keppel FELS & DTG GoldHarsh Environment Accommodation Semisubmersible – DSS™ 20NS Keppel FELS & DTG GoldKFELS N Class Jackup Keppel FELS & OTD GoldConversion of a Floating Liquefaction Vessel (FLNGV) Keppel Shipyard GoldMultipurpose Self Elevating Platform Keppel FELS & OTD SilverCAN-DO Drillship Keppel FELS & KOMtech SilverAutomated Panel Line Keppel FELS SilverIce Class Floating Storage Offloading vessel – MTD13028FSO-IC Keppel Singmarine Silver Composite construction plan for newbuild rigs Keppel FELS Bronze140T Bollard Pull Anchor Handling Tug/ Supply Vessel (MTD 70140A) Keppel Singmarine BronzePiping Digital Factory Keppel FELS Commendation Asian Hercules II – Jib 5 Keppel FELS CommendationConstruction Methodology for the KFELS Super A Jack-up Rig Keppel FELS CommendationAutomatic Blasting System Keppel Shipyard Commendation6-Axis Robotic Welding Keppel Singmarine CommendationSAW-1G Welding Innovation for Flat and Curved Plate Keppel Singmarine Commendation055G – Jackcase Turning System KOMtech CommendationDrilling Rig Unit’s MegaBlock Lifting using 2000MT Gantry Crane Keppel FELS Brasil CommendationFPSO Cidade de Mangaratiba – Flare Tower Lifting Keppel FELS Brasil CommendationEvolution of Cofferdam Method for C-Joining Keppel FELS Brasil CommendationFPSO Cidade de Mangaratiba – New I-tube Installation Keppel FELS Brasil CommendationUnderwater Launchway Integral Connection and Installation Keppel Nantong / Commendation Keppel Nantong Heavy IndustryLift Boat Leg Columns Build Strategy Joining N-KOM CommendationPortable Platform for Rigging Leg Rounds Keppel AmFELS CommendationMobile Offshore Application Barge Keppel Verolme Commendation



Spurring Innovations

A winner in the N ClassOne of the Gold Award winners a t th i s year ’s Keppel Offshore & Marine (Keppel O&M) Innovation Awards is a robust class of jackup rigs.

The team at Keppel FELS’ R & D a r m , O f f s h o r e Technology Development (OTD), had set out to develop a jackup that could withstand the challenging requirements of operating in the North Sea region, one of the world’s

harshest environments for offshore exploration and production.

T h e r e s u l t o f t h e i r unre lent ing pursu i t to innovate a solution is the robust KFELS N Class and KFELS N Plus jackups. At 568 feet (extendable to 598 feet ) or about 56 storeys ta l l , the KFELS N Class jackup unit can operate in severe weather conditions in water depths

of 400 to 500 feet, which a re 40% deeper than traditional units in benign waters.

It is also able to drill to depths of 35,000 feet, which is 15% deeper compared to existing harsh environment jackups.

The KFELS N Class opened up the lucrative Norwegian Continental Shelf market for Keppel FELS and has

Three of the award winning KFELS N Class rigs have already been successfully operating in the North Sea

features that al low the flexibil ity of concurrent dri l l ing and production operations. Three such rigs have been delivered and are successfully operating in the North Sea.

To meet specific market and customer requirements for the rig to work in even deeper wate r depths , the team developed an enhancement to the KFELS N Class design, the KFELS N Plus jackup rig. This latest propriety design is able to operate at a maximum water depth of 500 feet, is capable of drill ing to depths of 35,000 feet and is equipped with a 100-foot cantilever outreach.

An order for the KFELS N Plus was received in March 2014 for delivery in 2017.

Te a m l e a d e r, D r F o o Kok Seng, ED of OTD, said, “In developing the N Class and N Plus series, we f irst had to have a good understanding of our customers’ requirements and the challenges of the North Sea Environment. The team drew on our wealth of experience and expertise in designing and building rigs for the North Sea as well as other parts of the world.” keppelite




Keppel Verolme gave a new lease of life to the world’s largest cruise ship, “Oasis of the Seas”

refurbishing the world’s largest cruise ship

The world’s largest and most innovative cruise ship, “Oasis of the Seas”, has been given a new lease of life by Keppel Verolme which completed the ship’s maintenance and refurbishment works on 14 October 2014.

B e l o n g i n g t o R o y a l Caribbean, the ship measures 362 metres in length, 60 metres in width and more than 70 metres high. It is the first ship to tout the cruise line’s neighbourhood concept of seven distinct themed areas, comprising Central Park, Boardwalk, the Royal Promenade, the Pool and Sports Zone, Vitality at Sea Spa and Fitness Center, Entertainment Place and Youth Zone.

The vessel arrived at Keppel Ve ro l m e ’s R o t t e rd a m shipyard on 30 September 2014 and unde rwen t several modifications to its propulsion units, as well as four bow thruster propellers. At the same time, Royal Caribbean used the drydock period to refurbish passenger facil it ies and renew f ixtures such as 27,000 m2 of carpet. The underwater part of the vessel was cleaned and coated with a state-of-the-art paint system, which will help improve the vessel’s operating as well as fuel efficiency.

Over 200 containers’ worth of new furniture and materials for the refurbishment were

brought on board and about 600 tonnes of waste materials were removed from the vessel.

The most challenging scope of work was the replacement of one of the ship’s main engines. Keppel Verolme dry-docked the “Oasis of the Seas” on a 3.3 metre high dock-block arrangement, which enabled the yard to go under the vessel to remove the engine. To install the new engine, the yard had to cut a hole in the double bottom and lift a 130-tonne engine onto the ship.

Mr Harold Linssen, MD of Keppel Verolme, said, “Together with our partners, we executed a safe and

excellent job in the shortest possible time period. We are proud to see “Oasis of the Seas” depart our yard and sail the seas again in her full glory. This is a continuation of our strong partnership w i th Roya l Car ibbean and the successful project once again demonstrates Keppel Verolme’s quality execut ion capabi l i t ies . We look forward to more opportunities to partner with cruise ship owners and operators.”

Keppel Verolme’s previous project for Royal Caribbean w a s t h e s u c c e s s f u l lengthening of the cruise ship “Enchantment of the Seas” by 22 metres in 2005. keppelite



Strategic reviewKeppelites need to adopt a global mindset, sharpen our skills and continue to foster an innovative and entrepreneurial spirit in order to spur Keppel’s growth in an increasingly competitive environment.

Reiterating this message in his address at the offsite strategy meeting for Keppel Land was Mr Loh Chin Hua, CEO of Keppel Corporation and Chairman of Keppel Land. Held from 24 to 27 September 2014 in Ho Chi Minh City, Vietnam, the conference was attended by directors, management and key executives from Keppel

Land as well as Keppel Corporation.

Mr Ang Wee Gee, CEO of Keppel Land, echoed the call for out-of-the-box thinking. He opined that “Thinking Unboxed is now a necessity to be ahead of the competition” and elaborated on Keppel Land’s strategy to scale up in the company’s key cities of focus, build good local teams as well as forge stronger relations and networks in chosen markets.

The conference reviewed the company’s operations in various markets including its key markets of Singapore

and China, as well as growth markets of Vietnam and Indonesia. Besides taking stock of the year’s progress, the meet ing a l so saw participants chart stratagems for continued growth. Talent management and leveraging the Keppel brand equity were also key topics which sparked robust discussions.

In the same week, leading efforts to a l ign safety practices across operations, Keppel Corporation and Keppel Land’s Board Safety Committees (BSC) as well as senior management visited Keppel Land’s projects in Ho Chi Minh City, including the

work site of Saigon Centre Phases Two and Three, The Estella, Riviera Cove as well as Riviera Point.

The delegat ion, which inc luded Dr Lee Boon Ya n g , C h a i r m a n o f K e p p e l C o r p o r a t i o n , Mr Tan Ek Kia, Chairman of Keppel Corporation’s BSC, Mr Loh Chin Hua, Mr Chan Hon Chew, CFO of Keppel Corporation, and Mr Ang Wee Gee, toured the sites and projects to learn about their safety management systems. They subsequently shared their observations and recommendations with employees and contractors. keppelite

Visiting Keppel Land’s Saigon Centre project site in Ho Chi Minh City were Keppel Corporation and Keppel Land’s Board Safety Committees as well as senior management



be deployed in the Kraken Field in the North Sea. The shipyard recently also secured another contract f rom Bumi Armada to work on a FPSO conversion planned for production in offshore Angola (see story on page 48).

Meanwhile, work is on track for two ice-class supply vessels and an ice-class multipurpose duty-rescue vessel which are under

construction concurrently in Keppel Nantong Shipyard and Keppel Singmarine.

Management and project teams from both Keppel and Bumi Armada Offshore Holdings, a subsidiary of Bumi Armada, celebrated the laying of keels for all three vessels – the two supply vessels in China and duty-rescue vessel in Singapore – on 4 October and 10 October 2014 respectively.

When comp le ted and delivered in 2015, these vessels will support offshore platforms at the Filanovsky oil field in the northern part of the Caspian Sea, off the coast of Russia, providing year-round services such as the delivery of cargoes, salvage, search and rescue funct ions, f i re-f ight ing operations, and towing and tanker mooring operations. keppelite

building in syncKeppel yards mark significant milestones for long-time customer bumi Armada.

Keppel Shipyard marked an important project milestone on 11 October 2014 with the sail-away ceremony of the Floating Production Storage and Offloading (FPSO) vessel, Armada Sterling II, for long-time customer, Bumi Armada Berhad (Bumi Armada).

T h e 1 1 t h s u c c e s s f u l co l laborat ion between Keppel and Bumi Armada since 1997, Armada Sterling II will follow the footsteps of FPSO Armada Sterling I, also converted by Keppel Shipyard, to support the production activities of Oil and Natural Gas Corporation (ONGC) in oil fields to the west of Mumbai, India.

The Keppel Shipyard project team achieved a safety record of over three million safe man-hours without lost-time incidents for the project, which is on track for an on time, on budget delivery. Keppel Shipyard’s work scope for Armada Sterling II includes refurbishment and life extension works, upgrading of living quarters to accommodate 70 personnel, fabrication and installation of an internal turret mooring system as wel l as the installation and integration of topside process modules.

Keppel Shipyard is currently working for Bumi Armada on the conversion of a FPSO to

Management from Keppel O&M and long-time customer, Bumi Armada, celebrating the near-completion of FPSO Armada Sterling II together Bumi Armada’s joint venture partner Shapoorji Pallonji and Armada Sterling II’s charterer ONGC

Management and project teams from Keppel Singmarine and Bumi Armada celebrated the keel laying for the ice-class multipurpose duty-rescue vessel in Keppel Singmarine’s yard



Capacity boostthe Senoko Waste-to-energy (Wte) plant, the only Wte plant in Singapore located outside the tuas region, will undergo upgrading to allow it to take on a larger incineration load by 3Q 2016.

Keppel Infrastructure Trust (K IT ) has entered into a n a g r e e m e n t w i t h S i n g a p o re ’s N a t i o n a l E n v i r o n m e n t A g e n c y (NEA) to provide additional incineration capacity to the Senoko WTE plant, one of the three facilities under KIT’s current portfolio.

To increase its capacity while maintaining its land use footprint, the Senoko WTE plant will undergo u p g r a d i n g , c u r r e n t l y

p lanned to take p lace between 3Q 2015 and 3Q 2016. The upgrade will progressively increase the plant’s capacity to treat additional waste volumes.

Upon complet ion, the contracted incineration capacity of the plant will increase by up to 10% from 2,100 tonnes per day. The capacity payments f r o m N E A w i l l c o r r e s p o n d i n g l y b e increased.

Mr Khor Un-Hun, CEO of Keppel Infrastructure Fund Management , Trustee-Manager of KIT, said, “We will work towards the safe and successful completion of the upgrade, which is also expected to increase the operating cash flow from the plant.”

The upgrading works mainly involve modifications to the plant’s incineration units and the steam-condensate system. They will be carried

out p rogress i ve l y and scheduled with the planned annual maintenance of each incineration unit so as to maximise the overall operational availability of the plant during the period.

Ensuring close coordination with current operations and maintenance (O&M) activities, Keppel Seghers, the O&M contractor for the existing facility, will design and build the upgrades. keppelite

When its planned upgrade is completed, the Senoko WTE plant will see its contracted incineration capacity increase by up to 10% from the current 2,100 tonnes per day



Landmark of sustainabilityKeppel Seghers hosted an exclusive media tour at its landmark Domestic Solid Waste Management Centre in Qatar in conjunction with Doha’s Waste Management and recycling Summit 2014.

Keppel Seghers, the waste-to-energy (WTE) division of Keppel Infrastructure, participated in the Waste Management and Recycling Summit held in Doha over 17 and 18 September 2014. Supported officially by the Supreme Council of Health, Qatar and the Qatar Green Building Council, the two-day Summit saw representatives of government authorities, policy makers, regulatory authorities and technology specialists gathered together to share ideas and understand the significance of managing waste effectively.

The Summit was inaugurated by Sheikh Faleh Nasser J .B in Al -Thani , Under-Secretary Assistant, General Services Affairs, Ministry of Municipality and Urban

Planning, alongside Safar Mubarak Al Shafi, Director of General Cleanness Project, Ministry of Municipality and Urban Planning, Eng Mohammed Bakhamis, HSE Director, Qatar Foundation, and Eng Meshal Al Shamari, Director, Qatar Green Building Council.

The Summit was followed by an exc lus ive media and delegate tour of the Domest i c So l id Waste M a n a g e m e n t C e n t r e (DSWMC). Commenting on the contribution of DSWMC to the sustainability pillar of the Qatar National Vision 2030, Mr Stefan Kipp, Regional Director (MENA), Keppel Seghers, said, “The obvious benefit of WTE is that it mitigates the need for more landfill sites, protecting

the open deserts and land of Qatar for future generations to enjoy.

“The integrated approach we have taken with the Centre means that, of the waste we receive, 95% is now converted to energy or recycled instead of being sent to a landfill. The DSWMC is the result of foresight and vision, and is a major achievement for Qatar. In terms of the technology used and the impact it is having, this facility is a landmark in the region.”

In 2006 the Ministry of Municipality and Urban Planning signed an agreement with Keppel Seghers to design, build and operate the Middle East’s first fully integrated solid waste management

facility. The DSWMC was completed and transferred to government ownership in October 2011. This also marked the beginning of the second phase of agreement, whereby Keppel Seghers continues to operate and maintain the Centre for the Ministry of Environment until 2031.

The Centre is designed to treat up to 2,300 tonnes of mixed domestic solid waste per day, servicing the whole of Qatar. It comprises state-of-the-art waste sorting and recycl ing faci l it ies, an anaerobic digest ion composting plant, a 1,500 tonne-per-day incineration p lan t , and a san i ta r y landfill that meets the most advanced standards in the world. keppelite

Qatari media went behind the scenes to understand how the country is managing its waste at the Domestic Solid Waste Management Centre



Eco-friendly lifestyle

Showcase for sustainable developmentThe Sino-Singapore Tianjin Eco-City (Tianjin Eco-City) is well poised to support China’s urbanisation effort. It is envisioned to be a leader in eco-development, a vibrant model satellite city, and a harmonious city with an innovative social governance framework.

T h i s w a s s h a r e d b y Mr Desmond Lee, Singapore’s Minister of State (MOS) for National Development, in his speech at the 5th China (Binhai Tianjin) International Eco-City Forum and Expo from 23 to 26 September 2 0 1 4 a t t h e B i n h a i International Convention and Exhibit ion Centre.

As part of its efforts in promoting a sustainable lifestyle amongst those who live and work in the Tianjin Eco-City, SSTEC held an educational session on 29 September 2014 to share the importance of waste sorting with its employees, and collect toxic and hazardous waste from them.

During the session, SSTEC e m p l o y e e s b r o u g h t their household wastes which could be toxic and hazardous to the

environment, including used batteries and old electronic appliances, and learnt how to better sort them. A total of 415 pieces of waste were collected from the employees, which could prevent polluting 260 cubic metres of soil or 156,000 tonnes of water.

To continue encouraging w a s t e s o r t i ng i n t h e company, SSTEC also placed collection boxes in the office premises for employees to dispose waste, and will update employees on the

SSTEC employees learning how to sort toxic and hazardous waste

amount of waste collected and environmental pollution

prevented on a monthly basis.

Ms He Luli (first from right, front row), Vice Chairman of the 10th National People’s Congress Standing Committee, Mr Xu Kuangdi (second from left, front row), Vice Chairman of the 10th Chinese People’s Political Consultative Conference (CPPCC), Mr Yuan Tongli (second from right, back row), Member of the Standing Committee of the Communist Party of China (CPC) Tianjin Municipal Committee and Secretary of the CPC Tianjin Binhai New Area District Committee and MOS Lee (third from right, back row) being briefed on the Tianjin Eco-City by Mr Ho Tong Yen (first from left, front row)



Sharing best practiceKeppel seeks to engage its stakeholders and the community at large on sustainability.

To share its experience on sustainable business practice, the Keppel Group hosted over 40 delegates from the Lee Kuan Yew School of Public Policy (LKYSPP) at Marina at Keppel Bay (MKB) and the Keppel DHCS plant at Biopolis@one-north on 20 October 2014.

Through presentations and site tours, the delegates,

comprising mainly Chinese government officials and led by Dr Gu Qingyang, Deputy Director of the Master in Public Administration and M anagemen t (MPA M) programme at the LKYSPP, were able to learn about the initiatives taken by the Marina to conserve marine l i fe and gain a better understanding of the environmental benefits of district cooling.

Mr He Yan, Director of South China Environmental Supervision Center (fifth

S ino-S ingapore T ianj in E c o - C i t y I n v e s t m e n t and Development Co., Ltd. (SSTEC), the master developer of the Tianjin Eco-City, also participated in the event.

MOS Lee and several of China’s leaders v is i ted

SSTEC’s booth a t the Expo, which featured the latest developments and business opportunities for companies in the Tianjin Eco-City. The SSTEC exhibit also showcased a typical day in the life of a resident in the Tianjin Eco-City, allowing visitors to better understand

the sustainable lifestyle difference. Residents from the Tianjin Eco-City were also invited to participate in the exhibition and exchange views with visitors on their living experience.

During his trip to Tianjin, MOS Lee also visited the Tianjin Eco-City and toured the Low Carbon Living Lab in the Eco-Business Park, the public housing project, Binhai Foreign Languages School, No. 3 Community Centre and the Publ ic Util ities Operations and Maintenance Centre.

The Tianjin Eco-City, the landmark bilateral project between the governments of Singapore and China, started its construction in 2008 on a site which comprised mainly

saltpans, barren land and polluted water bodies. After six years of close collaboration b e t w e e n S i n g a p o r e and China, the T ianj in Eco-City is now home to more than 12,000 residents and 1,400 companies. Schools, a neighbourhood centre, parks, business parks and even an adventure theme park are up and running, with a 350-bed general hospital to be completed later this year.

Due to its strong track record as well as its distinct blend of core competencies, the Keppel Group was entrusted to lead the S ingapore consortium for the Tianjin Eco-City project, and works in close tandem with its Chinese consortium partner to guide the 50-50 joint venture, SSTEC. keppelite

MOS Lee interacting with students at the Binhai Foreign Languages School

d i v i s i on ) , M in i s t r y o f Environmental Protection in Guangdong, said, “From design to implementation, Keppel has placed strong emphasis on environment conservation to ensure that its developments are in harmony with nature.”

Mr Mao Hanlin, Assistance Director of the General Office of Qinzhou Municipal People’s Government, was impressed by the technology used at the Keppel DHCS plant and opined that the service has a lot of potential

to take off in China, given the country’s drive for energy conservation.

This is the fourth year that Keppel has hosted participants from the MPAM programme. keppelite



Safety in hearts and mindsKeppel Subic Shipyard achieved seven million safe man-hours without lost-time incidents in September 2014 for its Depletion Compression Platform fabrication work for Shell Philippines Exploration, B.V.’s (SPEX) Malampaya Phase 3 (MP3) project.

SPEX MP2&3’s pro ject manager, Mr Antoine Bliek, presented a plaque of appreciation to the shipyard at the Barangay KAPIS Fiesta on 17 October 2014, an event which convened stakeholders of the project to celebrate achievements and further instil a safety mindset. KAPIS, or Kaligtasan sa Puso at Isipan in Tagalog, means “safety in the hearts and minds”.

“Congratulations to Keppel Subic Shipyard on achieving this safety milestone. We encourage everyone to maintain this commitment to safety in day-to-day operations so that we can complete the project with a strong safety record,” said Mr Bliek.

Mr Leong Kok Weng, President of Keppel Subic Shipyard, received the plaque on behalf of the company. He shared, “Achiev ing th i s s a f e t y m i l e s tone is only possible with the team efforts of Keppel Subic Shipyard and SPEX. Keppel Subic Shipyard has yard-wide safety programmes and systems, such as the Safety Observation Card,

that aim to empower all employees and let them play an active role in workplace safety. By working together with a steadfast commitment

to safety and compliance, we can continue to ensure a safe working environment for everyone involved in the SPEX MP3 project.” keppelite

President of Keppel Subic Shipyard, Mr Leong Kok Weng (far left), receives the plaque of appreciation from SPEX MP2&3 Project Manager, Mr Antoine Bliek (second from right), at the Barangay KAPIS Fiesta

New appointmentAdding on to the strength of Keppel Infrastructure’s leadership team, Mr Patrick K o n g , 4 0 , h a s b e e n appointed the CFO of Keppel Infrastructure on 15 October 2014.

Prior to joining the Keppel Group , Mr Kong was Asia Pacific Region CFO with General Electric (GE), Power Generation Services (Singapore).

Mr Kong’s career spanned over 15 years in GE where he held various positions of increasing responsibilities across multiple business units, including GE Aviation, GE Corporate Audit Staff, and more recent ly, GE Energy, where he also held the Asia Pacif ic Region CFO role.

Mr Kong holds an MBA in International Business from

University of Sheffield, UK, and Bachelor of Laws (LL.B.) Honours, from University of London UK. keppelite

Mr Patrick Kong



Sterling servicesKeppel Logistics, a Keppel Te lecommunicat ions & Transportation (Keppel T&T) wholly-owned subsidiary, has expanded its logistics capabilities Down Under with Keppel Logistics (Australia) Pty Ltd. The wholly-owned subsidiary of Keppel Logistics will manage a 10,000 sm warehouse in Brisbane, Australia.

Located 10 km from Brisbane City, the Stafford facility commenced operations in August 2014 and will establish Keppel Logistics’ position as one of the leading logistics players in the book publication segment. It currently serves as a Regional Distribution Centre serving Wiley’s Australia and New Zealand markets, with Keppel Logistics (Australia) providing warehouse management and local transportation services for the global

publishing company. The fac i l i ty i s expected to handle more than two million books per annum.

Mr Thomas Pang, CEO of Keppel T&T, said, “Keppel Logist ics ’ s t rong track record in providing quality warehousing and third-party logistics services has enabled us to build lasting partnerships with our clients. We are delighted that our productivity and efficiency have paved the way for our maiden foray into Australia and more opportunities in the Asia Pacific region.”

S e p a r a t e l y , f o r i t s customer focus and quality execution, Keppel Logistics was recognised by Frost & Sullivan with the 2014 Singapore Domestic Logistics Service Provider of the Year Award. Keppel Logistics was presented with similar

accolades by Frost & Sullivan four other times in the past six years.

Mr Pang received the award on behalf of Keppel Logistics at an awards luncheon held at the Growth Innovation Leadership Summit: Asia Pacific on 16 October 2014.

In his acceptance speech, Mr Pang attributed this

to the strong trust that Keppel Logistics has built with its customers on the foundat ions of serv ice excellence. Thanking the team, Mr Pang added that the award would spur Keppel Logistics to “work harder and bolster our efforts to innovate and take on any challenges ahead, while continuing to add value to our customers’ businesses.” keppelite

Keppel Logistics expanded its logistics capabilities Down Under with a 10,000 sm facility in Brisbane, Australia

The 2014 Singapore Domestic Logistic Provider of the Year Award from Frost & Sullivan recognises Keppel Logistics’ commitment to service excellence and customer focus



Championing CSr dialogueKeppel believes in doing well and doing good. To promote corporate social responsibility (CSR) among businesses in Singapore, Keppel Corporation and Keppel Land have been steadfast supporters of the International Singapore Compact CSR Summit organised by Singapore Compact, the nat ional CSR society. This year, both companies supported the event once again as Diamond Sponsors.

Held on 16 and 17 October 2014 and themed “CSR: For Sustainable Growth – Balancing Profit, People & P l ane t” , the e ven t brought together over 450 business leaders, policy makers, academics, CSR practitioners and union and civil society leaders for a robust exchange on the latest in international CSR trends.

Representing Keppel in the plenary sessions was Mr Choo Chin Teck, Director of Corporate Serv ices, Keppel Land. Mr Choo shared on the company’s multi-faceted and innovative approaches in ensuring that its business and operations are sustainable.

Speaking on the topic of “Managing environmental challenges – Who should take the lead?”, Mr Choo kicked off the discussion with a thought-provoking dissection of the term “CSR”.

He shared how soc ia l responsibility should not only rest with corporations, but is a responsibility which should be shared by all.

M r C h o o c i t e d t h e example of how Keppel Land played its role as a responsible developer by p lac ing a minimum

Fuel for thought

Someone is sitting in the shade today because someone planted a tree

a long time ago.

Warren Buffett

requirement of BCA Green Mark GoldPlus s tandard for its developments in Singapore and the Green Mark Gold standard for its developments overseas.

He also elaborated on the importance of working c lose l y w i th d i f fe rent

stakeholders to ensure alignment of sustainability goals.

M r C h o o s a i d , “ O u r unwave r i ng app roach towards sustainability, guided by strong eco-principles, has led us to push the bar in this area.” keppelite

Mr Choo Chin Teck, Director of Corporate Services at Keppel Land, shared on the company’s approach in ensuring sustainability in its businesses and operations at the International Singapore Compact CSR Summit 2014



Going for goldMar ina at Keppe l Bay has been reaccredited by Australia’s Marina Industries Association (MIA) with the 5 Gold Anchors, the highest accreditation under the International Rating Scheme for Marinas.

Marina at Keppel Bay was first bestowed the 5 Gold Anchors accreditation in 2010, and was the first marina in Asia to receive the honour. For the latest accreditation, the marina had to undergo a rigorous audit exercise which included a checklist of 101 points

evaluat ing its services, facilities and infrastructure.

At the same t ime, Mr Trevor Fong, GM, Marina at K e p p e l B a y h a s a l s o b e e n c o n f e r r e d t h e title of Certified Marina Professional. He is the first in Asia to receive the title.

Said Mr Fong, “My team has worked hard to push the envelope for better service, infrastructure and environmental standards. We are heartened that our collective efforts have garnered regional and

in te r na t iona l i ndus t r y recognition.

“These latest accreditations will spur us on in our journey

towards achieving excellence for our boaters, visitors and the wider yachting community.” keppelite

Receiving the 5 Gold Anchors accreditation on behalf of Marina at Keppel Bay was its GM, Mr Trevor Fong (centre)

Safety supporterSafety is a top priority at Keppel. Demonstrat ing its commitment to this, Keppel Land participated as a Gold Sponsor at the Nat iona l Occupat iona l Safety & Health Conference in Colombo, Sri Lanka, on 16 October 2014.

Addres s ing some 400 international delegates at the conference was guest of honour Honorary Minister Gamini Lokuge of Sri Lanka’s Ministry of Labour and Labour Relations.

At the exchange, participants

were given insights into industry trends and best practices in the safety and health sector from a global perspective.

Said Mr Tuan Sayar, safety officer at Keppel Land, “We take a proactive approach

towards ensuring the safety and well-being of all our employees and contract staff. Industry events such as these will contribute to the improvement of the safety and health culture in Sri Lanka.” keppelite

Marina at Keppel Bay


38 empowering Lives


38 empowering Lives

Can-Do! at ASCOPeOver 50 Keppelites flew the Singapore and Keppel flags high with their sporting spirit at the 25th ASEAN Council on Petroleum (ASCOPE) Games. This year, the event was hosted by PetroVietnam in Ho Chi Minh City, Vietnam, and took place from 13 to 16 October 2014.

E s t a b l i s h e d i n 1 9 7 5 , ASCOPE comprises the 10 Association of Southeast Asian Nations (ASEAN) country members who are mostly represented by their national oil companies. The bi-annual ASCOPE Games encourages esprit de corps among participants

f rom across Southeast Asia, strengthening regional t i e s a n d p ro v i d i n g a p l a t f o r m f o r f r i e n d l y competition.

L e d b y M r H o e E n g H o c k , M D o f K e p p e l S i n g m a r i n e , A S C O P E Games 2014 Contingent

Head and Pres ident of Keppel Recreation Club, Keppel i tes d isplayed a fervent Can-Do! spirit in the sports of badminton, bowling, golf, table tennis and tennis. Despite the tough competition, Keppel’s bowling and table tennis teams put in a determined

empowering Lives 39


effort to emerge with bronze medals.

“It is good to see the strong participation of the Keppel team. We always want to be competitive and do our best. For the ASCOPE Games, it is also important to build relationships and

camaraderie with fellow participants, which I am sure our Keppelites have done,” said Mr Loh Chin Hua, CEO of Keppel Corporation.

Besides working up a sweat in their respective sports, Keppelites also showcased their musical talents at

t h e A S C O P E G a m e s f a r e w e l l d i n n e r o n 1 6 O c t o b e r 2 0 1 4 , performing a multilingual song medley to ref lect Singapore’s multicultural heritage. It was a rousing performance that earned them the “Best Contingent Performance” title.

Keppel has been representing Singapore in ASCOPE since 2010, previously hosting the 77th ASCOPE National Committee & Associated Meetings in May 2014 and the 23rd ASCOPE Games in July 2010. keppelite

40 empowering Lives


Warm inception

The Keppel family shares a rich history and tradition rooted in strong values. It also provides growth opportunities for those who are willing to work hard and learn.

This was the message by Mr Loh Chin Hua, CEO of Keppel Corporation, as he welcomed more than 180 new Keppelites into the fold at the Group Orientation held on 30 September 2014.

A key highl ight of the day-long programme was a break-out session which

saw Keppel Group senior management sharing their experiences. Conversation w a s r o b u s t b e t w e e n senior management who passionately recounted their journey in the Group and new Keppelites who peppered the session with questions on the Group’s diverse business segments.

M r C h o w Ye w Yu e n , CEO of Keppel Offshore & Marine, was impressed by their enthusiasm. He said, “Having been with the company for 34 years, I wanted to share my story as

you are the people who will shape the future of Keppel. I believe it is only when you understand the company, its culture and where it is heading, and when these resonate with you, you will devote yourselves to writing the next chapter in Keppel’s story.”

For mid-career movers like Pauline Peh, Marketing Manager at Keppel Shipyard, the orientation was a useful way to get to know the Group beyond her everyday scope of work. She said, “Having worked in various

smaller companies before, my first impression upon joining Keppel was its strong corporate identity and core values, which I am now proud to be a part of.”

As part of the programme, new Keppelites were also taken on site tours at the various business units where they were acquainted with operations on the ground.

This included the show gallery of the highly anticipated Highline Residences, Keppel Land’s latest residential development in Tiong Bahru. keppelite

The Group Orientation was an eye-opening experience for new Keppelites

empowering Lives 41


Despite a close fight, cheers erupted all round when Team Atlantic was declared overall winner of the Bowling Challenge

A penalty shootout saw Team Caspian clinching the Soccer Challenge Trophy over runner-up Team Atlantic

SCORe BOARdAs at 14 October 2014

772Team

Atlantic

753Team

Caspian

280Team pacific

race to the finishCompetition intensified as Keppel Games 2014 moved into i ts f inal leg, with Keppelites pushing hard to secure additional points for their respective teams.

pINS OF VICTORy Over 120 Keppelites took a swing at clinching the coveted Bowling Challenge Trophy on 21 September 2014 at Westwood Bowl, Civil Service Club.

The nerve-wrecking first game saw Atlantic 1 securing the top spot while Caspian 6 and Atlantic 5 followed c losely behind. As the tournament progressed, the three teams stayed the course on the top three spots amidst loud cheers from supporting colleagues at every strike.

After a toe-to-toe battle, Atlantic 1 emerged victorious while Caspian 6 and Atlantic 3 held onto the first and second runner-up spots. It was sweet reward for a deserving Team Atlantic as they were presented with the prized Bowling Challenge trophy.

A peRFeCT MATCHThe scorch ing Sunday a f t e r n o o n s u n o n 28 September 2014 may have fatigued players on all teams, but the elated faces at Team Caspian were unmistakable, as they tipped

over Team Atlantic to take home the Soccer Challenge Trophy.

It was a nail-biting final for their Keppelite fans, with

three yellow cards flashed as passions ran high between teams Caspian and Atlantic.

By full time, both teams were held to a stubborn draw and

the game ended with a tense penalty shootout that saw Team Caspian drive the ball deep into Atlantic’s net and onward to a 2-1 victory. keppelite

42 empowering Lives


Keppelites Around the World

When Dr Kuang Pingjian made the decision to relocate to Wuhu City in China’s Anhui province to embark on the Wuhu Sanshan Port project five years ago, his friends and even his wife were surprised by his decision.

Armed wi th a PhD in Computer Science from Sun Yat-Sen University, one of China’s top universities, and with in-depth experience work ing a t numerous multinational companies in senior management positions, Pingjian, 39, had the option to live and work in a first-tier city. Instead, he bravely chose to go to an area that had not yet made the cut as a third-tier city until this year.

Pingjian, Assistant GM of Operation & Engineering at Wuhu Sanshan Port, shared, “At that time, many people thought that my decision to go to Wuhu meant taking a step back. However, I was inspired by my boss, Mr Vincent Ko. I remember him asking me, ‘how many decades does one have in his lifetime and how many of such projects can one be given to see through?’ To me, Wuhu Sanshan Port is one such golden opportunity.”

breaking new groundFrom being an outfit run by only three employees in 2009, Wuhu Sanshan Port has now grown into a river port with over a hundred employees. Located along the Yangtze River, this 50:50 joint venture project between Keppel Telecommunications & Transportation (Keppel T&T) and Sinotrans Ltd will have four 10,000 deadweight tonne berths and an annual handling capacity of more than seven million tonnes when completed.

Tw o o f t h e 1 0 , 0 0 0 deadweight tonne berths of the port’s phase one started trial operations in April 2013. The port can currently accommodate three mil l ion tonnes of break bulk commodity cargo, 600,000 tonnes of break bulk conventional cargo and 100,000 twenty-foot equivalent units (TEU) of throughput.

Pingjian first joined Keppel L o g i s t i c s ( F o s h a n ) , a subsidiary of Keppel T&T, as an IT manager in 2001. Subsequently, he was rotated to the business development department, where he was involved in the evaluation and development of various projects. Later, he took on the challenge to spearhead the

construction and operations of Wuhu Sanshan Port.

He said, “Job rotations are critical for a person to move from a technical role to a managerial one. The exposures I have had to different job scopes and the responsibilities that I have been given have been integral to my career and personal growth.”

Pingjian usually visits his family in Guangzhou once a month. The father of two young children, aged three and eight, shared that he was given the opportunity

to transfer out of Wuhu and move closer to home, but had declined the offer.

He explained, “At a personal level, I have watched this project being built from scratch and have developed a special attachment to it. From a corporate perspective, I strongly believe in the potential of the project and would like to see through its realisation. From a societal perspective, this project has benefited hundreds of families in the city. These are my strong motivations to see the project through.” keppelite

Dr Kuang Pingjian, Assistant GM of Operation & Engineering at Wuhu Sanshan Port, with his wife, Ms Li Qin, at the tourist attraction of Ya Mountain, when she visited him at Wuhu in 2012

empowering Lives 43


rising through the ranks“The yard provides plenty of opportunities and it is up to you to learn as much as you desire to. Think about what your long-term goal is and what you need to learn in order to achieve your dreams.”

Roy Lim, Shipyard Manager at Keppel FELS shared this piece of golden advice with a group of 140 Technical A s s o c i a t e s , A s s i s t a n t Technical Associates, as well as Nitec and Higher Nitec holders on 24 September 2014.

At the session, Roy spoke about his journey in Keppel

Offshore & Marine (Keppel O&M). He recalled his early days at work in Keppel FELS’ predecessor, Far East Levingston, back in 1977 and how he juggled between work and night classes. Starting just as an apprentice, he learnt skills such as welding, cutting and blueprint reading.

In his 37 years with Keppel O&M, Roy has served in various positions, including that of a technician, a foreman, a superintendent, and now as a shipyard manager offering leadership and guidance to thousands of workers.

R e c o u n t i n g h o w t h e challenges he faced made him a stronger and more resilient person, Roy urged the younger generation of Keppelites not to give up when faced with difficulties

Vintage triumph

The 2014 Singapore Formula One race was not just a showcase of the world’s fastest cars but also of vintage sports cars. A 1939 Triumph Dolomite 14/65 Roadster Coupe was on show at the F1 Drivers parade. It belonged to Seow Tiang Keng, Senior Manager (Electrical and Instrumentation) at Keppel FELS who had bought the vintage car at an auction in London last year. Tiang Keng’s passion for engineering, fuelled through his years at Keppel, extends outside the workplace. The engineer in him made it a point to “tropicalise” the British car’s engine by improving the air intake and insulating the exhaust with titanium tapes so that it could be driven in Singapore and Malaysia

but to learn f rom the experience of their seniors.

He said, “The future is in your hands. If you have the right attitude, it will bring you very far.” keppelite

Inspiring 140 Keppelites, Roy Lim, Shipyard Manager at Keppel FELS, (first row, centre, in white) shared candidly on the different lessons he gleaned during his 37-year journey in Keppel O&M

44 Nurturing Communities



Cause for childrenExemp l i f y ing Keppe l ’s commitment to give back to communit ies where it operates, Keppel Land China’s properties and offices joined forces to coordinate fundraising efforts to help underprivileged children.

On 19 and 20 September 2014, charity bazaars were held in The Springdale in Shanghai, Central Park City in Wuxi, Stamford City in Jiangyin, Spring City Golf & Lake Resort in Kunming and Tianjin Eco-City. Residents at the various properties, together with Keppel Land China staff and their families, demonstrated that they could make a difference with collective strength.

Said Wang Ling, a resident of Stamford City, “My family and I are glad to have participated in this meaningful event organised by Keppel Land. Such events give us opportunities to show care to the less fortunate in our community.”

The spirit of giving also spread to the company’s offices in Beijing, Chengdu, Nantong, Shenyang and Zhongshan, where staff contributed pre-loved items such as children’s books, toys and stationery and sold handicraft to raise funds.

A total of RMB 42,000 was raised across the ten cities

and donated to welfare institutions for children in the respective communities.

Said Catherine Chen, overall coordinator of Keppel Land

China’s corporate social responsibility efforts, “With the strong support of my colleagues and the residents in our properties across China, we were able to make

a positive contribution to help needy children in the country. It has been a heart-warming exercise indeed.” keppelite

Keppel Land China’s staff from offices across China raised RMB 42,000 to help needy children

Nurturing Communities 45


Catching starsMore than 30,000 spectators turned up to catch a glimpse of their favourite stars at the “Sino-Singapore Eco-City Night” Concert held on 26 September 2014 in Tianjin City. These included people involved in the development of the Sino-Singapore Tianjin Eco-City (Tianjin Eco-City) as well as many of the Eco-City’s residents.

The concert, which was co-sponsored by S ino-Singapore Tianjin Eco-City Investment and Development Co., Ltd. (SSTEC), the master developer of the Tianjin Eco-City, featured well-known pop singers from Ch ina and S ingapore , including JJ Lin, Kris Phillips and Jeff Chang. Mr Ho Tong Yen, CEO of SSTEC, said, “We are very happy to see a strong turn-out and everyone en joy ing the concer t . Although it rained for a while, this did not dampen

the high spir i ts at the concert. We hope that the concert will highlight the Sino-Singapore character of the Tianjin Eco-City and also showcase the Tianjin Eco-City as an increasingly vibrant and ‘happening’ new city.”

SSTEC is a 50-50 joint venture formed by a Keppel-led Singapore consortium and a Chinese consortium.

Over in Singapore, tenants and v i s i to rs to Ocean F inanc ia l Centre were kept enthralled with the performances by winners of Symphony 92.4FM’s Young Talents Projects.

Held on 24 September 2014, the event was part of MediaCorp’s ‘Symphony in the City’ initiative to bring classical music to a wider audience. It is also in line with Keppel REIT’s objective of showcasing young musical talents. keppelite

Popular singers from China and Singapore entertained over 30,000 people at the Sino-Singapore Eco-City Night Concert

Championing volunteerism and philanthropyGoing the extra mile in doing good for others – 10 exemplary role models were lauded when they received trophies presented by President Tony Tan Keng Yam at the annual President’s Volunteerism & Philanthropy Awards (PVPA) on 15 October 2014. Keppel Care Foundation, having won the President’s a w a r d u n d e r t h e Philanthropy (Corporate) category in 2013, sponsored this year’s Volunteerism t rophy which went to PricewaterhouseCoopers.

Said National Volunteer & Philanthropy Centre’s (NVPC) recently appointed Chief Executive, Ms Melissa Kwee, “I am encouraged

by the innovative means and tireless efforts of our champions. Through PVPA, we want to recognise the depth of love, generosity of spirit and constancy of care and compassion for other people. Our recipients this year remind us that every act of kindness matters and each one of us can be a spark that ignites others to do likewise.”

S o m e 4 0 0 g u e s t s comprising leaders and volunteers from the private and public sectors attended the ceremony. The PVPA is organised by the NVPC, and supported by the Ministry of Culture, Community and Youth, and the National Council of Social Service. keppelite

President Tony Tan Keng Yam presenting the President’s award under the Corporate category for volunteerism to Ms Deborah Ong, Corporate Responsibility Leader from PricewaterhouseCoopers, witnessed by Mr Robert Chong (far left), Director, Human Resources, Keppel Corporation and CEO of Keppel Care Foundation, and Mrs Mildred Tan, Chairman, NVPC (photo courtesy of NVPC)



Making a difference in diverse waysKeppel volunteers from across the Group have been actively reaching out to make a difference in the community through three main focus areas: caring for special needs children, the elderly and the environment.

KITe RUNNeRSStudents from Chaoyang School, under the auspice of Association for Persons with Special Needs (APSN), were in soaring spirits after a kite-making workshop organised for them by Keppe l Vo luntee r s on 9 October 2014.

After crafting and decorating their kites with colour and care, the volunteers and students proceeded to the

highlight of the day – flying the product of their labour.

Capturing the moments on screen, one of the volunteers and an avid photographer, Asmad i Kamsan i f rom Keppel Seascan, recalled, “I didn’t realise that a simple kite-flying session could bring so much laughter and smiles to the students. The weather was perfect for flying kites, and there was good interaction and coordination between the volunteers and students. I t was ve ry sa t i s f y ing to see bonds form over the activity.”

SOOTHING SeReNAdeSIntent on s inging their way to the hearts of the

Strong camaraderie was forged during the kite-making workshop between Keppel volunteers and APSN students

Check mates – senior resident at Ren Ci Nursing Home enjoying a game of chess with a Keppel volunteer

residents of Ren Ci Nursing Home, Keppel Volunteers belted out classic oldies with senior c i t izens at a ka raoke se s s ion on 20 September 2014.

James Lin from Keppel FELS shared, “As the emcee, I was tasked to rally the crowd, which was not difficult. S u p p o r t i v e r e s i d e n t s

participated enthusiastically, clapping along and waving their hands when fellow residents took to the stage.

“I also had the opportunity to pit my Chinese chess skills with an elderly who was so eager for a match that he quickly set his lunch aside to play. I was glad to befriend and bond with him.”

Nurturing Communities 47


ACTIVe AGING E lder l y members f rom St Theresa’s Home and Thye Hua Kwan Bedok Radiance Seniors Activity Centre demonstrated that they were still raring to go at the taichi and bowling act iv i t ies organised by Keppel Volunteers.

Tw e n t y - f i v e K e p p e l volunteers and 38 students from Queenstown Primary School joined the elderly residents of St Theresa’s Home for the taichi event on 26 September 2014. With guidance and support from the volunteers, the residents were able to follow the step-by-step moves taught by the instructor.

Over at the bowling alleys on 4 October 2014, 23 volunteers teamed up with 26 elderly residents for a friendly match. From warm-up exercises to swinging it at the lanes, the volunteers and seniors certainly got the ball rolling.

“It was a rainy Saturday m o r n i n g , b u t o u r participants’ spirits were definitely not dampened. Seeing how the participants had a good time strategising game plans and cheering each other on throughout made the time spent well worth i t ,” commented

L e o n g A i K u e n f ro m Keppel FELS, who started volunteering with Keppel Volunteers two years ago.

pReSeRVING MARINe lIFeNot forgetting to care for the environment amidst progress and urbanisation, Keppel Volunteers also lent a hand at a series of marine biodiversity activities by N a t i ona l P a r k s Boa rd from 11 September to 16 October 2014.

O v e r 3 0 v o l u n t e e r s participated in the activities and assisted staff on-board boats with the gathering of live marine species from the seabed.

With the loads of specimen retrieved from the dredge, the volunteers then headed to St John’s Island to assist with further sorting of the specimens in the laboratory.

By systematically taking s t o c k o f S i n g a p o re ’s marine biodiversity, the volunteers played a part in conservat ion efforts and helped to promote a n a p p r e c i a t i o n o f marine life. keppelite

Keppel volunteers, together with students from Queenstown Primary School, helped senior residents of St Theresa’s Home with taichi moves

Volunteers and seniors from Bedok Radiance Seniors Activity Centre had a rolling good time at the bowling alleys

Keppel volunteers were captivated by Singapore’s marine biodiversity as they assisted with the dredging and sorting of live marine specimens

backPage48


backPage48


backPage48


backPage48

backPage48


Keppel Shipyard and Keppel Nantong Shipyard (Keppel Nantong) have secured cont racts f rom repeat customers worth a total of $153 million.

Keppel Shipyard’s contract is for the conversion of a Floating Production Storage and Off loading (FPSO) vessel for Armada Cabaca, a wholly owned subsidiary of Bumi Armada Berhad ( Bum i A rmada ) wh i l e Keppel Nantong’s contract is to construct a submersible barge for Smit Shipping Singapore (Smit Shipping), a wholly-owned subsidiary of

Keppel secures $153 million in contracts from repeat customers

Royal Boskalis Westminster Group.

Mr Michae l Ch ia , MD (Marine & Technology), Keppel Offshore & Marine, said, “The award of these contracts from Bumi Armada and Smit Shipping affirms the confidence that repeat customers have in the quality of our products and the timeliness which we deliver with. Such high standards in safety, customer service, and operational excellence can be found across our global yards.

“In working with these

The contract for the conversion of a FPSO vessel was awarded by Armada Cabaca, a subsidiary of Keppel’s longtime customer, Bumi Armada. Earlier this year, Keppel Shipyard completed the 10th successful collaboration between Keppel and Bumi Armada, the FPSO Armada Claire

customers who have shown great faith and support in us, we will draw from our working experiences in previous and ongoing projects to continuously improve our performance and provide value-added services.”

K e p p e l S h i p y a rd h a s c o m m e n c e d w o r k o n the FPSO conversion for Bumi Armada which is scheduled to complete in 2Q 2016. The yard’s work scope for th i s pro ject includes refurbishment and life extension works, upgrading of living quarters

to a ccommodate 100 personnel, installation and integration of an external turret mooring system and topside process modules.

The FPSO, wh ich w i l l have a storage capacity of 1.7 million barrels, will be able to handle up to 80,000 barrels of oil per day (bopd), 120,000 barrels per day (bpd) of water injection, and 120 million standard cubic feet per day (MMscfd) of gas handling. Upon completion, the FPSO will be producing for the Angola Block 15/06 East Hub Project that is located 350 km northwest of Luanda, Angola.

Over in China, work has also commenced for the barge that Keppel Nantong is building for Smit Shipping. The new barge, Giant 7, will be the third such unit to be delivered by Keppel to the marine services company. Giant 7 will join the first two units, Giant 5 and Giant 6, which are still undergoing construction, to be deployed in the Wheatstone project, 12 km west of Onslow off the Pilbara coast of Western Australia.

Giant 7 is slated to be completed in 2H 2015, while Giant 5 and 6 are on track for completion in end 2014 and early 2015 respectively. keppelite

Prin

ted

on r

ecyc

led

pape

r

sparking innovation - keppel land china · dss™38e semi design was recently honoured at the...

Documents