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Celebrating SG50MCI (P) 133/02/2015

AUGUST 2015www.kepcorp.com/ekeppelite

Topping off Jakarta’s

most prestigious

business address 20

Maximising

leadership

potential 35

Reaching out,

touching lives 47

Keppelite I August 2015

20 40

Contents

CO REG NO: 196800351N

47

Cover image: Keppel joined Singapore in commemorating her historic 50th year of independence on 9 August 2015. The Keppel contingent, comprising 36 Keppelites from across the Group, marched with pride at the National Day Parade held at the Padang. Around the world, Keppelites celebrated the nation’s Golden Jubilee and looked forward boldly to the next five decades.

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 AdvisorHo Tong Yen

EditorKevin Ho

Editorial CommitteeAaron Bay, Ang Lai Lee, Brian Higgs, Candice Low, Carol Huang, Cheryl Goh, Chew Chong Peng, Chua Sian Howe, Donald Sng, Eileen Tan, Elizabeth Widjaja, Frances Teh, Gabriela Hott Soares, Grace Chia, Hayley Teo, Hoo Yao Lin, Ivana Chua, Jayne Yeo, Lee Wan Jun, Marianne Goh, Maria Rutz, Mia Liu, Priscilla Chong, Razali Maulod, Ricky Ling, Roy Tan, Say Huan Yuan, Serena Toh, Song Jia Jia, Sue Ann Huang, Tang Yi Bing, Teri Liew, Tracy Pham, Woon Pek Yong, Yolanda Guo

SUSTAINING GROWTHCreating value 4

Staying resilient 12

Engaging stakeholders 16

Topping off Jakarta’s most prestigious business address 20

Steady distributions 22

Safe and sound progress 23

Stellar repair for Stena 24

Safety at the core

Insights into China 25

SPECIAL FOCUSTop honours at WSH Awards 2015 26

Coming on board 28

Victorious in Vietnam 29

Golfing par excellence

Launching the Giant 30

Strategic direction

Guarding against threats 31

Spurring InnovationsNew kid on the welding block 32

A night at the races 33

Reaching out to SMEs

EMPOWERING LIVESCentred on stakeholders 34

Maximising leadership potential 35

Bright sparks 36

Safety matters 37

Engaging REIT stakeholders 38

Nurturing the next generation

Keppelites Around the WorldMan of fortitude 39

Game on! 40

Majulah Singapura 42

Stepping up to good health 43

Celebrating Keppel’s pioneers 44

Bonding in Batam 45

Joyous get-together

NURTURING COMMUNITIESTheatrical treat 46

Reaching out, touching lives 47

BACK PAGEKeppel Shipyard secures contracts 52 worth $125 million

Keppelite I August 2015Keppelite I August 2015

EditorialEngineering value

As Singapore celebrates its Golden Jubilee, we at Keppel stand proud to be part of the Singapore story and to have contributed to the remarkable growth of the nation.

Keppel’s journey, like Singapore’s, has been marked with its fair share of challenges and victories. Our pioneers, armed with the Can Do! spirit, sheer grit and a bold vision to succeed, have etched into history, our transformation from a small division of the old Singapore Harbour Board into a flagship conglomerate with a global reputation for quality, execution and innovation.

As we look into the future, we must also continue to cultivate these very attributes that have underpinned our success. In our immediate horizon, we are facing protracted headwinds from the low oil price, which has taken a toll on our offshore and marine business. Slower growth and greater volatility in the global economy are also impacting our property and infrastructure businesses.

This scenario is not new to us. We have shown time and again, that Keppel has what it takes to turn crises into opportunities. As Mr Loh Chin Hua, CEO of Keppel Corporation, said earlier this year, “It will be our strategy to tide through such periods of downturn by managing our costs, while preparing the Group to seize opportunities as they arise. We have done it before and we will do it again.”

Keppel is undergoing the structured process of value engineering, and we are ensuring that our overheads are well under control, yet still investing in training, enhancing our productivity and in Research and Development (R&D).

In the same vein, the Keppel Offshore & Marine (Keppel O&M) strategy meeting held in August highlighted how Keppelites should use this period to strengthen our capabilities, develop niche

products for adjacent markets and expand our suite of solutions to seize opportunities for growth (see story on page 30).

Our reputation for being reliable has earned us many repeat customers. In executing our substantial backlog of orders over the next few years, we need to ensure that we execute the projects well and deliver them on time and on budget.

Key to providing value to our customers is leveraging technology and innovation to offer improved solutions. We need to continue to invest in R&D to stay ahead of the competition. For example, in new markets such as the Arctic, oil companies are still proceeding with their long-term plans, and we are positioning ourselves to meet their needs. We are also developing new products for adjacent markets such as liftboats for maintenance of offshore platforms, as well as Plug and Abandonment jackup rigs for decommissioning of oil wells. Keppel O&M has also set up a Gas Technology Development arm to tap opportunities in the gas value chain.

There are many ways to navigate a crisis but the most important thing that we need is the right mindset. It is essential to harness synergies and fully exploit our strengths as a conglomerate. Like our pioneers, we need to be resilient and recognise that a crisis is a time for change and an opportunity to improve on what we do. To borrow Keppel Land’s catch phrase, this requires “thinking unboxed”. As we look ahead to the next five decades, we should not be deterred by headwinds, but seize them for growth.

4 Sustaining Growth


4 Sustaining Growth

Creating valueKeppel continues to perform creditably amidst the headwinds of the global economy and its industries. Mr Loh Chin Hua, CEO of Keppel Corporation, presented the Group’s performance and developments at the 2Q & 1H 2015 results briefing held at the Keppel Leadership Institute. His speech is reproduced below.

GLOBAL OUTLOOKThe global economy today is characterised by slower growth and greater volatility. The US economy appears on track for moderate expans ion fo l lowing a sluggish first quarter. With recent improvements in the employment situation, m a r k e t w a t c h e r s a re expecting a Fed rate hike within this year. In her recent testimony, Janet Yellen has all but confirmed this.

Mr Loh Chin Hua (centre), CEO of Keppel Corporation, shared the Group’s performance in 2Q and 1H 2015

Over the past few months, the Greek debt crisis has grabbed international headlines. There are still a few more hurdles to cross before the deal to prevent an exit by Greece is settled and accepted by all parties. How this issue plays out may have long-term implications on the EU. What we can take some comfort in is that even if the worst happens, the transmission effect of an exit by Greece has been greatly reduced.

China’s economy continues to grow steadi ly, at a slower, and possibly more sustainable, pace. Even at this lower rate, China’s absolute growth is still very significant based on a larger US$11.3 trillion economy, compared with f ive or ten years ago. In selected Chinese cities, we have seen improvements in the property market on the back of the government’s stimulus measures. We also saw great

volatility in the stock market, but these are part of the growing pains of a country progressively opening their financial system to the world.

Since the steep fall in oil prices last June, the price of Brent crude has rebounded from the mid US$40 a barrel range, but sti l l remains relatively low, hovering at about an average of US$60 a barrel. With the recent US - I r an nuc l ea r dea l ,


Sustaining Growth 5

sanctions on Iran could be lifted soon and that wil l increase global oi l supply. Lower oil prices for a sustained period is a reality that the oil and gas industry needs to grapple with. Longer term, when supply and demand is more elastic to price levels, many expect oil to stabilise at levels between US$70-90. With shale oil here to stay, we may not see US$100 oil for some time.

I n S ingapore , va r ious factors including the global economic climate will weigh on us. Based on advance estimates, the Singapore economy grew by 1.7% on a year-on-year basis in the second quarter, lower than the 2.8% growth in the previous quarter.

PERFORMANCE HIGHLIGHTSAmid these headwinds, Keppel continues to perform respectably. Comparable to the year before, we achieved an overall net profit of $397 million in the second quarter, and $757 million in the first half of 2015.

Our annual ised Return on Equity (ROE) for the period was 13.1%, while Economic Value Added was $225 million.

To reward shareholders, the Board of Directors has approved an interim distribution of 12.0 cents per share for 1H 2015, which will be paid out in August.

CONSISTENT CONTRIBUTIONS FROM RIDSThe Group’s ab i l i ty to su s t a i n i t s c red i t ab l e performance and dividend payouts are due in some measure to Revaluations, Major Impairments and Divestments (RIDs).

RIDs are a regular course of our business and should not be viewed as one-off or extra-ordinary items. RIDs have constituted about 20% of the Group’s annual earnings every year over the past five years, averaging at about $400 million a year over that period.

In 1H 2015, RIDs contributed $272 million or 36% of the Group’s net profit. This includes a gain of $202 million realised from the sale of our 51% stake in Keppel Merlimau Cogen Pte Ltd (KMC) to Keppel Inf rast ructure Trust in the second quarter. The divestment of the 51% stake in KMC has also unlocked cash of almost $1 billion for the Group.

RECYCLING CAPITAL, CREATING VALUEAs a conglomerate, Keppel is well-placed to capture value by riding on the Group’s unique ability to create good assets, which we can own, manage and then recycle at the right time to earn the best risk-adjusted returns.

We have, over the years, channeled efforts to build up

platforms with which we can unlock value effectively. Our fund management arms in Property and Infrastructure, with a combined Assets Under Management of $23.7 billion to date, will continue to provide a solid base for recycling capital as well as generating stable fee-based income such as asset management fees, facilities management fees, and operations and management fees.

BUSINESS UPDATESWe remain confident of the long-term fundamentals of our chosen industries. At the completion of Keppel Land’s privatisation, we achieved a total shareholding of 99.27% in the company. With that, we have obtained almost full control over all the key business units in Keppel. This will enable us to deploy capital effectively across the Group with a focus on generating sustainable returns.

We will also be able to r ight-s ize our property book to take advantage of the cycles. There will be savings in interest cost est imated to be about $18 million a year borrowing under Keppel Corporation credit. For the half year, the privatisation has yielded an additional $73 million in net profit contributions from Keppel Land.

Our multi-business approach has allowed us to cushion the 25% fall in net profits

from Offshore & Marine with higher contributions f r o m P r o p e r t y a n d Infrastructure to bring us to about even compared to a year ago.

Leveraging the Group’s robust financial position, we will weather the headwinds and posit ion ourselves to build strong business verticals and seize growth opportunities.

OFFSHORE & MARINEKeppel Offshore & Marine (Keppel O&M) has a net orderbook year-to-date which stands at $11.0 billion, which is keeping our yards busy through to 2020.

Year to date, Keppel O&M secured $1.5 billion worth of new contracts. Just yesterday, Keppel Shipyard signed a US$684 million contract with Golar for a Floating Liquefied Natural Gas (FLNG) conversion, which is the third of such won by Keppel.

We continue to focus on executing our projects well, ensuring safe, on-time and on-budget deliveries to our customers. Amongst 12 major projects completed in the first half, apart from the five jackup rigs, the other noteworthy deliveries were for the fourth high-specification accommodation s e m i s u b m e r s i b l e t o Floatel International, and a Depletion Compression

Continues on page 6...

6 Sustaining Growth


Platform to Shell by Keppel Subic Shipyard, our satellite yard in the Philippines.

Of the ten jackups we will deliver in the second half, five KFELS B Class jackup rigs will be handed over to Mexican customer, Grupo R. We have reaped synergies working on five rigs at one time, optimising resources and improving efficiencies in the process.

Keppel FELS will soon deliver five KFELS B Class drilling rigs to Grupo R

BrasFELS continues to make good progress on the DSSTM

38E drilling semisubmersibles for Sete Brasil. The first three units are 90%, 63% and 36% completed.

B e s i d e s t h e s i x semisubmersibles, BrasFELS is also working on the module fabrication and integration for two Floating Production Storage and Offloading (FPSO) units P-66

and P-69 for Petrobras, as well as the repair of the drill ing semisubmersible ENSCO 6002.

With the current low oil prices, we are l ikely to see an acceleration in the replacement cycle for aging rigs. Days are numbered for many old rigs. It is estimated that about 94 jackups and 27 floaters a round the wor ld a re

more than 30 years old. The scrapping of old rigs will hasten a rebalance of demand and supply in the offshore market and sow the seeds for the upturn.

It has also been estimated that some 238 projects in the appraisal, planning, or bidding/final design stages wor ldwide potent ia l l y require a floating production/ storage system.

...continued from page 5.


Sustaining Growth 7

Our es tab l i shed t rack record of having completed over a hundred complex FPSO, Floating Storage Offloading and Floating Storage Regasification Units conversion projects, coupled with a growing pool of in-house FLNG expertise, puts us in good stead to offer quality solutions to some of the challenges faced by the offshore LNG industry.

The global FLNG industry i s expected to at t ract more than US$65 billion of investments from now through to 2020, driven by rising costs of onshore LNG terminals. Asia-Pacific, in particular, is expected to draw a major i ty of investments in the FLNG sector with its sizeable line-up of regasification and liquefaction projects. Our gas strategy and suite of products for the offshore gas industry will provide some cushion to the current weak demand for drilling rigs.

Even as we await the upturn in the drilling market, we are not rest ing on our laurels. From 2010 to the present, we have secured $11.2 bi l l ion worth of contracts for non-drilling solutions and services. This marks a 64% increase over the preceding five-year period from 2005-2009.

Our expanding suite of innovative solutions will put us in pole position to capture more work in the non-

drilling markets, which up till now remain resilient as proven by our order wins year-to-date.

PROPERTYI will now update on our Property business. With the complet ion of the privatisation exercise, Keppel Corporation now owns over 99% of Keppel Land which was delisted from the Singapore Exchange on 16 July 2015.

The full ownership of the division will also give us the ability to right-size the balance sheet of the property business in response to opportunities, and allocate resources across the Group for optimal returns. Keppel Land will provide a strong pillar for earnings and long-term value creation for the Group.

To meet housing needs in the region arising from a fast expanding middle class and a high urbanisation rate, Keppel Land has a pipeline of over 18,000 launch-ready units.

In 1H 2015, Keppel Land sold over 1,800 homes, which is more than the 1,300 units sold in 1H 2014. In China alone, Keppel Land sold about 1,170 homes in 1H 2015, c o m p a r e d t o a b o u t 1,060 sold in 1H 2014. This improvement was underpinned by the relaxing of cooling measures by the Chinese government since 1Q 2015. Continues on page 8...

When fully completed, Saigon Centre Phase 2 will feature about 50,000 sm of prime retail area spread over five floors, a 37-storey office tower offering about 40,000 sm of Grade A office space and about 200 luxury serviced apartments

8 Sustaining Growth


Over in Indonesia, specifically in Jakarta where we are focused, the residential market continued to record modest absorption amidst poor market sentiments that have been affected by lower GDP growth and depreciation of the Rupiah. However, the mid-to- long-term prospects for the residential market remain positive, supported by urbanisation trends and an expanding middle class. We are positioned to meet demand for quality homes with our West Vista project in West Jakarta.

In Ho Chi Minh City, Vietnam, the completion of major ring

roads and the introduction of a metro system wil l improve accessibility and have a positive impact on surrounding property values. The recent amendments to the foreign-ownership law, which came into effect in July, will boost housing demand. With improving market conditions, we sold about 450 homes from our Estella Heights and Riviera Point condominium projects in Ho Chi Minh City, compared to about 100 units the previous year.

Seizing opportunities in a softening market, Keppel L a n d i s r e - i n v e s t i n g $430 million to develop

new residential projects in Chengdu and Jakarta.

At the same time, Keppel Land continues to strengthen its commercial portfolio and expertise, with an overseas portfolio under development totalling about 840,000 sm in gross floor area. Array Real Estate, which Keppel Land acquired a major stake in December last year, has been renamed Keppel Land Retail Management and is collaborating with our various country teams to actively explore retail-related opportunities in our core and growth markets.

Targeted for opening next

year is the retail component of Saigon Centre Phase 2 in Ho Chi Minh City, which is now more than 70% pre-committed, led by anchor tenant Takashimaya.

Across the globe, Keppel Land had in 1H 2015 reinvested $186 million in a refurbished office building in London.

INFRASTRUCTUREThe recent developments in our Infrastructure Division demonstrate Keppel’s serious commitment to grow this third leg of business.

Even as we nurture green shoots in our Infrastructure

Keppel Data Centres Holding Pte Ltd (KDCH) announced plans to develop its fourth data centre, which is strategically located in close proximity to existing data centres operated by KDCH at Tampines (pictured) in Singapore



Sustaining Growth 9

Division, we are committed to complete the complex Engineering, Procurement and Construction (EPC) projects . I am pleased to update that we have successfully handed over both phases of the Greater Manchester Energy-from-Waste Plant.

Meanwhile, Doha North Sewage Treatment Works wil l achieve s ignif icant completion this year. I am disappointed that in spite of our best efforts, we had to take additional losses on th i s pro ject in the second quarter due to delays and cost overruns. We believe that this will be t h e f i n a l r o u n d o f adjustments.

With the formation of a n e n l a r g e d K e p p e l Infrastructure Trust (KIT), through the combination of CitySpring Infrastructure Trust and KIT as well as the acquisition of a 51% stake in Keppel Merlimau Cogen (KMC), we created the largest Singapore infrastructure-focused business trust.

To fund the acquisition of KMC, KIT successfully raised $525 million through a private placement and preferential offering, which is the largest equity deal to date in Singapore this year. With the KMC acquisition, KIT has a total asset size of over $4 billion.

T o d a y , K e p p e l

Te lecommunicat ions & Transportation (Keppel T&T) announced plans to develop its fourth data centre in Singapore. The greenfield data centre development, Keppel’s second largest in Singapore, is strategically located in close proximity to our existing facilities in Tampines. We are confident that this latest faci l i ty will be able to meet our customers’ requirements for high-availability data centre space. Meanwhile, Almere 2, Keppel T&T’s purpose-built data centre facility in the Netherlands, will commence operations later in the third quarter this year.

Just five months after its l isting, Keppel DC REIT

acquired Intell icentre 2 from Macquarie Telecom, strategically located in a research and business park in Sydney that specialises in the communications and information technology sectors. The acquisition builds on Keppel DC REIT’s established track record in Sydney and places it in good stead to tap the market’s growth potential.

Keppel T&T is expecting to kickstart operations of several of its logistics projects in China and V ietnam this year and we expect progressive contributions from these regional projects as they come on stream.


Built by Keppel Seghers, the Runcorn Energy-from-Waste facility is able to process up to 850,000 tonnes of refuse-derived fuel per annum

10 Sustaining Growth


INVESTMENTSBack in 2012, Keppel took an interest in KrisEnergy, an independent upstream oil and gas company, because we believe in its long-term growth potential and that it could offer sustainable returns over the long run. Recently, KrisEnergy announced that o i l p r o d u c t i o n h a s commenced in the Nong Yao field in the Gulf of Thailand, the first development project in its portfolio to be brought on stream.

To support KrisEnergy in its efforts to finance upcoming projects, Keppel has recently undertaken to subscribe for its full entitlement, which is about 31.3% of the rights issue by KrisEnergy to raise $169.5 million. Keppel will act as sub-underwriter for all the underwritten rights shares. In the event that Keppel is

KrisEnergy saw first oil at Nong Yao field, the first development project in its portfolio to be brought on stream, in Gulf of Thailand

With a long-term view on its potential, Ocean Mineral Singapore entered into a 15-year exploration contract for polymetallic nodules at a site within the Clarion-Clipperton Fracture Zone of the Pacific Ocean with the International Seabed Authority

required to sub-underwrite all the sub-underwritten shares, Keppel’s interest in KrisEnergy will not exceed 50.0%.

With a long-term view on its potential, Ocean Mineral S ingapore (OMS) was established, together with

UK Seabed Resources, a wholly-owned subsidiary of London-based Lockheed Martin UK Holdings and



Sustaining Growth 11

Lion City Capital Partners, to leverage Keppel’s experience in the offshore and marine sector.

Recently, OMS entered into a 15-year exploration contract for polymetallic nodules at a 58,000 square-kilometre site within the Clarion-Clipperton Fracture Zone of the Pacific Ocean with the International Seabed Authority.

S p o n s o r e d b y t h e Government of Singapore, OMS is the first Singaporean company to be awarded an exploration contract for polymetallic nodules.

RECURRING INCOMEAs we move into the future, we aim not only to develop the engines of growth in our key businesses, but also reinforce the pillars that will continue to support Keppel’s expansion, even when conditions are rough.

Recurring income currently contributes $170 million or about 22% of the Group’s total net profit for 1H 2015. We aim to continue to grow this to improve the quality of our earnings.

In the Offshore & Marine

As we move into the future, we aim not only to develop the engines of growth in our key businesses, but also reinforce the pillars that will continue to support Keppel’s expansion, even when conditions are rough.Mr Loh Chin HuaCEOKeppel Corporation

Division, we will continue to invest in Research & Development to come up with technology that can be commercialised in the near term, as well as better processes to raise the skillsets and productivity of our yards. Keppel O&M will continue to pursue its build and grow strategy by exploring potential partnerships with customers in niche markets that require solutions such as floating accommodation, Floating LNG, and Plug and Abandonment, all of which will enable it to create sustainable income streams to augment its lumpier turnkey contracts.

O u r P r o p e r t y a n d Infrastructure Divis ions will continue to fuel the growth of their respective fund management units by developing a stable pipeline of quality assets for injection, while earning recurring fees through operations and maintenance as well as facilities management.

A sturdy and sizeable recurring income base will enable Keppel to maintain earnings visibility and a strong foundation for earnings growth.

CONFIGURED TO GROW

Through 47 years since incorporation, Keppel has grown stronger from every downturn and has been able to continuously integrate and streamline its business units to create value.

I will wrap up by sharing K e p p e l ’s c o r p o r a t e milestones over the last fifteen years to illustrate my point.

In early 2000s, shortly after the Asian financial crisis, we consolidated and sold our banking and finance arm. With proceeds from the divestment, in the wake of September 11, we integrated our shipyard operations to form Keppel O&M, which resulted in over a decade of unprecedented growth.

Keppel O&M is a prime example of the success that we were able to achieve by taking our offshore and marine businesses private. W ith the f lex ib i l i ty to assign capital, talents and projects across subsidiaries, we have been able to fully harness our Near Market, Near Customer strategy to capture value worldwide.

More recent ly, we re-

organised the Infrastructure Division and formed Keppel Infrastructure, with a focus on energy. We are growing Keppel Infrastructure Trust into a sizeable vehicle for Keppel Infrastructure to unlock value from mature assets and reinvest capital in new projects for higher returns. The same is being done with Keppel DC REIT.

Finally, with Keppel Land privatised, it will enable us to deploy capital across our businesses more effectively and our Property Division can focus on generating stronger returns.

These are gears that we have set in mot ion to propel Keppel into its next phase of growth. We have a strong track record of agility and turning adversity into advantage. Our multi-business approach will help us weather the storm and emerge stronger. There will also be opportunities along the way. We will certainly not waste this downturn. keppelite



Staying resilientKeppelite reproduces excerpts of the speech by Mr Chan Hon Chew, CFO of Keppel Corporation, at the 2Q & 1H 2015 results press and analyst conference.

The Group recorded a net profit of $397 million this quarter, which was 2% below the same quarter last year. Earnings per Share (EPS) correspondingly decreased by 2% to 21.9 cents , while Economic Valued Added (EVA) was lower at $122 million.

The free cash outflow of $542 million for this quarter is higher compared to the $390 million outflow in 2Q 2014. This is mainly due to lower operational cash inflow.

We exclude expansionary acquisitions and capex, and major divestments in our free cash flow statement; for instance, the cash inflow of $952 million from the divestment of the 51% interest in Keppel Merlimau Cogen during the quarter is excluded.

2Q 2015

FINANCIAL HIGHLIGHTS The Group’s revenue for the second quarter dropped by 19% or $614 million from the same quarter last year. All divisions except the Property Division recorded lower revenues dur ing the quarter.

O p e r a t i n g p r o f i t a t $414 million saw a decline

of 11% or $53 million as compared to 2Q 2014. This was mainly due to lower profits from the Offshore & Marine and Investments Divisions which were partially offset by higher profits from Property and Infrastructure.

Profit before tax decreased at a higher rate of 16% or $95 million, due to higher net interest expense and lower contributions from associated companies such as The Botanica in Chengdu and Marina Bay Financial Center Tower 3.

After tax and non-controlling interests, the drop in net profit narrowed to 2% or $9 million as a result of lower tax expenses and non-controlling interests. Tax expenses were lower because of lower taxable profits while reduced non-controlling interests was the result of the acquisition of

S$m 2Q 2015 2Q 2014 % Change 1H 2015 1H 2014 % Change

Revenue 2,563 3,177 (19) 5,377 6,173 (13)

Operating Profit 414 467 (11) 812 882 (8)

Profit before Tax 498 593 (16) 953 1,085 (12)

Net Profit 397 406 (2) 757 745 2

EPS (cents) 21.9 22.3 (2) 41.7 41.0 2

KEPPEL CORPORATION’S FINANCIAL HIGHLIGHTS

Mr Chan Hon Chew, CFO of Keppel Corporation, elaborated on the Group’s financial performance at the results briefing



additional shareholding in Keppel Land.

SEGMENTAL REVIEWOverall, the Group’s revenue was 19% lower than the same quarter last year, driven largely by the decline in the Offshore & Marine Division as a result of lower volume of work and deferment of some projects.

This was partially offset b y a 24% g rowth i n Property revenue, primarily due to higher revenues from residential projects in China like Eight Park Av e n u e a n d S e a s o n s Residences in Shanghai and Park Avenue Heights in Chengdu.

Infrastructure’s 28% drop in revenue was mainly due to lower revenue from the power and gas business as a result of lower prices

and volume, as well as the absence of revenue from Keppel FMO Pte Ltd, which was divested in 4Q 2014.

The Offshore & Marine Division’s pre-tax profit was 36% or $124 million lower due to lower revenues at lower operating margins, lower contribution from associated companies and lower net interest income. The Division’s operating margin for the quarter was 13% compared to 14.6% in the same quarter last year.

The Property Div is ion’s pre-tax profit was slightly lower by 5% despite higher revenues, due mainly to higher net interest expenses and lower contribution from associated companies like The Botanica in Chengdu and Marina Bay Financial Center Tower 3. Continues on page 14...

The Infrastructure Division reported a $67 million increase in pre-tax earnings from the same period last year despite a 28% drop in revenues. This was driven by the gain from divestment of the 51% interest in Keppel Merlimau Cogen and the combination of Keppel Infrastructure Trust and CitySpring Infrastructure Trust, partially offset by losses following finalisation of the cost to complete the Doha North Sewage Treatment Plant.

The Investment Division’s pre-tax profit is lower this quarter, due mainly to write back of impairment of associated companies and higher sale of investments in the same quarter last year.

As a result, the overall Group pre-tax profit was 16% or $95 million lower than last year.

After tax and non-controlling interests, the drop in Group net profit was at a lower rate of 2% or $9 million. The Group benefited from reduced non-controlling interests as a result of the increase in shareholding in Keppel Land.

This reduct ion in non-controlling interest helped to increase the Property Division’s net profit by 75% or $50 million.

1H 2015

FINANCIAL HIGHLIGHTSNet profit for the first half of 2015 was $757 million, up 2% from the same period last year.

EPS also increased by the same extent to 41.7 cents. Annualised Return on Equity (ROE) declined to 13.1% while EVA was lower at $225 million, due mainly to lower net operating profit after tax.

Free cash outflow decreased from $781 million in 1H 2014 to $316 million. This is due to lower increases in working capital.

Our net gearing increased from 11% in 1H 2014 to 42% this year, mainly due to funds used for the acquisition of additional shareholding in Keppel Land, partially offset by proceeds from the disposal of 51% of Keppel Merlimau Cogen plant.



We are pleased to announce an interim cash dividend of 12.0 cents per share for this half year.

The Group recorded a 13% or $796 million decrease in revenue to $5.4 billion, largely due to lower revenue from the Offshore & Marine and Infrastructure divisions.

Operating profit decreased by a lesser extent to $812 million, an 8% or $70 million decrease from 1H 2014. The decrease is led by lower revenues from Offshore & Marine and Infrastructure d i v i s i o n s , a n d l o s s e s following finalisation of the cost to complete the Doha North Sewage Treatment Plant, partially offset by gains from divestment of Keppel Merlimau Cogen and the combination of Keppel Infrastructure Trust

and CitySpring Infrastructure Trust.

Pre-tax profit dropped 12% compared to the 8% decrease in operating profit, due to higher net interest expense and lower contributions from associated companies compared to the same period last year.

After tax and non-controlling interests, net profit was higher by 2% or $12 million despite lower pre-tax profit as a result of lower tax expenses and non-controlling interests in Keppel Land.

SEGMENTAL REVIEWThe Group earned total revenues of $5.4 billion in 1H 2015, 13% lower than the same period last year. The decrease was mainly driven by lower revenues from Offshore & Marine and

Infrastructure, partially offset by higher revenues from Property and Investments.

In the Offshore & Marine d i v i s i o n , m a j o r j o b s completed to date this year include five jackup rigs, an accommodation semi, one depletion compression platform, one floating crane and a floating, production storage and off loading integration.

Property revenue increased by 12% as compared to 1H 2014, led by higher revenue from residential projects in China.

L o w e r r e v e n u e f o r Infrastructure was attributed mainly to decreases in revenue from the power generation business as well as the absence of revenue from Keppel FMO Pte Ltd,

which was disposed in 4Q 2014.

L o w e r r e v e n u e s a n d operating margin resulted in Offshore & Marine reporting a 27% decrease in pre-tax profit for the first half of the year. The division also recorded lower net interest income and contribution from associated companies. Offshore & Marine operating margin for the first six months was 12.5%, compared to 14.4% in the same period last year.

Despite higher revenues, the Property Division registered a 13% decrease in pre-tax profits mainly as a result of higher net interest expense and lower contribution from associated companies.

Infrastructure’s pre-tax profit was higher by 58% for the first half of 2015, led by gains from divestment of Keppel Merlimau Cogen and the combination of Keppel Infrastructure Trust and CitySpring Infrastructure Trust. Partially offsetting this increase were losses recognised for the Doha North Sewage Treatment project and the reduced contribution from the power and gas business.

The Investment Division’s pre-tax profit increased by $27 million, mainly due to higher profits from the sale of investments.

The increase in pre-tax profit from the Infrastructure and




Investment Divisions partially offset the decrease in pre-tax profit of the Offshore & Marine and Property Divisions, resulting in an overall 12% or $132 million decrease in Group pre-tax profit to $953 million.

Despite a lower Group pre-tax profit, the overall net profit after tax and non-controlling interests was 2% or $12 million higher than the same period last year. As we explained before, this was due to lower tax expenses and reduced non-controlling interests in Keppel Land.

At $757 million, the net profit for 1H 2015 is higher than the same period last year. If I may say so, this is a creditable performance despite a weak economic

environment and low oil prices.

Annualised ROE decreased to 13.1% in 2015. ROE of 18.8% for financial year 2014 included revaluation gains from investment properties which would be assessed only at each year end.

Our p roposed in te r im dividend to our shareholders for this per iod wi l l be 12.0 cents per share. This represents a pay-out ratio of 29% of our profit for the first half.

FREE CASH FLOWIn 1H 2015, the Group generated $637 million of cash flow from operations.

After accounting for working capital requirements mainly

OUTLOOKI n the face of s t rong headwinds, the Group l e v e r a g e s o u r c o r e competencies and expertise to tackle the challenges and remain competitive amidst the changes in macro-economic conditions.

The Group will continue to invest in the future through constant innovat ion in technologies and solutions. This is so that we may maintain our resilience and agility in a fast changing environment, and thus remain poised to seize any new opportunities to deliver sustainable growth and create value for our shareholders and customers in the long run. keppelite

from the Offshore & Marine and Property d iv i s ions and proceeds from sale of investments, operating cash outflow for the six months was $272 million, compared to an outflow of $642 million in the same period last year.

Net cash used in investing act iv i t ies amounted to $44 million, comprising divestment and dividend income from associated companies of $164 million, as wel l as investments and operational capital expenditure amounting to $208 million, mainly from the Offshore & Marine division.

The resultant cash outflow was $316 million for the first half of this year, which is $465 million lower than 2014.

The divestment of a 51% stake in KMC has unlocked cash of almost $1 billion for the Group, a prime example of our capital recycling strategy



Engaging stakeholdersKeppelite shares highlights of the 2Q & 1H 2015 results Question and Answer session, where senior management took questions from the investment community.

Q: Have there been any change to the delivery dates for the six semis for Sete Brasil? Would you consider financing the construction of some of the rigs if asked to?CYY: We have been in discussion with Sete on the new delivery dates, while continuing to work at a slower pace. The rig deliveries will probably be shifted by less than ten months.

LCH: We are discussing with Sete on how best to finance the fifth and sixth rigs. We have to look carefully at this and make sure that any changes in terms make sense for both sides.

Q: Ten jackups will be delivered in the second half of 2015. As a number of them have not been chartered, do you expect your customers to defer these projects? CYY: The shift in deliveries

Senior management engaged with media, analysts and investors at the results conference and over the web

that were announced in the early part of this year has been taken into account. The 10 rigs due for delivery this year are progressing on time and on budget. There have been no requests for further delays.

Q: Looking ahead, what does the runway with Golar on FLNG contracts look like?LCH: The key thing is – FLNG is a growth market and investments are still expected to go into this area. With

three FLNG conversions, we are a first mover with Golar and other partners, and we hope to do more in this area.

C Y Y: T h e f i r s t F L N G conversion for Golar, the HILLI, is doing quite well, and I am pleased to inform that we are on budget and on schedule. We have some very active enquires from parties other than Golar, so it suffices to say that we are quite optimistic about that segment of our business.



Q: Will we see a sharp decline in the Offshore & Marine Division’s revenue next year?CYY: We have to look at all three businesses in the Offshore & Marine Division. In the Offshore Division, we wi l l be qui te busy delivering 15 rigs this year. Next year, we will have about eight rig deliveries, and about six in the year after. In the meantime, we are also busy with a lot of rig repairs.

For Keppel Shipyard, even though there has been a slowdown in FPSO contracts, the t rend shows tha t these may be coming back. On top of that, there are the

FLNG conversion projects that we are working on right now.

Keppe l S i ngmar i ne i s actually hiring more people because revenue f rom its part of the business is expected to grow by more than 60% from the previous year.

Q: Is there a target for cost savings in the Offshore & Marine business?CYY: While we do not have a f igure, I would l ike to emphasise that we are not resting on our laure ls . We have been doing some trimming as well as executing a lot of

productivity improvements and investing in Research & Development (R&D) to optimise operations. I have said before that we must not waste this crisis, and this is exactly what we are trying to do.

LCH: We are doing what I call value engineering, which is not just cutting costs across the board. We are still investing in R&D and training, and improving on our productivity. Certainly, there are areas where we can tighten up. Mainly, we want to ensure that our overheads are well under control and that we are prepared if market conditions get tougher.

Q: Some analysts report that this slump resembles that of 1985. What is your take on it and the rig building industry?CYY: Personally, I have gone through four cycles. I think it is too early to say as there are so many factors. Like what Chin Hua has said, we have had a good ten-year run. We will take this time to consolidate. I’m quite sure the market will come back up again. After every downturn, Keppel has always come up stronger. We will take this opportunity to strengthen our operations and businesses to get ready for the upturn.

The first FLNG conversion for Golar, the HILLI is progressing on schedule and on budget




Q: On property, could you clarify the basis for the $18 million savings on interest expense in the Keppel Land privatisation? Does this take into consideration the $3 billion that you would have paid to Keppel Land shareholders?LCH: The $18 mi l l ion interest savings refers to the existing loan book from Keppel Land.

If we were to refinance Keppel Land’s loans based on Keppel Corp’s credits, that wil l lead to about $18 mi l l ion sav ings in interest a year.

Some of the funds used to

privatise Keppel Land were actually from cash in our balance sheet. When we use the cash, our net gearing will go up over time. All the interest has already been factored into the numbers that you see.

Q: China has constituted about 63% of residential sales so far, do you see that ratio changing in the future? What is your view of the Chinese residential market?AWG: We a re qu i t e positive about the Chinese residential market in the coming one to two years.

We see the market recovering with the government’s lifting of cooling measures.

Mr Chow Yew Yuen (left), CEO of Keppel Offshore & Marine, spoke with analysts at the 2Q & 1H2015 results briefing and shared about the offshore and marine business

In the banking sector, w e h a v e s e e n t h e government cut interest rates three times this year, thus lowering the bank reserve ratio.

I n C h i n a , t h e r e ’ s t h e p h e n o m e n o n o f urbanisation and a growing midd le income group. There’s a fundamental need for housing.

In the las t few years , the market was s lower and that created pent-up demand. So we see demand com ing back and the proport ion of cont r ibut ion f rom our Chinese residential business growing in the next few years.

Q: It seems that for the second quarter, the Infrastructure Division registered a loss of close to $160 million. Could you elaborate on the finalisation cost for the work in Doha North?CHC: In the second quarter, the Infrastructure Division’s net profit was higher by $67 million. That comprised a number of lumpy items. During the quarter, we divested a 51% interest in Keppel Merlimau Cogen to Keppel Infrastructure Trust (KIT) which provided a gain of $202 million.

The combination of KIT with CitySpring also resulted in a gain of over $60 million. So in total, it was about




$260 million of gains arising from these two related transactions.

This was partially offset by additional losses that we have taken as a result of the finalisation of costs to complete Doha North which was roughly under $200 million. We believe that this should be the final round of adjustments we will need to make for the Doha North project.

Q: Could you provide some sense on how the electricity side of your infrastructure business performed in the second quarter, and also the outlook? OTG: Although we divested 51% of KMC, it doesn’t mean that we are out of the generation business.

We continue to be involved in the commercial part of the generation business as well as in the gas business, which gives us power integration. We plan to continue to grow these businesses.

I n S i ngapo re , ma rg in compression is showing up quite fast and business m a r g i n s w i l l r e m a i n

challenged over the next few quarters.

Particularly in 2016, I think the pressure will be higher. As for 2015, we are still managing it quite well.

Q: Could you elaborate more on the deep sea mining venture? How much is the estimated investment, and what is the time frame?LCH: The time frame is expected to be quite long. This is a very exciting project for Keppel. Besides the actual investment in this, we are also looking to develop new technologies with Ocean Mineral Singapore that can allow us to do this on a sustainable basis.

O n t h e e s t i m a t e d investment, we are taking it one step at a time. It doesn’t mean that we will have to fund everything ourselves.

Over time, we can also p a r t n e r o t h e r s . A t Keppel, we are always disciplined when looking at investments and the risks. We will be careful to make sure that the sums make sense every step of the way.

Keppel has always come up stronger. We will take this opportunity to strengthen our operations and businesses to get ready for the upturn.Mr Chow Yew YuenCEOKeppel Offshore & Marine

Q: Is Keppel’s dividend payout based on total reported profits including the gains on Keppel Merlimau Cogen, or would you be looking at project-based profits?LCH: I think the key here is t h a t w e l o o k a t o u r R e v a l u a t i o n s , M a j o r I m p a i r m e n t s a n d Divestments as part and parcel of our earnings, so it is available to us for funding dividend payouts.

Q: Do you expect Keppel Corporation’s gearing to normalise at current levels of 0.4 to 0.5 times?CHC: For gearing, it’s not meaningful to look at a single point or a narrow band of 40% to 50%. As we allocate capital in the Group, we want to make sure that we don’t over extend our balance sheet. That’s an important operating pr inc ipa l . We want to maintain an institutional-quality balance sheet. keppelite

LCH - Mr Loh Chin Hua,

CEO of Keppel Corporation

CHC – Mr Chan Hon Chew,

CFO of Keppel Corporation

CYY – Mr Chow Yew Yuen,

CEO of Keppel Offshore &

Marine

AWG – Mr Ang Wee Gee,

CEO of Keppel Land

OTG – Dr Ong Tiong Guan,

CEO of Keppel Infrastructure



Topping off Jakarta’s most prestigious business address

Keppel Land celebrated the topping off of International Financial Centre Jakarta Tower Two, a landmark commercial development in the central business district of Jakarta, Indonesia, in a ceremony on 18 August 2015.

The ceremony was witnessed by more than 150 guests, including Guest-of-Honour Mr Franky Sibarani, Chairman of Indonesia Investment Coordinating Board; H.E. Mr Ani l Kumar Nayar, Singapore Ambassador to the Republic of Indonesia;

Ms Meri Ernahani, Assistant Deputy Governor of Jakarta for Industry, Trade and Transportation, as well as the Board of Directors and senior management of Keppel Land.

Speaking at the ceremony, Mr Loh Chin Hua, CEO of Keppel Corporation and Chairman of Keppel Land, said, “Indonesia is one of Keppel Land’s key growth markets where we wil l continue to build up our presence. International Financial Centre Jakarta

Topping off International Financial Centre Jakarta Tower Two were (from left): Mr Kim Kyung-Jun, Senior Executive Vice President, Samsung C&T Corporation; Mr Ang Wee Gee, CEO of Keppel Land; H.E. Mr Anil Kumar Nayar, Singapore’s Ambassador to the Republic of Indonesia; Guest-of-Honour Mr Franky Sibarani, Chairman of Indonesia Investment Coordinating Board; Mr Loh Chin Hua, CEO of Keppel Corporation and Chairman of Keppel Land; and Ms Meri Ernahani, Assistant Deputy Governor of Jakarta for Industry, Trade and Transportation

Tower Two wil l further strengthen Keppel Land’s sterling commercial portfolio in Asia as it moves ahead towards completion.

“Indonesia continues to attract a steady flow of foreign direct investments, with financial institutions and businesses investing and expanding their presence in the country. This will underpin the demand for prime Grade A office space.

“We are confident that the s t ra teg ic loca t ion

and premium quality of Internat iona l F inanc ia l Centre Jakarta Tower Two wi l l meet the growing needs of multinational and local corporations seeking a prestigious address in Jakarta’s central business district.”

Mr Nayar said, “International Financial Centre Jakarta Tower Two represents a flagship building that would be a key part of Jakarta’s skyline and integrated with Jakarta’s upcoming public transport projects.”



Ahead of its completion in the f i rst quarter of 2016, tenants secured for International Financial Centre Jakarta Tower Two include Servcorp, Tokio Marine, Grant Thornton, Rintis and Ithaca Resources.

Internat iona l F inanc ia l Centre Jakarta is strategically located along Jalan Jenderal Sudirman within the city’s golden triangle zone and enjoys excellent accessibility via key transport routes, such as the Transjakarta busway and future Jakarta mass rapid transit. Designed by leading global architecture and design firm, NBBJ, the 48-storey state-of-the-art Tower Two will offer 5 0 , 2 0 0 s m o f p r i m e

Grade A o ff i ce space when completed.

Keppel Land will also be redeveloping the existing 18-storey Tower One, which was completed in 1985, into a 55-storey office tower that will more than double its net leasable area to approximately 72,800 sm.

International Financial Centre Jakarta Tower Two is the first project in Indonesia to be conferred the highest Green Mark Platinum Award by the Building and Construction Authority of Singapore (BCA). Incorporating the latest innovative green technology, some of the sustainable features of the office tower include the

Mr Jonathan Wall (extreme left), Director, NBBJ, highlights key features of International Financial Centre Jakarta Tower Two to (from right): Mr Ang Wee Gee, CEO of Keppel Land; Ms Meri Ernahani, Assistant Deputy Governor of Jakarta for Industry, Trade and Transportation; Mr Loh Chin Hua, CEO of Keppel Corporation and Chairman of Keppel Land; H.E. Mr Anil Kumar Nayar (in foreground), Singapore’s Ambassador to the Republic of Indonesia; Guest-of-Honour Mr Franky Sibarani (in orange shirt), Chairman of Indonesia Investment Coordinating Board; and Mr Sam Moon Thong, President (Indonesia) at Keppel Land

recycling of rainwater for irrigation, use of water- and energy-efficient fittings and double-glazed low emission glass. Keppel Land also aims to achieve BCA Green Mark Platinum Certification for the redeveloped International Financial Centre Jakarta Tower One.

Mr Nayar added, “The UN projects that Indonesia’s urbanisation rate will reach 71% in 2050, representing another 93 million urban inhabitants. The continued efforts by developers to invest in quality, affordable green-building solutions will be an important tool to mitigate the strain on water and energy resources. It will be a growing market

f o r I n d o n e s i a n a n d Singaporean companies to participate in.”

According to a recent report by the World Bank, Indonesia remains a favourable place to invest, and is one of the fastest growing countries in Asia. Jakarta’s population is predicted to grow from 10.2 million in 2014 to 12.5 million by 2030, while the population in Greater Jakarta is expected to grow from 30 million in 2014 to 35 million in 2020.

Internat iona l f inanc ia l services companies have also given positive assessments of Indonesia, with Standard & Poor’s upping Indonesia’s credit ratings in 2015. keppelite



Steady distributionsKeppel Infrastructure Trust (KIT), previously known as CitySpring Infrastructure Trust, has reported higher earnings attributable to unitholders in its financial results for the first quarter ended 30 June 2015 (1Q FY2016).

Net profit for 1Q FY2016 was $2.66 mi l l ion, an increase of 5.2% from $2.53 million in the corresponding 1Q FY2015.

This comes in spite of group revenue for the quarter coming in 14.2% lower than the corresponding period last year at $114.4 million, primarily due to lower town gas tariff arising from lower fuel cost and higher negative Commercial Risk Sharing Mechanism (CRSM) payment incurred by Basslink.

Cash gene ra ted f rom operating activities was $28.2 million for 1Q FY2016 compared to $21.3 million for 1Q FY2015. The higher cash generated was due to an increase in changes in working capital offset by higher tax payment and lower earnings.

K I T d e c l a r e d t h r e e Distributions Per Unit (DPU) for the quarter totalling 0.7835 cents: 0.25 cents declared for the period from 29 May 2015 to 30 June 2015; a stub DPU of

0.4235 cents from 1 April 2015 to 17 May 2015 – paid on 26 May 2015; and another stub DPU of 0.11 cents from 18 to 28 May 2015 – paid on 8 June 2015. A special DPU of 1.05 cents was also paid out by KIT on 8 June 2015.

Funds from operat ions was $22.2 mi l l ion for 1Q FY2016, compared to $25 mi l l ion for 1Q FY2015. This was due mainly to higher negative CRSM payment and higher interest incurred by Basslink, partially offset by contribution from the Crystal acquisition and lower maintenance capi ta l expendi ture at Basslink.

Earnings per unit dropped to 0 .11 cents for the quarter from 0.17 cents in the corresponding period last year, mainly due to a substantial increase in the unit base after KIT raised $525 mill ion through a private placement and a preferential offer to fund its purchase of a 51% stake in Keppel Merlimau Cogen (KMC) for $510 million in May 2015. KMC did not contribute to the trust’s 1Q FY2016 earnings because its purchase was only completed on 30 June 2015.

Net asset value per unit as at 30 June 2015 increased to 36.2 cents from 12.3 cents as at 31 March 2015. The

increase was due mainly to the Crystal and KMC acquisitions and mark-to-market gains of derivative instruments, which were partially offset by distributions paid.

Gearing as at 30 June 2015 was 37% compared to 52% as at 31 March 2015 due to lower gearing of the Crystal assets and KMC.

Meanwhi le on 28 Ju ly 2015, KIT held its f irst annual general meeting since acquiring the business undertakings and assets of Crystal Trust and completing the acquisition of a 51% stake in KMC. The event was attended by nearly 670 unitholders and proxies. keppelite

Keppel Infrastructure Trust completed the acquisition of a 51% stake in Keppel Merlimau Cogen on 30 June 2015



Safe and sound progressWith strong operational capabilities and expertise, Keppel Offshore & Marine (Keppel O&M) continues to make steady and safe progress on its projects in Brazil.

DELIVERY OF ENSCO 6002 C e l e b r a t i n g a n o t h e r s i gn i f i can t m i l e s tone , B r a s F E L S s u c c e s s f u l l y completed repair works on the semisubmersible drilling rig ENSCO 6002 for its long-time customer Ensco.

Mr Alex Oliveira, Project Manager of Ensco, thanked BrasFELS for its teamwork with Ensco. He noted that the companies’ shared commitment to safety, qua l i t y execut ion and problem-solving enabled the safe and successful on-time delivery of the project.

Mr Ron Couet, Director, Capital Projects, of Ensco, was p leased wi th the professionalism of Keppel a n d c o m m e n d e d t h e consistency of services at its shipyards around the world. Having worked with Keppel’s shipyards in Singapore, the US, Netherlands and Brazil, Mr Couet observed that at all these locations, there was strong mutual trust and understanding between the Keppel and Ensco teams.

H e a l s o n o t e d t h e efforts BrasFELS made

to continuously enhance its services, with lessons l ea r n t f rom BrasFELS ’ previous repair projects for Ensco, ENSCO 6001, applied to ENSCO 6002.

Keppel O&M and Ensco are long-standing partners, h a v i n g c o l l a b o r a t e d on numerous j a ckup , semisubmersible and drillship projects over the years.

SAFETY MILESTONESAttesting to its dedication to the safe and quality execution of its projects, BrasFELS achieved 2 million safe man-hours on Urca, a DSS™ 38E semisubmersible rig on 16 July 2015. As of 2Q 2015, the unit is more than 90% complete.

On 12 August 2015, the yard also celebrated more than

six million safe man-hours for FPSO P-66. The shipyard h a s s i n c e c o m p l e t e d its modules fabrication workscope, and has started commissioning works for the modules integrated.

Expressing his appreciation of Petrobras’ trust and

At the 6 million safe man-hours ceremony for the FPSO P-66 project, three of the project’s best workers received recognition for their exemplary behaviour

Marking another successful project between BrasFELS and Ensco are (from left) Mr Kwok Kai Choong, CEO and President of Keppel FELS Brasil; Mr Marlin Khiew, Vice President, Operations of BrasFELS; Airton Rodrigues, Assistant Operations Manager of BrasFELS; Alex Oliveira, Project Manager of Ensco; and Mr Ron Couet, Director, Capital Projects of Ensco

support, Mr Marlin Khiew, Vice President (Operations), said, “In our safety journey, we need the support of our customers and the supply chain. BrasFELS is thankful for the teamwork with the Petrobras team, and for the shared commitment to safety.” keppelite



Stellar repair for StenaThe strong track record of Keppel Verolme was a crucial factor in helping the yard secure a contract f rom repeat cus tomer Stena Drilling for the repair and upgrade of Stena Don, a harsh environment semisubmersible (semi).

The semi was docked in Keppel Verolme’s large dry-dock no. 7 on 12 August 2015, after the removal of its six thrusters at the deepwater location in the Port of Rotterdam.

Part of the yard’s work scope for the project involves a mid-life upgrade for the 14-year old vessel, which includes

maintenance and renewal of the drilling equipment and accommodation quarters. It will undergo its regular Special Periodic Survey (SPS) as well as thruster overhauls and a painting programme. Works are expected to b e c o m p l e t e d w i t h i n two months.

Mr Harold Linssen, MD of Keppel Verolme said, “We are glad to be able to support our customers in the region who regularly come back to us for maintenance and upgrade works. As the premier yard in the region, we have the capabilities to take on a variety of projects and offer value-

added services. Customers come back to us because our projects for all customers are well-executed on time, on budget and safely.”

Safety at the coreKeppel strives to uphold the highest safety standards at all of its yards around the globe. This commitment to safety was recently underscored with several milestones

celebrated in July 2015 at the Keppel AmFELS yard in Brownsville, Texas, USA.

The yard rece ived the American Equity Underwriters

(AEU) Safety and Health Award, given to members of the American Longshore Mutual Association (ALMA) for being the safest company in its industry for 2014.

The awards were presented at the ALMA Conference on 20 July, 2015 in Key Biscayne, Florida. Keppel AmFELS LLC has been a member of ALMA since 2003 and also received the same award in 2007 and 2009.

Another significant safety

The rig last vis ited the Keppel Verolme yard for dry-docking, inspection and maintenance in 2010. keppelite

milestone celebrated by the yard in July was the completion of 750,000 man-hours with zero lost-time incident during the construction of one of their current projects.

Together with clients, Keppel AmFELS helps to reinforce a vigilant safety culture among staff and subcontractors through activities such as weekly joint walk-around, safety briefings and safety awareness promotions as well as staff recognition for safety initiatives. keppelite

Keppel AmFELS’ safety achievement of 750,000 man-hours with zero lost-time incident on one of its projects was a result of the close partnership with customer and contractors

Repeat customer Stena Drilling entrusts its rigs, such as Stena Don, to Keppel Verolme for repairs and upgrades



Insights into ChinaMore than 60 leading international experts on China shared their views on the country’s trajectory at the FutureChina Global Forum 2015, held in Singapore from 20 to 21 July 2015. Keppel Corporation supported the event as a Gold Sponsor.

La s t yea r, Ch ina was Singapore’s top trading p a r t n e r a n d e x p o r t destination, while Singapore was China’s top foreign investor and fourth largest trading partner in Asia.

China is entering a phase marked by new challenges, with the Chinese government working to restructure its growth model to one driven more by innovation, high investment and domestic consumption. Against this backdrop, the sixth edition of the forum gave delegates an insider’s perspective on China. Speakers at the forum included Mr Tung Chee Hwa, the Vice Chairman of China’s 12th CPPCC National Committee who spoke on the challenges in navigating China’s “new normal”, and Singapore’s Prime Minister Lee Hsien Loong who spoke on the future of Singapore-China relations, potential projects with China, and the scope to expand and deepen bilateral ties further.

Keppel has a firm foothold in China, having led the

S ingapore consort iums of two landmark bilateral projects between the Chinese and Singapore governments – the China-Singapore Suzhou Industrial Park and the Sino-Singapore Tianjin Eco-City. Its businesses are also committed to the Chinese market.

Mr Ong Ye Kung, Director of Group Strategy & Development at Keppel Corporation was interviewed by Business China in a video programme that was widely publicised. He shared Keppel’s growth story and the company’s efforts to contribute to sustainable urbanisation in China.

From left: Mr Teo Eng Cheong, Chief Executive of IE Singapore; Mrs Josephine Teo, Senior Minister of State for Finance and Transport and Director of Business China; and Mr Goh Toh Sim, Chief Representative, China, of Keppel Corporation, were among the attendees at the FutureChina Global Forum, of which Keppel Corporation was a Gold Sponsor (Source: Business China)

He said, “Keppel has many capabilities including expertise in urban development, waste-to-energy technology, as well as offshore wind and clean energy technology. We can consolidate these capabilities and contribute to China in the process of sustainable urbanisation.” keppelite

Fuel for thoughtThe people who get on in this world are the people

who get up and look for the circumstances they

want, and, if they can’t find them, they make them.

George Bernard Shaw


26 Special Focus

Top honours at WSH Awards 2015

The Keppel Group clinched 35 Workplace Safety and Health (WSH) Awards on 29 July 2015, the highest number of awards won by a single organisation this year. Organised by the Workp lace Safety and Health Council (WSHC) and Singapore’s Ministry of Manpower (MOM), the annual awards recognise organisations and individuals who have contr ibuted to achieving excellence in workplace safety and health.

Of the 35 awards, Keppel Offshore & Marine (Keppel

O&M) bagged 31 awards under the Safety and Health Award Recognit ion for Projects (SHARP) category for its exemplary safety performance as well as good safety and health management systems.

Keppel Shipyard clinched the WSH Innovation Award for the Coupler Repair Workbench. The winning project team developed a jig to help lock a coupler in place, reducing workers’ physical contact with the coupler and impact wrench and thereby minimising risks of injury.

M r A y y a p e r u m a l Tamizharasan, Hull and Steel Outfitting Supervisor, Keppel Singmarine, was conferred the Supervisor Award for his exemplary performance in taking care of workers under his charge by improving workplace safety and health.

Fo r the i r s t rong WSH management sy s tems , Keppel DHCS and Keppel Singmarine garnered the WSH Performance (Silver) Awards. This is the fifth consecut i ve yea r tha t Keppel DHCS, a subsidiary of Keppel Infrastructure,

has clinched this award for its district cooling systems (DCS) plant operations and Engineering, Procurement and Construction project to provide DCS services to MediaCorp’s new campus at Mediapolis@one-north.

Mr R K Jaggi , General Manager, Group Health, Safety and Environment, Keppel Corporation, said, “At Keppel, safety is not only a top prior ity but more importantly a core value. Across all levels of the Company, we insti l the mindset that safety i s everyone’s bus iness

Keppel won big at the WSH Awards 2015, sweeping a total of 35 awards, the highest number won by a single organisation this year

27


27 27

Leading by example

Keppel’s WSH Awards in 2015

WSH SHARP AWARDS

KEPPEL FELS • B354 Cantarell I • B355 Cantarell II • B356 Cantarell III • B357 Cantarell IV • B358 TS Topaz• B359 ENSCO 110• B360 Paraiso I• B361 Paraiso II• B363 PV Drilling VI• B348 Floatel Endurance• B351 ARABDRILL 70• B364 Transocean Cassiopeia• B347 Maersk Integrator• B346 ENSCO 122• B349 YUNUEN• R373 ENSCO 5006• R383 HAKURYU-5• R388 Polar Pioneer

KEPPEL SHIPYARD • FPSO Armada Kraken• Armada Olombendo FPSO• NINGALOO VISION• FPSO Turritella• Ratu Nusantara• Tullow T.E.N External Turret• Turritella Turret• Gaza FSO (Sloug Replacement) Project

(Turret Fabrication)• FPSO Bertam• ARMADA STERLING II

KEPPEL SINGMARINE • H386 – Khankendi • DLV 2000• Bhagwan Dryden

WSH PERFORMANCE (SILVER) AWARDS • Keppel Singmarine • Keppel DHCS

WSH INNOVATION AWARDS FOR PROJECTS • Keppel Shipyard

– Coupler Repair Workbench

WSH AWARDS FOR SUPERVISORS• Keppel Singmarine

– Ayyaperumal Tamizharasan

and encourage everyone t o l o o k o u t f o r o n e another. Through various platforms such as training programmes, leadership courses, promotion of safety innovation, workshops, campa igns a s we l l a s feedback platforms, we strive to inculcate a robust safety culture at Keppel’s yards, projects, plants, warehouses and construction sites in Singapore and overseas.

“We are very encouraged by the WSHC’s recognition of our sustained safety efforts, which spurs us to continue to push forward in our quest for an incident-free workplace. Beyond awards and recognition from the

industry, our greatest reward is seeing everyone return home safely at the end of every work day.”

The Keppel Group has participated in the WSH Awards since it began in 2006. Other than the 35 awards garnered this year, the Group won 39 last year, the highest number of awards ever received by a single organisation, and 32 in 2013. keppelite

F o r h i s e x e m p l a r y performance in caring for workers under his charge by improving workplace safety, Mr Ayyaperumal Tamizharasan, Hull and Steel Outfitting Supervisor, Keppel Singmarine, was c o n f e r re d t h e W S H Supervisor Award.

W i t h 1 3 y e a r s o f experience in the offshore and mar ine industry, Ayyaperumal is well aware of the importance of maintaining one’s vigilance of workplace safety and health.

“At the start of each work

day, I gather my workers for a toolbox meeting where I run through the different safety areas that they should pay attention to. I understand what drives my workers and I try to connect with them on a personal level. They work hard to provide for their families so I emphasise the importance of maintaining a strong safety culture for everyone’s wellbeing.”

The supervisor of 18 workers also stressed the importance for all safety supervisors to plan in advance and communicate clearly with their workers.



Coming on boardKeppel continues to renew and strengthen its Boards across the Group, underscoring the company’s commitment to uphold strong corporate governance.

KEPPEL T&TKeppel Telecommunications & T r a n s p o r t a t i o n (Keppel T&T) strengthened its Board with the appointment of Mrs Lee Ai Ming as an independent, non-executive Director with effect from 1 August 2015.

Mrs Lee was a senior partner of the law firm, Rodyk & Davidson LLP before retiring on 30 December 2014. She continues to practice as a senior consultant for the law firm. She has practised law for more than 30 years in the areas of real estate, commercial litigation and intellectual property. Mrs Lee was appointed to the board of the Agri-Food & Veterinary Authority of Singapore on 1 April 2010.

She is also an independent Director, the Chairperson of the Nominating Committee, and a member of the Audit Committee of HTL Internat iona l Hold ings Limited.

With the appointment of Mrs Lee, the Board of Keppel T&T will have a total of 10 directors, of whom six are independent directors.

KEPPEL INFRASTRUCTURE FUND MANAGEMENTKeppel Infrastructure Fund Management (KIFM), as Tr u s t e e - M a n a g e r o f Keppel Infrastructure Trust (KIT), formerly known as CitySpring Infrastructure Trust (CIT), announced the appointment of Mr Mark Andrew Yeo Kah Chong and

Schroders and ABN AMRO, having led advisory teams in both public and private sector infrastructure projects, in sectors such as energy and resources, utilities and transportation across Asia, South America and Europe.

Mr Chinniah ret ired in September 2013 as the MD and Global Co-Head of Portfolio, Strategy and Risk Group with GIC Special Investments, the private equity arm of GIC Private Limited.

Mr Chinniah is presently a d i re c to r o f Chang i Airport International, the international subsidiary of Changi Airport Group. He sits on the boards of Edelweiss Financial Services Limited (EFSL), a l isted financial services company in India, as well as two EFSL subsidiaries – Edelweiss Capital (Singapore) Private L imited and Edelweiss Commod i t i e s Se r v i ce s Limited. He is a member of the Hindu Endowments Board, a statutory board under Singapore’s Ministry of Culture, Community and Youth.

With the appointment of Mr Yeo and Mr Chinniah, K I FM w i l l have e i gh t directors, of whom six are independent directors. keppelite

Mrs Lee Ai Ming Mr Mark Yeo Mr Kunnasagaran Chinniah

Mr Kunnasagaran Chinniah as independent directors with effect from 1 August 2015.

Mr Yeo and Mr Chinniah replaced Mr Paul Ma Kah Woh and Mr Alan Ow Soon Sian, who stepped down from the Board with effect from the abovementioned date as part of the board renewal process.

Mr Yeo is currently an adviser to Al Fahim Holdings LLC and is a director of IP Global Limited. Prior to that, he was MD of the privately held IMC Pan Asia Alliance.

Mr Yeo has ex tens i ve experience in project finance advisory and structured finance with banks including



Victorious in VietnamKeppel Land emerged as one of the big winners at the inaugural V ietnam Property Awards held on 14 August 2015 at the Intercontinental Asiana

Saigon Hotel in Ho Chi M i n h C i t y ( H C M C ) . The company’s Saigon Centre Phase Two development in District 2 of the city was named the winner for Best

Keppel Land was conferred a total of seven awards at the inaugural Vietnam Property Awards 2015. Receiving the awards was Mr Linson Lim (third from left), President, Keppel Land (Vietnam)

Golfing par excellenceSpring City Golf & Lake Resort in Kunming and Tianjin Eco-City International Country Club (ECICC), two properties under the wings of Keppel Land Hospitality Management, were lauded at China’s sixth Golfers’ Choice Awards organised by Golf Vacations magazine. The awards, held on 31 July 2015, celebrates the best of golfing in China.

Spring City Golf & Lake Resort was honored with the 2015 Top 10 Most Outstanding

Golf Resorts title for the fifth year running and 2015 Top 10 Most Outstanding Golf Courses.

ECICC was conferred the title of 2015 Top 10 Most Outstanding Golf Resorts for the first time.

Winners of the Golfers’ C h o i c e Aw a rd s w e re nominated by readers of Golf Vacations magazine and a judging committee comprising golfers from China and Hong Kong. keppelite

Mr Nick Zhao (right), Director of Sales and Marketing (Operations) of Kunming Spring City Golf & Lake Resort, received the title of 2015 Top 10 Most Outstanding Golf Courses award on the behalf of the resort from Mr Chen Chao Xing (left), President of China Forward Group

Commercial and Best Retail Development whi le i t s Riviera Point condominium in District 7 was named the Best Mid-range Condo Development in HCMC.

At the same time, Keppel Land received the Highly Commended Award for severa l deve lopments : Saigon Centre Phase Two for Best Office Development and Best Retail Architectural Design; Riviera Point for Best Residential Architectural Design; and Estella Heights for Best Luxury Condo Development in HCMC.

Keppel Land will go on to compete with regional peers in the grand finale at the fifth annual South East Asia Property Awards to be held in Singapore on 15 October 2015. keppelite



Strategic directionFaced with the challenges of a low oil price environment and uncertainty in the global economy, Keppel Offshore & Marine (Keppel O&M) and its respective business units have been busy strategising on improving efficiencies,

seizing opportunities, adding value, and increasing synergy within the Group.

These were some of the key topics discussed at the biannual Keppel O&M strategy meeting held on

4 and 5 August 2015. Senior executives from across the Group’s units around the world gathered to update on their respective regions, provide a market review as well as growth prospects, strategies and initiatives.

Kicking off the session, C h a i r m a n o f K e p p e l O&M and CEO of Keppel Corporation, Mr Loh Chin Hua emphasised the need to execute well and build on core strengths while keeping an eye on the future.

With Keppel O&M’s strong growth over the years and prudent investments, the company has the resources Keppel O&M’s strategy meeting was held over two days and drew participation from more

than 50 senior executives from around the world

to seize opportunities for g rowth and max im i se value during a downturn. Mr Chow Yew Yuen, CEO of Keppel O&M reiterated that “we must not waste a crisis”, whether it is improving processes, securing key equipment at a bargain or expanding into new geographical and product markets.

After two days of intense brainstorming, Mr Loh rounded off the session confident that despite the headwinds, Keppel O&M will be able to maintain its leadership position in the market and continue on its next lap of growth. keppelite

Launching the GiantKeppel Nantong marked a significant milestone on 2 August 2015 when it launched the submersible barge that the shipyard is building for Smit Shipping Singapore (Smit Shipping), a subsidiary of Royal Boskalis Westminster Group.

The barge was launched ahead of schedule, and is estimated to be ready for delivery by September this year.

To be named Giant 7 when

completed, the barge marks the third unit that Keppel Nantong has built for Smit Shipping. The first two

barges, Giant 5 and Giant 6, were delivered on budget, ahead of schedule and with perfect safety records on

20 December 2014 and 20 January 2015 respectively. keppelite

Management and project teams from Keppel Nantong and Boskalis celebrated the launch of submersible barge Giant 7



Guarding against threatsAs part of ongoing efforts to enhance the overal l operational preparedness across the Keppel Group, business units regularly hold exercises to review existing protocols and ensure the efficacy of their Business Continuity Plans (BCP).

KEPPEL CORPORATIONKeppel Corporation held a temperature-screening exercise on 2 July 2015 as part of its BCP to respond to the threat of infectious diseases. During the drill, all staff and external parties attempting to access Keppel Corporation offices and the Keppel Leadership Institute at Keppel Bay Tower were subjected to temperature checks before being allowed to proceed.

Decked out in full personal p rotect i ve equ ipment , Keppelites from the BCP W o r k i n g C o m m i t t e e screened a total of 215 participants over the course of the two-hour exercise.

KEPPEL OFFSHORE & MARINEKeppel Corporation’s Group Corporate Communications and Keppel Offshore & Marine’s (Keppel O&M) Human Resources organised a crisis communications workshop on 6 August 2015 to equip key local and overseas personnel with media management skills during a crisis.

T h e w o r k s h o p s a w participants, consist ing of five overseas business

unit heads and three local management, learning how to prepare media statements and honing their interview skills by participating in a variety of scenarios from live television interviews to press conferences.

KEPPEL INFRASTRUCTUREKeppe l I n f r a s t r u c tu re recently held a BCP exercise to famil iarise staff and management with protocol and procedures in the event of a pandemic. The exercise consisted of a table- top activity simulating an employee coming down with Middle East Respiratory Syndrome (MERS ) , an isolation drill, as well as a Crisis Management Team activation and work-from-home dri l l for selected

The Keppel Corporation Business Continuity Plan Working Committee screened a total of 215 participants over the course of the two-hour exercise

employees based at Keppel Bay Tower.

KEPPEL LANDKeppel Land’s headquarters at Bugis Junction Towers and Marina at Keppel Bay organ ised a pandemic exercise on 3 July 2015, s imulat ing S ingapore’s Ministry of Health raising the D i sease Outb reak Response System Condition level to ‘Yellow’ due to an outbreak of MERS. In the marina, staff set up temperature screening points at major entrances, while temperature checks were conducted on all staff, boaters and contractors on site as well as drivers and passengers of commercial v eh i c l e s en te r i ng the premises. keppelite



Spurring Innovations

labour costs and increased productivity.

“It does not cost too much to produce the automated welding carriage, which is lightweight and easy to use. We believe that going fully automated is the way to go in achieving consistent quality,” Khian Whatt explains.

For their efforts and innovative idea, the Bug ‘O’ project was one of the fifteen to be recognised under the ‘Productivity Gems’ category at the Keppel Group Innovation Convention held in June this year. keppelite

New kid on the welding blockDuring the vessel construction process , prefabr icated module blocks are first constructed at workshops before being transported to the dock or slipway to be lifted into place and joined by welding. Where two blocks are joined along a straight line, an automated machine can be employed to carry out the welding.

The automated process requires minimal handling by workers. It involves the welding machine or carriage travelling along rails parallel to the blocks, fusing them together in the process.

On the other hand, blocks with curved surfaces are more cha l leng ing and require manual free-hand welding. Depending on the experience of the welder and the sharpness of the curve, the quality of such welds can be inconsistent and may not measure up to automated welds . In some cases , re -we ld ing has to be carried out, delaying the production schedule.

To solve this problem, a team from the Hull and Quality Assurance department of Keppel Singmarine worked on adapting the automated welding system for curved

surfaces. Custom guide rails were developed that could be laid against all types of sur faces , inc lud ing curved ones.

N a m e d B u g ‘ O ’ , t h e prototype i s cur rent l y undergoing vigorous tests to ensure that the same level of welding quality can be consistently achieved. It has so far been used in less demanding tasks such as the joining of shell plate joints at the block construction stage.

Lee Khian Whatt, Assistant S e c t i o n M a n a g e r o f the Qual i ty Assurance

department at Keppe l Singmarine who led the project team, said, “We are excited about the prospects and benefits that Bug ‘O’ can bring. Not only can greater customer satisfaction be achieved through consistent-quality welding, safety at work can also be greatly improved as automation reduces job fatigue and risk of work injuries.”

More importantly, as the automated process is less manpower intensive and faster than manual welding, the project team estimates s i gn i f i can t sav ings i n

Consistent welding quality can be achieved with the automated welding carriage, Bug ‘O’, which can work on curved surfaces



A night at the racesGathering over a sumptuous buffet, 170 clients, partners and employees of Keppel FELS enjoyed an adrenaline-filled evening of horse-racing at the Sundowners party held by Keppel FELS at the Singapore Turf Club on 31 July 2015.

Mr Chr is Ong, Deputy MD, Keppel FELS, shared, “I am glad that we have forged a strong partnership with many of our clients over the years. Indeed, our rigs are like champion

thoroughbreds and our reputation for delivering our

Mr Keith Teo (extreme left), GM (Marketing), Keppel FELS, and Mr Chris Ong (second from left), Deputy MD, Keppel FELS, celebrated the strong partnership that Keppel FELS has forged with its clients, including Mr Louay Laham (third from left), Head (Newbuilds), SapuraKencana Drilling, and Mr Jean-Christophe Le Guen (third from right), Business Development Manager, SapuraKencana Drilling

Reaching out to SMEs(SME), the Sino-Singapore Tianjin Eco-City Investment and Development Co. Ltd

(SSTEC) participated in the SME Expo 2015 from 19 to 20 August 2015.

SSTEC’s booth featured information on the progress of the S ino-S ingapore Tianjin Eco-City.

Since its groundbreaking seven years ago, the city has transformed a vibrant community of over 30,000 res idents who enjoy a growing range of amenities such as top local schools, a general hospital and neighbourhood centres. With a span of government incentive and assistance schemes, the city’s three completed business parks,

including SSTEC’s Eco-Business Park, have been attracting an increasing number of companies. Over the last two years, the number of registered businesses has doubled to the current 2,300. With the city’s growing focus on entrepreneurship and innovation, more start-ups have taken root.

This is the fourth year that SSTEC has participated in the event, organised by the Singapore Chinese Chamber of Commerce and Industry in conjunction with the 17th Annual SMEs Conference. keppeliteSSTEC participated in the SME Expo 2015 in Singapore as part of its outreach efforts to

Singaporean small and medium enterprises

projects safely, on time and on budget continues to give

our customers confidence in us.” keppelite

As part of its outreach efforts to Singaporean small and medium enterprises

34 Empowering Lives


34 Empowering Lives

Centred on stakeholders

At the 15th Keppel Grow Beyond Talk on 6 August 2 0 1 5 , g u e s t s p e a k e r Mr Ho Kwon Ping, Executive Chairman of Banyan Tree Holdings, shared his views on how Keppel could help revolutionise the conduct of Asian businesses by leading the way in stakeholder-driven capitalism.

Organised by Group Human Resources, the talk held at Keppel Leadership Institute drew over 200 attendees and was broadcasted “live” to Keppel’s business units across Singapore.

The founder of Banyan Tree Holdings, one of the world’s top operators in the hospitality and spa industry, is not only a successful businessman, but a keen

proponent of inculcating crit ical thinking among the young. Mr Ho advises Singapore Management University as its Chairman, and as the first Institute of Policy Studies SR Nathan Fellow for the Study of Singapore, he conducted lectures and wrote numerous thought-provoking articles on Singapore’s governance and economy.

Mr Ho opined that Western norms are no longer the yardstick by which non-Western societies measure themselves and aspired towards, and consequently, Asia’s ascendency will put pressure on Asian countries to create new models of economic development, political governance and social relations. Expounding

that stakeholder-driven communitarian capitalism can be an Asian form of ethical wealth creation, he advocated for Asian universities and businesses like Keppel to work together to make communitarian capitalism a vibrant and workable alternative to traditional Anglo-American capitalism.

H e e x p l a i n e d , “Communitarian capitalism would be stakeholder-driven and not shareholder-driven capitalism. The interests o f the commun i t y o f stakeholders in an enterprise - the owners, the employees, the larger community, would be a higher consideration than simply return on capital, which of course remains a critical priority.

“We can dare to be different – to establish new norms of corporate behaviour, new measures of holistic stakeholder-based corporate per formance in which returns to shareholders is a very important but not sole component, and new incentive systems to drive the execution of this entire corporate philosophy.”

During the lively Question and Answer segment, Mr Ho shared on Banyan Tree’s socially-conscious business values, how the company conducts business in an environmentally-responsible m a n n e r, a n d h o w i t developed a cohesive and dynamic company culture to attract and retain talent in a globalised environment. keppelite

Keppelites took the opportunity to engage guest speaker Mr Ho Kwon Ping (left), Executive Chairman of Banyan Tree Holdings, in robust discussions during the Question and Answer segment moderated by Mr Ong Ye Kung (right), Director of Group Strategy & Development, Keppel Corporation

Empowering Lives 35


T h e K e p p e l G r o u p ’s inaugural Emerging Leaders Programme (ELP) kicked off on 27 April 2015 and involved 31 participants from across the Group.

The b l ended - l ea r n i ng programme entailed four days of training sessions and an online learning platform. The programme culminated on 6 August 2015 with project presentations to senior management.

Developed in consultation with an established executive education provider, the ELP is aimed at promoting self-

Maximising leadership potentialawareness and development, as well as leadership skills requ i red fo r e ffec t i ve teamwork in complex environments.

Participants were guided with a case-study workshop and courses on “championing innovation and change”, “building a collective team mindset” and “creating high team performance”, among others.

Grouped into six teams and gu ided by sen io r management from various business units who served as executive sponsors of the

programme, participants shared their findings on various topics, including how Keppel could leverage the capabilities of each business unit to seize opportunities in China and India.

O t h e r p r e s e n t a t i o n s t o u c h e d o n t a l e n t management strategies, i nnova t ion , co rpora te social responsibility, and how Keppel could harness information technology and data to its advantage.

On his experience as a course participant, Yew Teik Kheng, Assistant Project Manager

at Keppel Shipyard, shared, “I present ly manage a team of around 20 people, supervising them on repair pro jects . The greatest challenge that I have is in understanding the unique needs of all individuals in order to inspire their commitment towards the same goals. Through the course, I have learnt some techniques to do this. The self-assessment sessions have also helped me to define my own brand of leadership.” keppelite

Participants of the Keppel Group’s inaugural Emerging Leaders Programme (pictured here with senior management) were guided with a case-study workshop and courses aimed at promoting self-awareness and development, as well as leadership skills required for effective teamwork in complex environments

36 Empowering Lives


Keppel Group senior management with the newest recipients of the Keppel Group Scholarship

Bright sparks

Keppel continues to seek out talented individuals who will drive its businesses forward.

The Keppel Group Scholarship identif ies bright young sparks with the diligence and zeal to grow with Keppel and propel the company into the future. Each year, the Keppel Group Scholarship S e l e c t i o n C o m m i t t e e selects the most suitable candidates from hundreds of applications submitted by high achievers from top academic institutions.

On 24 July 2015, four outstanding individuals were awarded with the scho la r sh ip a t Keppe l Leadership Institute. The

scholars had undergone a rigorous selection process.

Professor Bernard Tan, Chairman of the Keppel Group Scholarship Selection Committee, shared, “Having been on the committee for over 25 years, I have been privileged to witness the growth of our scholars, many of whom have carved out very successful careers with the Group. Our scholars’ excellent academic track record is by no means the only basis of our selection, nor necessarily the most important. Their passion and pursuit of excellence in various fields, be it sports, music or community service, resonate with Keppel’s values.”

Keppel’s scholars undergo intens ive deve lopment through classroom and w o r k p l a c e t r a i n i n g s , rotations across departments within their business units, and receive mentorship and networking opportunities with senior management during their tenure with Keppel. High potentia l candidates are groomed for leadership and receive execut ive development and training.

Prof Tan added, “To our s cho la r s , I wou ld say that there is a wealth of opportunities for you to grow personally and professionally at Keppel. Seize them and stretch yourself to realise your fullest potential.”

Newly m in ted Keppe l Scholar, Samuel Tay, is p u r s u i n g m e c h a n i c a l engineering at the National University of Singapore and will commence his career with Keppel Offshore & Marine upon graduation. He enthused, “I am grateful to be awarded the Keppel Group Scholarship, as it shows that management sees potential in me. Keppel is a large conglomerate with a global footprint. I look forward to working hard and do my best for the company, and at the same time, gain some overseas exposure during the course of my career. I believe that the exper ience wi l l be invaluable.” keppelite

Empowering Lives 37


Led by Mr Chow Yew Yuen (third from right), CEO of Keppel Offshore & Marine, Keppelites pledged their commitment to safety during the launch of Keppel FELS’ 19th HSE Excellence Promotion Campaign

Safety mattersKEPPEL OFFSHORE & MARINEAs part of efforts to create an inc ident - f ree work environment, Keppel FELS organises annual Health, Safety and Environment (HSE) promotional campaigns to ensure safety ownership at all levels, from management to workers.

On 27 July 2015, Keppel FELS launched its 19th HSE Excellence Promotion Campaign at Pioneer Yard. Themed ‘Stay safe, avoid line of fire’, the month-long campaign aims to remind Keppelites to recognise potential hazards in their work environment before commencing work.

D u r i n g t h e l a u n c h , Mr Chow Yew Yuen, CEO of Keppel Offshore & Marine reminded Keppelites to look out for each other’s safety and well-being. He shared, “The operations of our yards are extensive, involving a multitude of trades that are usually fast-paced in nature. While we are able to identify and mitigate risks through safety measures, we also need to remain vigilant to prevent unnecessary incidents.”

KEPPEL LANDEmbrac ing safety as a core value, the boards and management of business units across the Keppel

G roup regu l a r l y wa l k the ground to personally engage with staff and contractors, insti l l ing a strong safety mindset at every level.

The Management Safety Committee (MSC) of Keppel Land adopted this hands-on approach with a safety overseas visit to project sites in Beijing and Sino-Singapore Tianjin Eco-City

(Sino-Singapore Eco-City) on 28 and 29 July 2015.

The committee, led by Mr Peter Jones, GM of Keppel Land’s Workplace Safety and Health (WSH) division, and Mr Goh Han Kee, Deputy GM of Projects at Keppel Land, visited the commercial development in Beijing and Seasons City and Serenity Villa in Sino-Singapore Eco-City to review

safety guidelines and share best practices with ground staff.

Shared Mr Jones, “The visits are great opportunities for the MSC to interact with our overseas Keppel Land staff and contractors. As a global developer, this is also a valuable platform for Keppel Land to reinforce our core value of safety to our partners.” keppelite

Keppel Land’s Management Safety Committee visited project sites in Beijing and Tianjin Eco-City to foster a strong safety culture among ground staff

38 Empowering Lives


Engaging REIT stakeholdersAs part of its ongoing efforts to raise awareness and promote the growth and development of the Singapore REIT (S-REIT) i ndus t r y, Keppe l RE I T regularly supports the annual Asian Cities Programme organised by The Real Estate Academy in China (REACh). The programme aims to expose participants to the real estate sector across key Asian cities including Singapore.

“The presentation given by Keppel was most useful in a sense that I was able to gain a deeper understanding into both the qualitative and quantiative analysis that is undertaken by a S-REIT,” said Justin Lam, Masters student at the Melbourne School of Design, University of Melbourne.

At the recent instalment of the programme on 7 July 2015, 45 students pursuing their Masters at various universities globally gleaned insights into the REIT industry when Keppel REIT management shared on the Manager’s portfolio and key performance indicators.

Separately, Ms Ng Hsueh Ling, CEO of Keppel REIT, addressed about 30 members of the Singapore Institute of Surveyors and Valuers (SISV) on 24 July 2015 at a closed-door session, and spoke to secondary school students during a dialogue session at the 5th Annual Character and Citizenship Education (CCE) Lecture on 6 August 2015. keppelite

Nurturing the next generationKeppel Credit Union (KCU) awards annual book prizes to recognise children of KCU members who have achieved academic and technical excellence for the year. At its annual awards ceremony on 15 August 2015, a total of 25 KCU Book Prize Awards amounting to $13,000 were given to children with outstanding results in PSLE, GCE ‘N’, GCE ‘O’, GCE ‘A’ Levels, local university, NITEC Certificate, NITEC Higher and NITEC Diploma.

Receiving the book prize for the NITEC Higher Certificate Category was Mr Tan Shi Cong. He enthused, “I am proud to receive the award.

My hard work has paid off and I can use some of the money to buy the things that I’ve always wanted!”

Siblings Koh Zheng Wei and Koh Wee Xin both received awards at tertiary level. Wee Xin shared, “The award helps to motivate and reward recipients. We will use the money for our university expenses.”

In addition to financial services and assistance in times of need, KCU also offers various welfare benefits such as term life insurance, medical-aid grants, subsidised eye checks and Long Membership Awards. keppelite

Children of KCU members were rewarded for their academic and technical achievements at the 2015 KCU Book Prize Awards

CEO of Keppel REIT Management Ms Ng Hsueh Ling (centre) spoke to secondary school students during a dialogue session at the 5th Annual Character and Citizenship Education (CCE) Lecture on 6 August 2015

Empowering Lives 39


Keppelites Around the World

Wherever he is based, KC always looks forward to visits by his family members. Pictured above are KC and his wife enjoying an evening walk in Baku

When Mr Lam Khee Chong was tasked to manage Baku Shipyard in Azerbaijan as its General Manager in February 2014, he had little reservation about relocating to a new country, choosing instead to focus on the challenging task ahead. After all, the 50-year-old had worked in many different countries throughout his career with Keppel, including Kazakhstan, Brazi l and Norway, and adjusting to a new culture did not pose a huge challenge for him.

Yet, soon after moving over, the seasoned traveler found himself having to get up to speed on local Azeri customs and etiquette when a conflict between an Azeri and an Indian employee took place in the yard.

“ T h e r e w a s a misunderstanding between the Azeri and an Indian expatriate due to their d i fferent cultures. The Indian was speaking loudly to one of the local employees and another fellow Azeri took offence as he felt that his Indian colleague was being aggressive and confrontational. Back in Singapore, it was pretty common for us to talk loudly in the yards and we can be

Man of fortitude very straightforward with one another, so I didn’t think it was a big deal. This episode really underscores the importance of cross-cultural understanding on the job.

“I came to learn that the Azeris are a very warm bunch and they are used to friendly greetings. For instance, it is common for men to greet each other with a kiss on the cheek or a salaam, a respectful bow signifying peace. This understanding has shaped how I deal with my local clients and how I treat my Azeri employees as well.”

On top of getting acquainted with the Azeri culture, Khee Chong or KC as he is also known to his colleagues, also had to learn the ropes quick ly to manage his 1,400-strong organisation. He shared, “I started off in engineering before moving on to project management. Being in charge of a single project is entirely different from managing an entire shipyard as there are so many different aspects that I need to look into, from employees’ welfare to business strategies.

“I am fortunate that my

team, who was totally new to me when I went over to Baku, has been supportive. Ultimately, my goal is to replicate in Baku Shipyard, the same Can Do! spirit seen in our local Singapore yards. We are also working hard to create a nurturing e n v i r o n m e n t w h e r e employees are given the means and tools to succeed in their career.”

Of course, it is not all work and no play for the father of three children, aged 24, 22 and 15 years old respectively. During his free time, KC enjoys a game of golf or sings karaoke with his colleagues and friends.

Reflecting on how each city provides him with unique

experiences, KC shared, “I’d encourage Keppelites to step out of their comfort zone and go for overseas postings when given a chance so that they learn the different working dynamics in foreign lands. In Singapore, there are systems in place and everyth ing runs pretty smoothly under the watchful eyes of many. However, when you’re overseas, you’ll constantly be thrown with surprises and you have to think on your feet and work with limited resources. This will definitely strengthen and fortify your character.”

For a city that is renowned for its harsh winds, Baku has definitely toughened KC in the one and a half years that he has been there. keppelite

40 Empowering Lives


SCORE BOARDAs at 16 August 2015

105Team

Atlantic

230Team

Caspian

90Team Pacific

Game on!

The 12th edition of the Keppel Games opened with a bang on 3 August 2015, with senior management from across the Keppel Group and Atlantic, Caspian and Pacific team managers leading the Opening Ceremony festivities at the National Service Resort & Country Club Kranji.

A highly anticipated annual affair, the Keppel Games – themed ‘Nurturing Talent, Celebrating Success!’ this year – is a platform for Keppe l i t e s ac ros s the Group to rally and bond through teamwork and sportsmanship.

WINNING DRIVEO v e r 7 0 K e p p e l i t e s participated in the first

Teams Atlantic, Caspian and Pacific proudly displayed their flags at the Opening Ceremony of Keppel Games 2015 held on 3 August 2015

sporting challenge, golf, held on 3 August 2015. Undeterred by the slight drizzle, the players strived to out-drive, out-chip and out-putt each other.

Team Caspian emerged the clear winner with 90 points to bag the Golf Challenge Trophy.

STRATEGIC GAMEPLANSix teams were pitted against each other in a round-robin

format during the Chess Challenge held on 15 August 2015.

Even though most of the teams displayed exceptional strategic plays, all eyes were on Atlantic Team 1 and Caspian Team 1, who were so close in their scores that winners were not decided till the last round of play.

There were plenty of tactical moves and traps along

the way, but in the end it was Atlantic Team 1’s s t r o n g s t r a t e g y t h a t u l t imate ly earned i t a well-deserved victory.

TOP SPINHeld at the S ingapore Table Tennis Association on 16 August 2015, this year’s Table Tennis Challenge was especially exciting thanks to the remarkable showcase of tenacity and passion by the players.

Empowering Lives 41


This was particularly so in the Men’s Singles category, where teams were neck and neck in many games. In one match, a rally had to be extended to 16 points before a winner emerged.

In table tennis, players win games by being the first to reach 11 points. If both players score 10 points, the first player to gain a lead of 2 points wins the game.

Even though Pacific Team 1 lost to Caspian Team 2 during the preliminary round, they persevered through to the finals to earn a rematch. It was a fast and furious final, with Caspian Team 2

Over 70 Keppelites, including senior management, took part in the golf challenge, which kicked off the 2015 instalment of the Keppel Games

Team Atlantic and Caspian players pitted their strategies against each other during the International Chess Challenge

Team Caspian fought their way to victory in the Table Tennis Challenge with their relentless focus and determination

ultimately emerging the winner despite a spirited chal lenge f rom Pac i f ic Team 1. keppelite

42 Empowering Lives


Majulah Singapura Joining in the celebration of Singapore’s Golden Jubilee, business units across the Keppel Group marked the occasion in various ways in the month of August.

KEPPEL FELSIn a show of sol idarity and strength, more than 3,000 Keppelites attended Keppel FELS’ National Day Observance Ceremony on 11 August 2015, decked out in red and white to ce l eb ra te S i ngapo re ’s Golden Jubilee.

Recounting the various t r ia l s and t r ibu la t ions that Singapore faced as a young nation during her early days of independence, Guest-of-Honour, Mr Lim Swee Say, Minister for Manpower, shared how the nation’s progress and transformation could be credited to the hard work and resilience of Singaporeans.

“Keppel FELS is a very good example of the progress that Singapore has made in the last 50 years. You have more than achieved what Mr Lee Kuan Yew challenged you to do, which is to become the biggest ship repair centre between the Persian Gulf and Japan.

“What you have achieved here at Keppel FELS is indeed remarkable and something all of you can be proud of”, Mr Lim added.

Mr Chow Yew Yuen, CEO of Keppel Offshore & Marine (Keppel O&M) concurred,

and spurred Keppelites to rise to the challenges in the industry.

He said, “We have found ourselves in this situation several times before but with each downturn, we learnt valuable lessons and emerged stronger than before. It will not be any different this time round. We need to press on, continually adapt, innovate and leverage technology to meet the industry’s needs.”

Dur ing the ce remony, 218 dedicated employees including Mr Loo Leong Huat, Section Manager, Naval Arch Engineering Department and Ms Atyyah Hassan, General Secretary of Keppel FELS Employees Union were also recognised with long service awards for their hard work which have

Guest-of-Honour Mr Lim Swee Say (fourth from right), Minister for Manpower, celebrated the nation’s Golden Jubilee with Keppel O&M’s management, union leaders and Keppelites

Ms Chin Siew Fei (third from left), Charge d’affaires of Singapore’s Embassy in Brazil; Mr Ho Khek Yong (third from right), Communications Officer of Singapore’s Embassy in Brazil; Mr Marlin Khiew (extreme left), Vice President, Operations, of BrasFELS; and Mr Low Tiau Tong (second from left), Director, Special Duties, of BrasFELS, at Keppel’s SG50 celebrations in Brazil

contributed to Keppel and Singapore’s progress over the years.

KEPPEL FELS BRAZILO n 8 A u g u s t 2 0 1 5 , Singaporean employees seconded to Keppel FELS Brasil and BrasFELS shared a little taste of home with colleagues and their families

from India, the Philippines, Malaysia, Myanmar and B r a z i l . B o n d i n g o v e r local dishes like bak kut teh and carrot cake, they gathered to ce lebrate Singapore’s 50th year of independence with song and festivities.

The event, held in Angra

Empowering Lives 43


dos Reis, Rio de Janeiro, was also attended by the C h a r g e d ’ a f f a i r e s o f Singapore’s Embassy in Brazil Ms Chin Siew Fei.

Mr Marl in Khiew, Vice Pres ident , Operat ions , of BrasFELS, said, “I am glad that Keppelites from various nationalities are

able to jo in our SG50 celebration, and share in this significant moment for all Singaporeans. Through hard work, perseverance

and foresight, Singapore has come a long way from its humble beginnings. The nation’s growth story is something that we can all seek inspiration from.”

KEPPEL REITTo commemorate SG50, Keppel REIT dressed up its green wall at Ocean Financial Centre to feature the iconic SG50 commemorative logo. The wall has become a focal point for those working in the Central Business District and tourists alike. At the same time, the Manager d i s t r i b u t e d s h o p p i n g vouchers to its facilities and operation staff at Ocean Financial Centre and Bugis Junction Towers on 20 and 21 August 2015 respectively, in recognit ion of their dedication. keppelite

Stepping up to good healthTo encourage a healthy and active lifestyle among Keppelites, Keppel FELS held its 14th Active Day on 1 August 2015 at Pioneer Yard. Senior management and more than 3 ,000 employees worked up a sweat as they joined fitness instructors in Bokwa, a cardio workout where participants draw letters and numbers with their feet.

With this year’s theme of ‘Healthy living starts with me’, Mr Chow Yew Yuen, CEO of Keppel Offshore

& Mar ine, encouraged Keppel i tes to adopt a proactive approach to lead a healthier lifestyle.

He shared, “Many of us have hectic schedules and may find it difficult to set aside time for regular workouts. However, we do not need to make drastic changes to our current lifestyle. By taking small steps such as drinking adequate water or getting enough rest every night, you will notice that your quality of life will improve.” keppelite

Senior management and more than 3,000 Keppelites bonded over Bokwa during the annual Keppel FELS Active Day

Keppel REIT marked Singapore’s 50th birthday by featuring an SG50 commemorative logo on the green wall of Ocean Financial Centre

44 Empowering Lives


Celebrating Keppel’s pioneersSingapore’s Jubilee year was an opportune occasion for Keppel to also pay tribute to its own pioneers. Themed ‘Pioneers of Keppel’, the Keppel Offshore & Marine

The highlights of the evening were the presentations by Keppel Steward Mr Tay Kim Kah and Senior Advisor of Keppel Corporation, Mr Choo Chiau Beng. Mr Tay paid tribute to the late Mr George Bogaars, a former Keppel Chairman, and gave insights to his contributions as well as l itt le known facts about him. Later in the evening, Mr Choo shed more light on how Keppel’s pioneers not only survived but thr ived developing proprietary products such as the KFELS B Class rig to propel Keppel O&M into a global leader.

The sharing sessions by Keppel’s pioneers in turn inspired young Keppelites to put their best foot forward for the company. Teo Wei Kiat, Senior Project Manager, Operation, Keppel Shipyard, said, “Seeing our pioneers and current leaders share such strong bonds does give a sense that Keppel is backed by rich history and strong fundamentals. The seniors spoke on their experience over decades of service at Keppel and during overseas postings. It was indeed an enriching evening for us younger ones.” keppelite

(From left) Keppel steward Mr Tay Kim Kah; Mr Loh Chin Hua, CEO, Keppel Corporation; and Mr Chan Hon Chew, CFO, Keppel Corporation, came together to pay tribute to Keppel’s pioneers

Keppel Corporation Senior Advisor Mr Choo Chiau Beng (at podium) recalled how Keppel Offshore & Marine grew to become the world’s foremost rig designer and builder by developing its proprietary KFELS B Class rig

(Keppel O&M) Alumni Dinner was held on 23 July 2015 at the Holiday Inn Orchard.

The event attracted a record of about 180 Keppelites,

most of who have retired from their posit ions at Keppel O&M.

Guests who turned up to rekindle the camaraderie and recall the golden days included senior management from Keppel Corporation and Keppel O&M, directors from Keppel Corporation, as well as Keppel Management Committee members.

Injecting energy and buzz to the event were members from Keppel Young Leaders and young talents from the K-Star Search, representing the new generation of Keppelites. They were there to learn from the pioneers as well as to share their talents.

Empowering Lives 45


Bonding in BatamAs part of its ongoing efforts to engage employees , Keppel REIT Management o r g a n i s e d a t w o - d a y retreat to Batam on 11 and 12 August 2015. The retreat took place in conjunction with the Manager’s annual management s t r a tegy retreat which was chaired by its CEO Ms Ng Hsueh Ling.

During the strategy retreat, the Manager took the opportunity to review its performance in the past year as well as discuss the challenges ahead and i t s bu s i ne s s p l an fo r the year.

It was not all work and no play for Keppel REIT employees; the retreat also included fun-filled activities

Joyous get-togetherKeppel Land China regularly organises get-together events for its employees as a platform for management and employees to bond

and unwind. Its most recent Happy Hour event on 31 July 2015 saw more than 80 management and staff enjoying an evening

of revelry over food, drinks, and games. Many Keppelites spo r t i ng l y d re s sed a s characters from traditional Chinese folklore for the

event, adding a creative twist to the occasion. keppelite

aimed at strengthening the bond among team members. Staff engaged in go-karting and were also treated to visits

to the ‘Chocolate House’ and a kueh lapis factory in Batam. keppelite

Keppel REIT organised a retreat to Batam on 11 and 12 August to strengthen the bond among team members

Mr Ang Wee Gee (right), CEO of Keppel Land, presented the Best Dressed Award to the winning team

Staff and management from Keppel Land China gamely dressed as characters from traditional Chinese folklore and literature classics

46 Nurturing Communities



Theatrical treatAs part of the Keppel Nights programme, more than 200 students from Blangah Rise Primary School and Yu Neng Primary School enjoyed an imaginative theatrical journey into Singapore’s past through a performance of ‘Samsui Women: One Brick at a Time’ on 30 July 2015.

Keppel Nights is a partnership

between Keppel Corporation and Esplanade to give students from heartland schools access to world-class performances presented by Esplanade.

Using music and hand-crafted props and puppets, local arts group The Finger Players brought to life the story of the Samsui women

Primary school students enjoyed a vivid portrayal of the Samsui Women’s contributions to building Singapore through ‘Samsui Women: One Brick at a Time’ as part of the Keppel Nights programme. Showing his support for the programme was Mr Ho Tong Yen (back row, centre), GM of Group Corporate Communications, Keppel Corporation

Having thoroughly enjoyed the performance, students clamoured to go onstage to take part in an interactive game with the cast

Students tried their hands at puppetry under the guidance of the local arts group The Finger Players

whose tireless labour helped to build modern Singapore. Enthralled by the colourful set, catchy melodies and vivacious cast, many students were literally on the edge of their seats.

T h e p r o d u c t i o n w a s commissioned by Esplanade for its ‘Feed Your Imagination’ series, which offers age-

appropriate and interactive arts experiences for primary and secondary students.

“I enjoyed the performance and my visit to the Esplanade very much. The f inger puppets looked fun and interesting and I would like to get one for myself!” shared Lim Hao Yue, a Primary 6 student from Yu Neng.

Fellow Yu Neng Primary 6 student Belinda Ng found the show “very meaningful”, adding, “the time I spent there was definitely worthwhile.”

T h a n k i n g K e p p e l Corporation and Esplanade, Ms Judy Kong, a Blangah Rise Primary music teacher who accompanied her students to the show, said, “It was definitely something different for the kids to experience away from their classroom environment. We hope that there will be more programmes like these lined up for Keppel Nights.” keppelite

Nurturing Communities 47


Reaching out, touching livesKeppel is committed to uplift communities wherever it operates. With volunteerism a key thrust of the Group’s community engagement programme, August was designated as Keppel Community Month to commemorate Keppel’s inauguration. Keppelites across the Group’s businesses in Singapore and abroad participated in a variety of activities to make a difference in the lives of the less fortunate.

CRUISE WITH A CAUSETo mark Singapore’s Golden Jubilee, Marina at Keppel Bay and Keppel Volunteers hosted some 100 seniors from Thye Hua Kwan (THK) Seniors Activity Centres for a cruise around Singapore’s waters as a gesture of appreciation to the pioneering generation.

The growth story of Keppel runs parallel to that of Singapore. It was significant for Keppel as host to organise the charity convoy to sail from its birthplace at Keppel Bay. Mr Ang Wee Gee, CEO of Keppel Land, flagged

In celebration of SG50, Marina at Keppel Bay together with Keppel Volunteers hosted 100 seniors from Thye Hua Kwan Seniors Activity Centres in a charity cruise around Singapore waters. Joining the senior citizens on the cruise were President (Singapore) at Keppel Land, Mr Tan Swee Yiow (back row, right) and Divisional Director (Elderly Division) of THK, Ms Sng Yan Ling (back row, centre)

off the char i ty convoy comprising about 20 vessels. The convoy cruised through Cruise Bay, Tanjong Berlayar and Labrador Park in a tour lasting about an hour.

About 70 Keppel Volunteers were on hand to befriend the seniors and share with

them interesting facts about the landmarks visited during the cruise.

Mr Ang said in his opening speech, “As we mark the Jubilee year and celebrate SG50 , we though t i t would be meaningful to have Marina at Keppel Bay




and our Keppel volunteers host pioneers from Thye Hua Kwan Seniors Activity Centres in a cruise around S i n g a p o re w a t e r s t o appreciate together how our skyline and coastline have changed over the years. Keppel believes that as communit ies thr ive, we thrive. We want to do o u r p a r t t o n u r t u r e communit ies wherever we operate.”

Said Ms Sng Yan Ling, Divisional Director (Elderly Division) of THK, “We are heartened that Marina at Keppel Bay has rallied its boaters for this cruise. Most of our seniors have never been onboard such beautiful motor yachts. This truly is a wonderful experience. Spec ia l thanks to the volunteers who have spent the afternoon accompanying and engaging with our seniors – it was indeed a very happy day for them!”

RACE TO THE TOPTwo teams of four employees each from Keppel Offshore & Marine traded their boiler suits for sports attire and ran their hearts out in the ‘Race to the Sky 2015’ Vertical Marathon, held at Marina Bay Sands on 7 August 2015.

Supported by Keppel Care Foundation, the charity fundraiser for Community Chest beneficiaries involved participants racing up 57 floors to the Marina Bay Sands SkyPark.

In support of Community Chest, Keppelites participated in the Vertical Marathon charity fundraiser, emerging second in the corporate category

Volunteers from Keppel Telecommunications & Transportation and Keppel DC REIT joined hands to bring joy to underprivileged children from Care Corner Student Care Centre (Toa Payoh) in Keppel DC REIT’s inaugural community outreach project

Eugene See, Engineer, Production, from Keppel SingMarine, finished with the fastest overall time of 7 minutes and 16 seconds, while Keppel VM Team 1 emerged second overall in the corporate category with a combined time of 23 minutes and 1 second for its top three runners.

“This is the fifth straight year that Keppel has supported the Community Chest’s fundraising efforts through the Vertical Marathon,” said Eugene. “We are pleased to be racing for a good cause. Even though the journey all the way up to Marina Bay Sands SkyPark may seem daunting at first,

we were certain we would achieve a decent result since we have been diligently training for the upcoming Keppel Games.”

BALLOON BONANZAEmbarking on its inaugural c o m m u n i t y o u t r e a c h project, Keppel DC REIT organised an outreach




activity which involved 20 Keppel Telecommunications & Transportation and Keppel DC REIT volunteers. The event aimed to brighten the lives of 18 underprivileged children from Care Corner Student Care Centre (Toa Payoh). Volunteers joined the children in a fun-filled afternoon on 30 July 2015 with balloon sculpting and mystifying magic tricks.

COMMUNITY SPIRITAs part of Keppel Nantong’s efforts to make a difference in the community where it operates in, the shipyard organised its second blood donat ion dr i ve on 18 July 2015. More than 20 employees stepped forward to donate blood, many of whom were first-time blood donors.

Keppel Nantong’s first blood donation drive was organised in August 2014 to help victims of a manufacturing plant explosion in Kunshan, Jiangsu Province, China. Encouraged by the emphatic

response from its employees during the first donation drive, Keppel Nantong held a second drive in July this year to continue its support for the Nantong Blood Transfusion Centre.

NEW LEASE OF LIFEHelping those in need while doing its part for the environment, the Sino-Singapore Tianjin Eco-City

Mr Liu Jia (centre), Chairman of SSTEC’s Union and Deputy CEO (Land, Project Preparation & Infrastructure) of SSTEC, together with donors and volunteers of SSTEC, collected more than a thousand items comprising clothing, toys and electronics for the needy in Yunnan Province

Keppelites from Keppel Nantong gamely heeded the call for donors at the yard’s second blood donation drive




Investment and Development Co., Ltd (SSTEC) organised a charity donation drive col lecting more than a thousand secondhand items for the needy.

In June this year, SSTEC issued a call for staff to donate their secondhand clothing to benefit the needy students and villagers in Yunnan Province. SSTEC staff rallied behind the SSTEC Union-led initiative and actively participated with donations ranging from clothing to toys and electronics. The staff also gamely volunteered to sort and pack the items for posting.

As master developer for the Sino-Singapore Tianjin Eco-City, SSTEC seeks to promote low-carbon living and foster a spirit of community among employees through such activities. SSTEC is a 50-50 joint venture between the Singapore consortium led by the Keppel Group and the Chinese Consortium.

A HELPING HANDSedona Hotel Mandalay, one of Keppel Land’s hospitality properties in Myanmar, ral l ied its management and staff in a week-long donation drive for villagers of Htein Taw, in Sagaing Region, Myanmar, which was severely affected by the recent floods in end July.

On 12 August 2015, staff loaded up the donated supplies onto a few trucks and delivered the items to

the rural village located outside of Mandalay city centre.

About MMK700,000 (S$760) was donated, on top of donations of food supplies and secondhand clothing and daily necessities.

Said Mr Tony Ravjeet Singh, Human Resource Manager at Sedona Hotel Mandalay, “Despite one of our delivery trucks breaking down, we persevered on the journey and finally reached our destination after a long drive. My heart was warmed upon meeting the villagers when they came out to greet us.”

Separately, Keppelites in Qatar from the Domestic Solid Waste Management Centre, Doha North Sewage Treatment Works and Keppel Seghers’ Doha Office rallied

to raise a total of QAR12,900 (S$5,000) to aid flood victims in Myanmar. The amount has been channelled through the Myanmar Red Cross Society to purchase aid for flood victims.

A GIFT OF BOOKSNinety children from grades one to five in Vinh Son Primary School, located in District 7 of Ho Chi Minh City, were all smiles as they received new sets of textbooks donated by Keppel Land in Vietnam on 3 August 2015. Having supported the school since 2013, Keppel Land officially adopted the school in April 2015.

UNITED AS ONEThere was a buzz in the air as Keppel Volunteers and senior citizens from Thye Hua Kwan (THK) Bedok Radiance Seniors Activity Centre

(SAC) joined the scarlet streams of Singaporeans who had gathered together to celebrate SG50 at the National Day Parade Preview on 1 August 2015.

The day meant a lot to Irene Kee, Systems Engineer, Keppel Offshore & Marine. Her grandmother recently suffered a stroke, and so could not attend the parade, as she had previously. Irene explained, “By volunteering today, I can help ensure that the elderly at the Seniors Activity Centre get a chance to revel in the celebrations today. I am also excited to be able to share my experience with my grandmother.”

Teh Ming Ching, Lead E n g i n e e r a t K e p p e l Singmarine shared how the occasion was particularly meaningful to Singapore’s

Children from Vinh Son Primary School in Ho Chi Minh City, Vietnam, received a gift of textbooks from Keppel Land (Vietnam)




seniors. He said, “Our seniors are a part of Singapore’s pioneer generation. The elderly beneficiaries from the centre have been very enthusiastic about attending today’s event, and most of them sang and cheered loudly in response to the entertaining aerial displays, mobile column and song and dance performances. It is certainly a heart-warming sight.”

Lily Long, Centre Manager for THK Bedok Radiance SAC thanked Keppel for the opportunity. She enthused, “Events like these help the seniors socialise. Many of them face loneliness and

are saddened by the i r circumstance. They feel loved and pampered when they are addressed as ‘ah ma’ or ‘uncle’ by Keppel’s volunteers.”

The bond that developed between Keppelites and seniors over the course of the event proceedings was evident. Amidst fond farewells at the close of the day, promises were made to see each other again soon.

JURASSIC ADVENTURESChildren from KK Women’s and Children’s Hospital (KKH), one of Keppel Volunteers’ adopted charities, had fun ‘walking with dinosaurs’

during a guided tour of t h e L e e K o n g C h i a n Natural History Museum on 1 August 2015.

Visitors to the museum, which is located within the National University of Singapore campus in Kent Ridge, can browse a treasure trove of 2,000 artefacts in its biodiversity and heritage galleries.

Through organising regular recreational events, Keppel Volunteers help improve the lives of these child patients at KKH. Children and volunteers spent a fruitful afternoon exploring the museum’s interactive exhibits which

tell the history of South East Asia’s beautiful flora and fauna. The tour’s highlight included genuine fossils of three diplodocid sauropod dinosaurs, which are among the largest creatures to roam the earth 150 million years ago.

Caro l ine Cha i , Sen io r Medical Social Worker at KKH, shared, “Our patients and their family members enjoyed the visit and guided tour very much. They felt well looked after by Keppel Volunteers, and are appreciative of Keppel’s warmth and generosity.” keppelite

Keppel Volunteers and senior citizens from Thye Hua Kwan Bedok Radiance Seniors Activity Centre bonded over an evening at the National Day Parade Preview on 1 August 2015

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Keppel Shipyard has completed two conversion and upgrading projects for the joint venture between long-standing customer Bumi Armada Berhad and Shapoorji Pallonji Group to date, the last completed project being FPSO Armada Sterling II (pictured) which is now operating in the Cluster 7 field in India

Keppel Shipyard secures contracts worth $125 million Keppel Shipyard secured a Floating Production Storage and Off loading (FPSO) conversion contract as well as three repair, upgrade and modification contracts worth a total of about $125 million.

Keppel Shipyard will be under tak ing the FPSO conversion project for Armada Madura EPC, a joint venture between long-standing customer Bumi Armada and Shapoorji Pallonji Group.

Mr Michael Chia, MD (Marine & Technology) , Keppel Offshore & Marine, said, “This is our third conversion and upgrading project for the joint venture. We are confident that this FPSO will be as successful as our first two FPSOs, Armada S t e r l i n g a n d A r m a d a Sterling II, which have been performing excellently at the D1 field and Cluster 7 field in India respectively. This also marks our 13th conversion and upgrading project for Bumi Armada.

“FPSOs continue to be the preferred product for deepwater product ion and we are pleased that our customised FPSOs have proven to be efficient solutions for our customers. We will continue to work with our partners to provide more value-added and cost-

efficient solutions to meet their needs.”

Work on the FPSO conversion has commenced and is scheduled to complete in 3Q 2016. Upon completion, the FPSO will produce for the Madura Strait Block BD, located 65km east of Surabaya and about 16km south of Madura Island, Indonesia.

Separately, Keppel Shipyard was awarded major repair, upgrade and modification contracts by Totem Ocean Trailer Express (Totem Ocean), Dolphin Drilling and Saipem Offshore Norway AS (Saipem Offshore). Dolphin Drilling & Totem Ocean are new customers to Keppel Shipyard while Saipem Offshore is a returning customer.

Mr Chia added, “Despite

the headwinds faced by the industry due to the current low oil price environment, Keppel Shipyard continues to receive active enquiries on its wide range of expertise including repair works and Liquefied Natural Gas (LNG) solutions. By leveraging our strong track record in repair, upgrade and modification, as well as expanding on our LNG capabilities which include extensive experience in LNG carrier repairs and Floating Storage Regasification Unit conversions, we are able to continue attracting new customers while maintaining the trust of repeat customers to keep our yards busy.”

K e p p e l S h i p y a rd w a s contracted by Totem Ocean for the world’s first conversion of a large roll-on/roll-off cargo vessel to operate on a dual-fuel diesel LNG propulsion

system. The work comprises a complex undertaking of the replacement of four engines, adding 2,200m3

of LNG capacity along with the addition of 47km of new cabling. When the conversion is completed, the vessel, Midnight Sun, will produce significantly less greenhouse gas and particulate matter emissions.

Keppel Shipyard’s work for Dolphin Drilling’s drillship, Be l f o rd Do lph in , w i l l include renewal survey and modification, while its project with repeat customer Saipem Offshore will involve major refurbishment and upgrading works such as the installation of a new 750-tonne Abandon & Recovery winch and additional thruster, as well as a living quarters extension for a Field Development Ship. keppelite

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