For the last few weeks, Singapore-based Keppel Offshore and Marine Ltd (“KOM”) has been in the news for all the wrong reasons. KOM and its wholly owned US subsidiary, Keppel Offshore & Marine USA Inc. have agreed to pay a combined total penalty of more than US$422 million (S$565 million) for making corrupt payoffs to officials in Brazil. Brazilian authorities will receive 50% of the penalty, while the US and Singapore authorities will receive 25% each.
This will hurt. KOM’s profit after tax for financial year ending 31 December 2016 was only S$326 million. Its business was already troubled as can be seen from the fact that its 2015 profit after tax was a much higher S$528 million. Continue reading ‘Flapping wildly amidst the wreck’