Part 6/11:

Interestingly, despite Keppel's disappointing quarterly results, the company's underlying profitability remains evident when excluding impairments, with reported profits exceeding S$200 million. The failed bid and Tamasik’s strategic stance reflect the complex valuation environment, where short-term setbacks contrast with underlying operational strengths.

The Future of the O&M Sector: Consolidation on the Horizon

Market analysts see ongoing consolidation as essential for the sector’s rejuvenation. With order books at critically low levels—far below their peaks in 2014—the industry faces a pivotal paradigm shift. The combined challenges of declining new orders, heightened competition, and industry oversupply necessitate strategic mergers and asset restructuring.