October 2010 - Keppel Corporation

Sustaining Growth 7Fortifying collective strengthsAt Keppel Corporation’s third quarter and nine months 2010 results webcast,CEO Mr Choo Chiau Beng touched upon various project updates and opportunities,as well as the Group’s ability to weather the uneven global recovery.Keppelite reproduces excerpts of his speech.CAUTIOUS OPTIMISMOver the last quarter, wehave seen continuing globalrecovery, although the pacevaries across different regionsand sectors. The US recoveryis moderating in the face ofdebt, continued uncertaintyand waning stimulus, whileEurope continues to seean uneven recovery amidstcomplex policy challenges.In contrast, Asia is experiencinga vigorous and balancedrecovery. China and India areboth poised to register stronggrowth this year. Singapore’seconomy for the third quartergrew by 10.3%, and is ontrack for full-year growth of arobust 13-15%, although thegovernment has cautionedthat this is not likely to besustained.Financial conditions acrossthe globe have started tonormalise but institutionsand markets remain fragile.Oil prices are expected toremain around US$80 abarrel in the coming year.OFFSHORE & MARINEThe fundamentals of theoffshore and marine industryremain sound. Projectionsindicate that energy demandfrom developing countriesis set to grow by 65%from 2005 to 2030. Withfossil fuels remaining thedominant energy sourcefor the foreseeable future,the long term outlook foroffshore drilling will staypositive.Continues on page 8...With oil companies expected to increase exploration and production efforts in the coming year, Keppel Offshore & Marine remains well-positioned to meet the needs of its customers and theindustryKeppelite I October 2010