Keppel Corp. Diversification and Growth Go Hand in Hand

Keppel Corporation Limited (Keppel) is a $2.4 billion diversified conglomerate incorporated in the Republic of Singapore. Through its numerous subsidiaries, strategically located in 13 different countries, it is involved in six broadly-defined different industries (see Tables 1 & 2).

Historically, the Shiprepair & Shipbuilding segment was Keppel’s principal activity. In 1992, revenues from this industry segment represented 40% of Keppel’s total revenues of $1.6 billion. However, in the past three years, the greater growth in other industry segments, combined with a slowdown in shipyard activities, resulted in a decrease in the proportion of revenues from Shiprepair & Shipbuilding activities. In 1993 and 1994, Shiprepair & Shipbuilding revenues dropped to 32% and 28% of total revenues, respectively. In 1995, the proportion of revenues coming from Shiprepair & Shipbuilding activities reached a low of 20%. For the first time, it was third to revenues from Offshore & Specialized Building activities that, at $600 million, represented 25% of total revenues and from Banking and Financial Services that, at $580 million, accounted for 24% of Keppel’s total revenues.

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