Oil Volatility Negates Positive News for Keppel — Market Talk

0126 GMT [Dow Jones] Keppel Corp (BN4.SG) falls 1.1% to S$5.52, little helped by new orders and a joint venture to supply liquefied natural gas fuel to ships in Singapore. Keppel said after the markets closed on Thursday that its unit has won four contracts worth 120 million Singapore dollars. In a separate announcement, Keppel said it has formed an equal stakes joint venture with Royal Dutch Shell PLC (RDSA) for LNG bunkering operations in Singapore. Shares are likely reacting to the decline in oil prices overnight. Though oil has recovered in early Asian trading, the volatility underscores the challenges for oil exploration and production firms, which have been forced to scale back business amid low oil prices. The troubles with their customers are hurting the prospects of Keppel and other Singapore-listed firms that produce equipment or support the offshore oil and gas industry. Keppel’s fall is steeper than a 0.3% decline in the Straits Times Index. (gaurav.raghuvanshi[a]wsj.com)

 
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