SPC’s full-year earnings drop

Singapore Petroleum Co. (SPC) is slashing dividends after its full-year net profit dropped by more than half due to inventory write-downs from lower oil prices and weaker refining margins. SPC, part of Keppel Corp., is recommending a final ordinary dividend of SG$0.08 (US$0.05) per share for 2009 compared with SG$0.40 (US$0.26) in 2008. Net profit for 2008 was SG$229.7 million (US$151.45 million), 55.4% down from the SG$514.7 million (US$339.34 million) recorded a year earlier. SPC said it will ”continue to review all its capital investments and operating expenditures to ensure that they make economic sense in the current difficult environment’”, which has caused the oil and gas industry to delay or cancel projects and planned investments. In related news, Lee Tay has been appointed the company’s president of marketing. He will be responsible for commercial, lubricant and retail sales and development, special products, market development and ventures, and operations and logistics. (January 21, 2009)