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Image courtesy of Keppel Corporation.

Singapore-based Keppel Corporation saw its net profit drop 41 percent year-over-year in the first quarter.

The company reported on Monday that its first quarter net profit fell to $157.88 million (S$211 million), down from $269.36 million in the first quarter of 2015.

First quarter operating profit dipped about 30 percent year-over-year to $207.96 million on revenues of $1.30 billion, down from about $2.1 billion in the same quarter last year.

Earnings per share dropped 41 percent from the same quarter last year to S$0.116.

Revenue from the company’s Offshore & Marine Division decreased by $829.78 million to $612 million (S$818 million) due to lower volume of work, the deferment of some projects and the suspension of its Sete Brasil contracts.

Keppel said earlier this year that it has halted construction on six new rigs for Sete Brasil after the firm failed to make payments for over a year.

Keppel CEO Loh Chin Hua confirmed on Monday that company will not resume construction on the rigs until payment recommences.

“Brazil, which has traditionally been one of Keppel O&M’s key markets, continues to be mired in economic and political challenges, as well as the Lava Jato corruption scandal. Shareholders of Sete Brasil have yet to reach a decision on the future of the company,” Loh said.

Keppel said in February that it had cut ties with a representative accused of channeling bribes to Petrobras officials.

Brazilian prosecutors allege that several engineering, construction and service firms participated in a bribery scheme in an effort to win contracts with state-owned Petrobras

Sete Brasil is a state-owned rig firm established to provide vessels to Petrobras.

“The sustained low oil price environment continues to take a toll on the global oil and gas industry, which is in the midst of one of the most severe downturns in recent years. In the global offshore industry, we are seeing layoffs, mergers as well as large reductions in capital expenditure as the industry prepares for a longer winter,” Loh said.