Engineering solutions provider SBI Offshore posted lower net profit in the first-half of this year as it incurred higher operating costs from business expansion.
The Singapore-listed firm recorded net profit of $300,000 in the first six months of 2011 compared to $400,000 in the same period of 2010.
“The group incurred higher operating costs related to its design and engineering subsidiaries in the US and Singapore and as it built up capabilities of its manufacturing subsidiary in China (...),” SBI Offshore said.
Revenue, however, rose to $5.1m in the period compared to $4.7m in the previous year's period.
“New replacement demand of offshore drilling rigs in 1H2011 continues to be high, such as Petrobras' tender for 21 ultra-deepwater drilling rigs which is expected to boost newbuilds,” said Jonathan Hui, executive chairman and ceo of SBI Offshore.
Source: Seatrade-Asia
