Sembcorp Marine records lower H1 profit

Rig builder Sembcorp Marine recorded lower first-half net profit due mainly to the timing of its new rig building projects that were secured since the last quarter of 2010.

Net profit for the first six months came up to S$300.4m, 8% lower compared to S$324.9m in the corresponding period of last year.
Sembcorp Marine posted revenue of S$1.66bn, down32% from S$2.46bn in the same period of last year.
“The lower turnover was due to the timing in recognition of projects, in particular the rig building sector which saw a 56% decline in turnover as new jack-up rigs secured since the fourth quarter of last year are still in the planning stage,” Sembcorp Marine said.
The Singapore-listed firm has a net orderbook of S$5.7bn with completion and deliveries stretching until 2014.
It remained positive on the global market outlook in view of increasing long-term demand for oil and sustainable oil prices.
“Increased spending is expected for deepwater activity, driven largely by investments in Brazil, West Africa and Asia,” Sembcorp Marine said.
Source: Seatrade-Asia