SEMBCORP MARINE 1H 2017: REVENUE AND PROFIT SINK

Sembcorp Marine posted Group revenue of $1.42 billion for the six months to June 30, 2017, compared with $1.83 billion in 1H 2016. Net profit achieved was $45 million for the first six months of FY 2017. Turnover for Rigs & Floaters was $669 million for 1H 2017, a 30% decline from the $956 million booked in the previous year due mainly to lower revenue from rigs construction and FPSO conversions. This was partially offset by revenue recognition from an ongoing semi-submersible crane vessel project. Offshore Platforms revenue declined 20% year-on-year to $473 million in 1H 2017 from $589 million in 1H 2016 due to lesser projects on hand. Repairs & Upgrades revenue totalled $228 million, a 7% year-on-year decline from $245 million in 1H 2016. While fewer ships were repaired, the average revenue per vessel improved slightly due to a better vessel mix with more higher-value works.
Sembcorp Marine said: “Global exploration and production spending is expected to increase. Offshore day rates appear to have stabilized and utilization levels have begun to improve. However, a more robust recovery will take longer.
Enquiries for non-drilling solutions continue to be encouraging.” (Source Sembcorp Marine)