The Singapore-listed rig builder posted a second quarter profit of SGD124.89m ($97.9m), a drop of 12.5% from SGD142.78m recorded in the same period of last year.
Revenue during the quarter also decreased 7.6% year-on-year to SGD1.12bn.
Sembcorp Marine said the lower profit was attributable “mainly to the product mix and timing in recognition of the rig building and ship conversion/offshore projects.”
Since the start of the year, Sembcorp Marine has secured contracts worth a total of SGD3.5bn, excluding repair jobs, putting the group's orderbook at SGD14.4bn, with completion and deliveries extending until 2019.
“Fundamentals for the offshore and marine industry remain stable underpinned by high oil prices and projected increases in offshore E&P spending. Demand for rigs is expected to remain strong, however, competition from the Chinese and Korean yards will impact margin,” the company commented.
"Despite the challenging shipping market environment, there is continued demand for repairs in the niche segments of LNG carrier repairs, life extension work and upgrading of offshore vessels and cruise ships,” it added.
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