Singapore’s Sembcorp Marine has hit back at claims made by compatriot Marco Polo Marine over a poorly constructed rig, and suggested that its client wants to avoid paying a second disbursement of $21.43m.
Singapore’s Marco Polo Marine has unilaterally terminated a $214.3m rig order at Sembcorp Marine’s PPL Shipyard, and the rigbuilder has regarded its client’s action as a breach of the contract.
Singapore’s Sembcorp Marine has posted a fall in earnings in the third quarter ended 30 September 2015, dragged down by reduced rig deliveries and lower ship repair revenue.
UAE-headquartered rigbuilder Lamprell reported a more than halving of net profit the H1 2015, and is bidding for $5.2bn in new projects with a greater focus on the Middle East.
Singapore shipyard group Sembcorp Marine (Sembmarine) reported a 15% decline in net profit to SGD215m ($157.4m) hit by low oil prices and reduced capital expenditure in the oil and gas industry.
Amid the downturn in the drilling rig market due to the fall in crude oil prices, China’s Cosco Shipyard has urged for a greater cooperation between rigbuilders and owners in order to tide through the recession.
Singapore’s Sembcorp Marine (SembMarine) said it is facing a challenging year ahead as the volume of new rig orders has shrunk and charter rates have declined.
The rising Chinese offshore market has seen a dip in orders for offshore oil rigs and equipment in 2014, according to data from the center for economic research at China Shipbuilding Industry Corporation (CSIC).
Sembcorp Marine (Sembmarine) made a SGD601.2m ($442.2m) profit in 2014, but it expects a tougher market in 2015.