Sembcorp Marine reports 48.1 per cent fall in net profit

Sembcorp Marine reports 48.1 per cent fall in net profitSingapore's Sembcorp Marine, which is the world's second-largest oil rig builder, has reported a disappointing fall of 48.1 per cent in net profit to S$115.5 million during the third quarter of the year.

The revenues of the firm fell 31.5 per cent to S$892.4 million during the quarter compared to the same quarter of the previous year, according to the firm. The fall was mainly due to the timing of revenue recognition of its rig building projects. The outlook for the firm remains positive for the coming months.

The offshore exploration and production spending continues to increase as new discoveries are made in deepwater basins of the Gulf of Mexico, Brazil, East and West Africa and Nigeria. The company noted that enquires continues to be healthy even as competition has affected its margins.

The company was able to get orders worth a total of S$9.1 billion yet during the year. It total net order book is now at a record high of S$12.1 billion and deliveries go beyond 2019.

Sembcorp Marine shares fell 1 cent to close at S$4.69 before the announcement of the results.