SembCorp Posts Small Profit Rise

Tuesday, February 13, 2001
SembCorp Marine Ltd. (SCM), Singapore's largest ship repairer, posted a small rise in its 2000 net profit, in line with market expectations. SCM, 63 percent owned by conglomerate SembCorp Industries Ltd. with a market value of about S$1.1 billion, said last year's net profit was S$80.16 million, up 2.3 percent from 1999. Its bottom line was boosted by a one time gain of S$6.5 million from the sale of shares in Jurong Technology Industrial Corp. early last year and a writeback of tax over provisions of S$4.7 million. Analysts have a consensus 2000 forecast of S$81.5 million, according to Multex Global Estimates. The forecasts ranged from a low of S$71.5 million to a high of S$86.8 million. SCM fared much better than its smaller rival Keppel Hitachi, which reported a 50 percent slide in 2000 earnings due to a weak ship repair market. SCM said lower turnover was due to smaller contributions from the shiprepair business and a divestment of JTIC after its public listing last year. Tan Kwi Kin, president of SCM, told a news conference that group revenue was expected to improve by five to 10 percent from last year, helped by shiprepair and newbuilding businesses. He said about S$450 million of orders were expected to come from shiprepair, and about S$400 million would come from newbuildings, conversions and offshore businesses this year. The firm's outstanding order book stood at S$1 billion for the next two years, he said, with some S$400 million of the orders to be recognized in 2001. Wong Kok Siew, chief executive officer of SembCorp Industries, said the group had also budgeted S$100 million for capital expenditure this year, of which about 80 percent would be used to expand into Brazil, China and the Middle East through acquisitions. The balance of S$20 million would be used domestically for system upgrading. Wong said SCM was generating good cashflow and there was no need to raise funds for its expansion plans. Overseas contributions, accounting for less than 10 percent of group revenue, was expected to rise to 30 to 40 percent in five years, through its expansion plan. Deputy president Heng Chiang Gnee said its shiprepair business was reaching full capacity, and customers which arrived on short notice, had to be turned away in the last few weeks. For 2001, the group said it expected to maintain its performance. It said in a statement accompanying its results that the shiprepair market was expected to improve in 2001, but keen competition could put pressure on its operating margins. Last year, the shiprepair business accounted for 50 percent of the group's business, offshore business and ship conversion contributed 32 percent, with shipbuilding and others making up the rest. On its intention to merge with Keppel Hitachi Zosen, Wong said a consolidation in the Singapore shipyard industry remained valid because of global competition. – (Reuters)

Maritime Today


The Maritime Industry's original and most viewed E-News Service

Maritime Reporter June 2016 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

Senate Confirms Three to Serve on Federal Maritime Commission

The U.S. Senate has confirmed the nominations of three individuals to serve as Federal Maritime Commissioners: Rebecca F. Dye, Michael A. Khouri and Daniel B. Maffei.

Xeneta: No Silver Lining for Container Shipping in Brexit Storm

Xeneta, a  global benchmarking and market intelligence platform for containerized ocean freight, believes that the UK’s decision to leave the European Union will

PALFINGER Finalizes Harding Acquisition

The PALFINGER Group closed the acquisition of 100 percent of the shares in Herkules Harding Holding AS, i.e. the globally operating Harding Group, supplier of lifesaving

Ship Repair & Conversion

Solstad CSV Gets Propulsion Overhaul at Gibdock

Gibraltar’s Gibdock shipyard has completed its scope of work on Solstad Shipping’s Normand Cutter, a 127-meter-long, 10,979grt construction support vessel (CSV)

Tanker Allision on the Piscataqua River

The U.S. Coast Guard says it is continuing to monitor the condition of the chemical tanker Chem Venus, after it allided with three unoccupied, moored sailboats

Damen Signs MOU with Sydney City Marine

Damen Shipyards Group and Sydney City Marine have signed a Memorandum of Understanding (MOU) outlining the future cooperation of the two companies concerning the

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Navigation Offshore Oil Pipelines Pod Propulsion Port Authority Ship Repair Ship Simulators Sonar
rss | archive | history | articles | privacy | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.1287 sec (8 req/sec)