Marine Link
Thursday, December 8, 2016

Sembcorp Marine Profit up on Rig Building

August 4, 2014

Jack-up rig Noble Mick O'Brien, delivered to Noble Drilling in 2013 (Photo: Sembcorp Marine)

Jack-up rig Noble Mick O'Brien, delivered to Noble Drilling in 2013 (Photo: Sembcorp Marine)

Drilling rig builder Sembcorp Marine Ltd said on Monday its second-quarter net profit rose 5.4 percent from a year earlier, helped by stronger performance from its rig building and fixed platform businesses.

The Singaporean company reported a net profit for the quarter ended on June 30 of S$131.6 million ($105.57 million), which brings the first-half net profit to S$254 million. The mean full-year net profit forecast stood at S$597 million, based on estimates from 24 analysts, Thomson Reuters data showed.

The company reiterated that its wholly-owned new yard in Brazil is due to begin operating in the second half of 2014.

Sembcorp Marine and rival Keppel Corporation Ltd have helped Singapore win the status of the world's top jackup drilling rig producer, though rapid ascent of Chinese yards is threatening the dominance of the Singaporean companies.

The group said while long-term fundamentals driving growth in the offshore oil and gas exploration and production market remain stable, there may be some near-term headwinds.

A slowdown in capital expenditure is expected to limit new orders and rising competition is hurting margins, the company said in a statement.

Sembcorp Marine's revenue for the quarter rose 19 percent to S$1.34 billion due to higher revenue recognition from its rig building projects, though revenue from the ship repair business fell 5 percent due to a slowing shipping market.

(1 US dollar = 1.2466 Singapore dollar)

(Reporting by Rujun Shen and Rachel Armstrong, editing by Louise Heavens)



 
Maritime Reporter Magazine Cover Nov 2016 - Workboat Edition

Maritime Reporter and Engineering News’ first edition was published in New York City in 1883 and became our flagship publication in 1939. It is the world’s largest audited circulation magazine serving the global maritime industry, delivering more insightful editorial and news to more industry decision makers than any other source.

Subscribe
Maritime Reporter E-News subscription

Maritime Reporter E-News is the subsea industry's largest circulation and most authoritative ENews Service, delivered to your Email three times per week

Subscribe for Maritime Reporter E-News