Sembcorp net profit up 1.2% in 1Q11

Net profit surged to $150.6 million, said Sembcorp Marine.

This was 1.2% higher as compared with $148.8 million for the corresponding period in 2010. This increase was attributable mainly to improved margins driven by higher operational efficiency and productivity gains through execution of repeat rig orders.

According to their report, group turnover of $828.9 million was 39% lower as compared with $1.4 billion in 1Q 2010. The lower turnover was due to lower revenue recognition in the rig building sector as new jack-up rigs secured last year are still in the planning stage as compared with more turnkey semi-submersible rig building projects and the resumption of revenue recognition on the completion and delivery of PetroRig III for the corresponding period in 2010.

Group operating profit of $166.1 million was 4.1% higher as compared with $159.6 million in 1Q 2010.

At pre-tax level, Group profit at $180.1 million was 2.6% down as compared with $184.9 million in 1Q 2010.