Sembcorp Marine recovers from losses, records $75.2m full-year profit

Thanks to the receipts from completed rig projects.

Sembcorp Marine managed to reverse its losses in 2015 with a full-year profit of $75.2m in the past year, thanks to the receipts of its completed rig projects.

The group said its revenue totalled $3.54b down from $4.97b in the past year. This came as the turnover for Rigs & Floaters declined 43% to $1.89b due to lower revenue from drillships and other rigs.

Meanwhile, Offshore Platforms revenue increased 10% to $1.12b on the higher contribution of offshore platform projects.

However, Repairs & Upgrades revenue saw an 18% decline to $460m, mainly because of the lower average revenue per vessel amidst the tough competition.

"While prospects for the oil & gas industry have taken a more positive turn following the November 2016 agreement by OPEC and major non-OPEC countries to cut production, we believe a more robust recovery may take longer. Despite the challenging outlook and intense competition, we believe that growth prospects for the offshore and marine industry remain positive in the medium to long term," the group said.

It added, "However, with increasing enquiries for non-drilling solutions, we foresee an earlier recovery in demand for fixed platforms, FPSO and FSO conversions and new-builds in the next few years. Rising global demand for gas also augers well for our broad-based LNG solutions and capabilities. We believe these are the key segments that will offer opportunities in 2017."