Sembcorp Marine sank into a $29.76m loss in Q3

It blamed continued low overall business volume.

Sembcorp Marine (SembMarine) saw its net profits sink further to $29.76m in Q3 and an $80.06m loss YTD, an announcement revealed. However, turnover soared 60.% to $1.17b in Q3 from $729m last year.

According to its financial statement, net loss in Q3 was mainly due to loss upon the sale of a semi-submersible and continued low overall business volume which impacted the absorption of overhead costs.

SembMarine also reported a $55.62m loss in Q2 which it attributed to the same reasons.

Also read: Sembcorp Marine sank into $55.62m loss in Q2

Meanwhile, group turnover for Q3 rose due to higher revenue recognition for rigs & floaters following the delivery of two jack-up rigs and revenue recognition for newly secured projects.

“Excluding the effects of the delivery to Borr Drilling in Q3 2018 and revenue adjustment in Q3 2017 due to termination of two rigs contracts with a customer, revenue would have been $773m, an increase of 27% compared with $611m in Q3 2017,” said SembMarine.

Whilst the firm is encouraged by pipeline inquiries and tenders for innovative engineering solutions and initial improvements in offshore drilling activities, SembMarine noted that competition in the repairs and upgrades segment remains intense and offshore rig orders may take some time to recover as the market remains oversupplied.

“Overall business volume and activity for the Group is expected to remain relatively low for the immediate quarters,” SembMarine stated. “The trend of negative operating profit is expected to continue for the foreseeable quarter.”