Sembcorp Marine suffers $21.8m net loss in 3Q

Gross profits for the first nine months also plunged 44% to $258m.

Sembcorp Marine recorded total group revenue of $2.71 billion for the nine months ended Sep 30, 2016 (9M 2016). This compares with $3.64 billion in group revenue posted in 9M 2015.

The Rigs & Floaters segment posted revenue of $1.39 billion for the 9M 2016, a 44% year-on-year decline from the $2.46 billion booked in the previous corresponding period. The decline was led by lower revenue recognition for the rig building projects resulting from customer deferment requests and customer restructuring. Floaters revenue was higher.

Offshore Platforms revenue increased 27% year-on-year from $722.4 million in 9M 2015 to $915.7 million in 9M 2016 on sales recognition of its robust order book base from Offshore Platforms contracts.

For the 9M 2016 period, key deliveries for Rigs & Floaters and Offshore Platforms segments include an accommodation semi-submersible vessel to Prosafe, the Ivar Aasen process platform, drilling and living quarters topsides to Det Noske Oljeselskap ASA, the Maersk Highlander F&G JU2000E jack-up rig to Maersk Oil and the Noble Lloyd Noble jack-up rig to Noble Corp.

Repairs & Upgrades revenue declined 12% year-on-year to $349.9 million for 9M 2016 from $397.2 million previously, despite an increase in the number of ships repaired to 379 vessels for 9M 2016 compared with 358 vessels in 9M 2015.

Group gross profit for 9M 2016 declined 44% year-on-year to $258 million from $459 million. EBITDA was $264 million compared with $454.1 million achieved previously.

The Group’s share of losses of associates and joint ventures for 9M 2016 increased by 29% year-on-year to $29.8 million. For the 9M 2016, Group net profit declined 82% year-on-year to $44.5 million from $247.2 million in 9M 2015. A gain of $9.3 million from Gravifloat investment was offset by an impairment loss of $12.3 million on the Group’s holdings in Cosco Corp.

Foreign exchange losses in 9M 2016 of $71.1 million mainly arose from revaluation of assets and liabilities denominated in Sterling pounds and US$ to Singapore dollars.