SembMarine’s net profit sinks by 36% to $247m

Blame it on lower contributions from rig building.

The one-two punch of low oil prices and the supply glut in the global offshore exploration segment ultimately downed the offshore and marine firm’s earnings by by 17% to $3.6b.

This quarter’s showing was the worst since 4Q07.

According to a statement from SembMarine, higher contributions from offshore platform projects was spoiled by lower contributions from rig building projects, associate losses, and impairments.

Excluding the non-operating impairments, SembMarine says their bottomline would be $264m.

“Turnover for Rigs & Floaters was $2.5 billion for the nine months to September 2015, a 21% decline from the $3.1 billion booked in the previous corresponding period.

The Group delivered three rigs in the nine months, compared with six rigs in the previous corresponding period,” the statement said.

Fraught with uncertainties, SembMarine says it will bank on active management of its balance sheet to maintain a stable financial position.

“Despite the depressed market, the group has secured $2.9 billion in new contracts year-to-date for the offshore production market segments bringing our net total order book to $11.6 billion,” the statement revealed.