Sembmarine Q1 profit plunges 67.8% to $1.7m

The absence of large scale contracts slashed revenue from offshore platforms to $15m.

Sembcorp Marine’s Q1 profit crashed 67.8% YoY to $1.7m from $5.3m in 2018, mainly due to a continued low overall business volume which impacted the absorption of overhead costs, offset by margin recognition from newly secured production floater projects and delivery of rig, an announcement revealed.

Group revenue crashed 31.3% YoY to $810.6m from $1.18b in 2018 no thanks to lower revenue from rigs and floaters and offshore platform projects, partially offset by higher revenue from repairs and upgrades.

Turnover for Rigs & Floaters fell to $680m in Q1 from $1.02b in 2018, attributed to the higher percentage recognition from drillship and floater projects. Offshore Platforms revenue also crashed to $15m, down from $62m in 2018, due to the lack of large-scale contracts during the period.

Meanwhile, revenue from Repairs & Upgrades rose $103m in Q1 from $79m in Q1 2018.

New contracts secured to-date totalled $175m, for projects comprising the design and construction of a 12,000 cubic metre LNG bunker vessel as well as repair and modernisation work on 13 cruise ships. The Group net order book stands at $5.77b.