Sembmarine's loss widens 76.8% to $52.62m in Q3

Low business volume and costs from new rigs and floaters worsened its loss.

Sembcorp Marine's net loss widened 76.8% YoY to $52.62m in Q3, the company announced. Turnover crashed 38.6% to $717.15m over the same period.

Also read: Sembmarine's loss narrows to $6.83m in H1

This was mainly attributed to additional costs for rigs and floaters projects and continued low overall business volume, although offset by margin recognition from newly-secured production floater projects and delivery of rig.

Meanwhile, the decline in turnover for the quarter mainly came from lower revenues from rigs and floaters projects, which nearly halved (48.1%) to $513.1m. Excluding the effects from delivering two jack-up rigs to Borr Drilling in Q3 2018, its revenue would have declined 8% YoY to $773m.

As for the 9M, net loss has narrowed 25.7% YoY to $59.45m, but turnover plunged 43.2% to $2.26b.

The company expects its losses to carry over to Q4, and for its full year loss to widen from last year, as activity levels in all segments outside repairs and upgrades remained low.