Sembcorp Marine posts 5% drop in Q4 earnings to $174 million

Offshore engineering conglomerate SembCorp Marine has reported a net profit of $174 million for the quarter ended Dec 31, a 5 per cent year-on-year decline from $182 million previously. -- PHOTO: BLOOMBERG
Offshore engineering conglomerate SembCorp Marine has reported a net profit of $174 million for the quarter ended Dec 31, a 5 per cent year-on-year decline from $182 million previously. -- PHOTO: BLOOMBERG

SINGAPORE - Offshore engineering conglomerate SembCorp Marine has reported a net profit of $174 million for the quarter ended Dec 31, a 5 per cent year-on-year decline from $182 million previously.

Turnover fell 15 per cent to $1.44 billion amid the volitility in the oil and gas sector.

"With the steep decline in oil prices in the second half of 2014, major oil and gas companies have announced reduced capital expenditure," SembCorp Marine noted in announcing the results.

But the firm is confident that it's in positioned to benefit from the eventual upturns in oil prices, which have fallen by over 50 per cent since June last year but are now showing signs of recovery.

In 2015, the company will focus on its existing order book to drive its performance.

Its net order book now stands at $11.4 billion with deliveries stretching till 2019, after securing $4.17 billion new contracts this year - a level comparable to 2013's $4.19 billion.

Faced with uneven market conditions, SembCorp Marine achieved a 1 per cent year-on-year growth in full year net profit to $560 million, following a 6 per cent increase in turnover to $5.8 billion.

Turnover for its rig building segment rose 6 per cent to $3.8 billion in 2014 when eight jack-up rigs were delivered. Ship repair revenue however dropped 9 per cent to $622 million in the year.

The company recommend a final dividend of eight cents a share, bringing total dividend for the year to 13 cents.

SembCorp Marine shares eased 1 per cent to $2.99 before the results were announced.