Sembcorp Marine Q3 net profit plummets 76%

Sembcorp Marine net profit for the three months to Sept 30 fell 75.7 per cent compared to the same period a year ago, to S$32.1 million.
Sembcorp Marine net profit for the three months to Sept 30 fell 75.7 per cent compared to the same period a year ago, to S$32.1 million.PHOTO: SEMBCORP MARINE

SINGAPORE - Lower contributions from rig building projects, higher finance costs, and impairment losses on available-for-sale financial assets, sent third quarter net profit down at Sembcorp Marine.

Net profit for the three months to Sept 30 fell 75.7 per cent compared to the same period a year ago, to S$32.1 million. Revenue fell 34 per cent to S$1.1 billion.

Net profit for the nine months to Sept 30 fell 36 per cent compared to last year, to S$247.2 million. Revenue fell 17 per cent to S$3.6 billion.

Earnings per share for the three months fell to 1.54 cents from 6.32 cents last year.

Net asset value per share was 143.37 cents as at Sept 30, up from 141.92 cents on Dec 31.

Sembcorp Marine did not declare a dividend.

Looking ahead, the company said Thursday that the immediate operating environment in the offshore rig building industry remained "very challenging". It " remains focussed on the timely and effective execution of its current order book and efficient working capital management", it added.

"We are confident of the long term fundamentals of the offshore and marine industry and believe our investments in new capabilities and facilities will help ensure sustainable returns for the Group, both in Singapore and at our overseas yards," it said.

jkoh@sph.com.sg