SembMarine posts 17 per cent fall in Q2 earnings

The logo of Sembcorp Marine Ltd. is displayed at the company's Sembawang Shipyard drydocks in Singapore.
The logo of Sembcorp Marine Ltd. is displayed at the company's Sembawang Shipyard drydocks in Singapore. PHOTO: BLOOMBERG

SINGAPORE - Low oil prices and muted sentiment in the industry continued to take a toll on Sembcorp Marine's second-quarter earnings.

The rigbuilder on Wednesday announced net profit for the three months to June 30 sank 17 per cent to S$109.2 million.

Revenue fell 9.9 per cent to S$1.21 billion, dragged down largely by lower turnover in its rig building and repair division.

For the half year, net profit dropped 15.3 per cent to S$215.1 million, while revenue slid 6.2 per cent to S$2.51 billion.

Earnings per share fell 17 per cent to 5.23 cents, down from the 6.3 cents from the same quarter a year ago, while net asset value per share stood at 146.04 cents as at June 30, up on the 141.92 cents as at Dec 31 last year.

SembMarine declared a dividend of four cents, down from the five cents it paid out in the same period last year. It will be paid out on Aug 28.

"The persistently low oil prices have escalated the ongoing cuts in global exploration and production capital expenditure," said the group in a statement.

"Some customers are deferring or seeking to defer the delivery of their ordered rigs on a lack of charter contracts."

But it added that it has benefitted from its strategy to diversify its overall product offering, in addition to drilling solutions.

SembMarine has a net order book of S$10.9 billion, including S$1.35 billion in contracts that were secured since January this year.

The stock closed two cents down at S$2.71.

tsjwoo@sph.com.sg