SembMarine's Q3 net profit inches up 1.8% to $132 million

SINGAPORE - RIGBUILDER Sembcorp Marine eked out a slight rise in earnings for the third quarter thanks to higher revenue recognition.

Earnings rose 1.8 per cent to $132.0 million for the three months to Sept 30 while revenue was up 3.2 per cent over the same period last year to $1.71 billion.

The rigbuilding unit increased turnover 8.2 per cent to $1.24 billion for the quarter while sales from offshore and conversion and fixed platforms rose 10.6 per cent to $299.8 million.

But turnover from the repair sector dived 22.8 per cent to $157.3 million.

Earnings for the nine months came in at $386.1 million, up 3.4 per cent, while revenue rose 14.5 per cent to $4.39 billion.

The group has a net order book of $12.6 billion, with completion and deliveries stretching into 2019. This includes $4.2 billion in new rig and offshore conversion contracts secured this year but excludes repair and upgrade work.

"Despite the current low oil price environment, the group believes long-term fundamentals driving the offshore exploration and production market remain stable," SembMarine said today.

Earnings per share for the quarter was 6.32 cents, up from 6.21 cents a year earlier, while net asset value as at Sept 30 was $1.33, up from $1.28 as at Dec 31.