SINGAPORE - Sembcorp Marine, the world's second largest rigbuilder, has posted a net loss of SS$536.9 million for the fourth quarter ended Dec 31, amid the prolonged downturn in the industry.
This is a far cry from the net profit of S$174 million in the same period a year ago.
Turnover shrank 8.2 per cent to S$1.33 billion, on the back of "lower revenue recognition for rig-building projects," said the company on Monday.
Notably, SembMarine also made impairment and provisions of S$609 million for rigs, including S$329 million for its projects for Brazilian rig-building firm Sete Brasil, which is facing the threat of bankruptcy.
"Sembcorp Marine views these provisions as prudent and necessary under present circumstances," said the company.
For the 12 months to Dec 31, SembMarine posted a net loss of S$289.7 million, compared with the net profit of S$560.1 million previously, while revenue slumped 14.8 per cent to S$4.97 billion.
Losses per share for the quarter came in at 25.7 cents, well down on the earnings per share of 8.34 cents previously. Net asset value per share stood at 120.24 cents as at Dec 31, lower than the 141.92 cents as at the same time the year before.
SembMarine declared a final dividend of two cents per share, down from the eight cents previously. Together with the four cents paid out during the interim results, this brings the total dividend to six cents, down from the 13 cents previously.
SembMarine shares closed 2.8 per cent up at S$1.46 on Monday, before the results were announced.