Sembcorp Marine swings to Q4 profit, revenue falls

A Sembcorp Marine employee prepares to board Tullow Oil's newly completed Floating Production, Storage and Offloading vessel Prof. John Evans Atta Mills at Sembcorp Marine's Jurong Shipyard in Singapore on Jan 20, 2016.
A Sembcorp Marine employee prepares to board Tullow Oil's newly completed Floating Production, Storage and Offloading vessel Prof. John Evans Atta Mills at Sembcorp Marine's Jurong Shipyard in Singapore on Jan 20, 2016. PHOTO: REUTERS

SINGAPORE (REUTERS) - Rig builder Sembcorp Marine Ltd (SembMarine) posted a profit in the fourth quarter, versus a loss in the year-earlier period when it took large provisions, while revenue was hit by customers deferring projects.

SembMarine posted a S$34 million profit for the three months through December, compared with a loss of S$537 million a year prior. Revenue fell 34 per cent to S$830 million.

SembMarine and crosstown rival Keppel Corp Ltd have been suffering from an oversupply of offshore oil drilling rigs, with customers delaying contracts and not placing new orders while oil prices hover at about half their 2014 peaks.