SINGAPORE - Sembcorp Marine said its net profit for the first quarter fell 28.8 per cent from the same period a year ago to S$39.6 million.

Revenue for the three months ended March 31 dropped 17.2 per cent year on year to S$760 million, dragged down by lower revenue from drillships and other rigs and lower ship repair orders.

The firm was cautiously optimistic about its outlook, noting that oil prices appear to have stabilised.

"Global exploration and production spending is expected to increase in 2017, compared to the last two years. Enquiries for non-drilling solutions continue to be encouraging. We are cautiously optimistic of new orders for production facilities in the next few years."

It added that customer interest in its broad-based liquefied natural gas solutions and capabilities remains strong, as global demand for gas is on the rise.

"We are making steady progress in the development and commercialisation of our Gravifloat technology for near-shore gas infrastructure solutions. However, it will take time for such efforts to translate into orders."

Earnings per share fell to 1.89 cents in the first quarter, from 2.63 from the same period a year ago.

Net asset value rose to S$1.2412 per share, up from S$1.2262 at the end of December last year.