SINGAPORE - Rig builder Sembcorp Marine (SembMarine) saw its net loss widen to $52.6 million for its third quarter ended Sept 30, from a $29.8 million net loss a year ago.

Its shares fell 3.7 per cent following the release of the results on Wednesday morning (Nov 13). At the market's open, the counter fell to $1.29 as at 9am, compared with a closing price of $1.34 on Tuesday. It has since edged up 3.0 per cent or four cents to $1.30 as at 9.57am.

The rig builder said the net loss was mainly attributed to costs for rigs and floaters projects, as well as continued low overall business volume which impacted the absorption of overhead costs.

This was offset by margin recognition from newly secured production floater projects and rig delivery.

The group's revenue for Q3 fell 38.6 per cent to S$717.2 million, from S$1.17 billion a year ago, mainly due to lower revenue recognition from rigs and floaters projects.

Excluding the effects of delivery of two jack-up rigs to Borr Drilling in the third quarter of 2018, revenue would have been $773 million, the group said.

Loss per share amounted to 2.52 cents from 1.42 cents a year ago.

On its outlook, the group is expecting losses to continue into the fourth quarter, and the full-year loss to be higher than last year's. It added that challenges in the offshore and marine sector persist and competition remains intense.

Activity levels in all segments meanwhile "remain low" except for repairs and upgrades which continues to improve. This is underpinned by the cruise ship segment, and IMO (International Maritime Organization) regulations that require the installation of ballast water treatment systems and gas scrubbers, it added.