Lower overall business volume, which hit the absorption of overhead costs, dragged down Sembcorp Marine's results for the first quarter ended March 31.

The offshore and marine firm yesterday posted a 67.8 per cent fall in first-quarter net profit to $1.7 million from $5.3 million in the prior year on the lower turnover, which was partially offset by margin recognition from newly secured production floater projects and the delivery of rigs.

On a per share basis, earnings came in at 0.08 cent for the three-month period, down from 0.25 cent last year. No dividend has been recommended.

Group revenue slipped 31.3 per cent to $810.6 million, compared with $1.18 billion in the first quarter of last year. This was mainly due to lower revenue recognition from rigs and floaters as well as offshore platform projects - which was partially mitigated by higher repair and upgrade revenue, said SembMarine.

Looking ahead, the group noted that global capital expenditure spending for offshore exploration and production continues to improve, especially for the offshore production segment.

"Offshore drilling activities saw some improvement in day rates and utilisation levels for some drilling segments," the company said.

Nonetheless, it added that "competition remains intense" and that production activity for the group is expected to remain low.

On this note, it said it will continue to manage its costs, cash flows and gearing, and to capitalise on new business opportunities.