SINGAPORE - Sembcorp Marine (Sembmarine) on Monday reported a net loss of $118.3 million for the second half of 2022, significantly narrower than the loss of $523.3 million posted for the same period in 2021.
The company attributed this to higher contributions from floater and offshore platforms projects, as well as stronger contributions from its repairs and upgrades business.
This was offset by lower grant income and higher tax expenses.
Sembmarine said it turned Ebitda (earnings before interest, taxes, depreciation and amortisation)-positive in the second half of 2022.
It had also trimmed its loss for the full 2022 to $261.1 million from about $1.2 billion in 2021. Sembmarine said the net loss was impacted by one-off cost increases from residual Covid-19 challenges.
No dividend was declared for the period under review.
Turnover for the second half of 2022 fell 16.3 per cent to $852.2 million from $1 billion. The group attributed this to lower revenue recognition from rigs and floaters and offshore platform projects which are nearer to completion.
This was, however, mitigated by higher contributions from the repairs and upgrades business.
Full-year revenue came in at $1.9 billion, up 4.6 per cent from fiscal year (FY) 2021.
Sembmarine said in its results announcement that the “strong execution and delivery of projects” had also helped it cut its losses.
Sembmarine said it had a total of 21 projects under execution during FY2022, of which 12 key projects were scheduled for delivery in the course of the year.
All 12 have been completed and delivered, the company said.
Sembmarine’s new contract wins totalled just over $7 billion in FY2022, and its net order book of ongoing projects rose to $6.75 billion as at end-2022.
With the progressive completion of these projects, resources have been freed up and redeployed to other existing projects, including newly won newbuild and conversion solutions.
“Overall, the group’s operational and financial performance improved significantly with the progressive resolution of Covid-19 challenges. This enabled smoother completion of projects, and prudent management of costs and overheads,” said Sembmarine.
As at end-2022, Sembmarine had a total of nine projects scheduled for delivery between 2023 and 2026.
Looking ahead, the company said the industry outlook for the oil and gas industry, offshore renewables and other green solutions continues to improve amid the ongoing energy transition.
Citing the proposed combination with Keppel Offshore and Marine that was approved by Sembmarine shareholders, the company said the enlarged group will commence the implementation of integration initiatives.
“The enlarged group will have a combined order book of about $18 billion, with completions scheduled from 2023 to 2026.
“With improving order visibility, the enlarged group will be in a stronger position to convert its order pipeline into further firm contracts,” said Sembmarine.
Shares of Sembmarine fell 0.8 per cent to close on Monday at 12.7 cents. THE BUSINESS TIMES
