Weaker marine earnings drag down results at Sembcorp Industries

A DROP in earnings at its marine division hit the bottom line at Sembcorp Industries in the fourth quarter.

Net profit for the three months to Dec 31 was $204.7 million, down 18.7 per cent on the $251.9 million recorded a year earlier.

The hit came mainly from the marine division, which contributed less profits due to the lower margins from new-design rigs.

Revenue climbed 25.4 per cent to $2.82 billion for the quarter, with all divisions reporting higher turnover.

The earnings drop would not have come as a big surprise to market watchers, especially after the firm's listed marine unit, Sembcorp Marine, said last week that fourth-quarter earnings fell 27 per cent.

Earnings per share for the fourth quarter were 11.46 cents, down from 14.12 cents in the same period last year. Net asset value per share was $2.52 as at Dec 31, up from $2.31 a year earlier.

Net profit for the full year fell 6.9 per cent to $753.3 million although turnover rose 12.6 per cent to $10.19 billion.

The firm has recommended a final dividend of 15 cents per share.