Sembcorp Marine 1Q net profit S$113.1 million
Sembcorp Marine Ltd. (S51.SG) Wednesday reported a 24.9% decline in first-quarter net profit, mainly due to lower value and lower margin contracts for new-design jack-up rigs, compared with repeat-design contracts for larger semi-submersible rigs secured last year.
The marine engineering arm of conglomerate Sembcorp Industries Ltd. (U96.SG) said in a statement to Singapore Exchange that net profit for the three months ended March 31 was S$113.1 million, down from S$150.6 million a year earlier.
Sembcorp Marine, one of the world's largest rig builders by market share, said revenue rose 13.7% to S$942.6 million from S$828.9 million, which came from the group's rig building, ship conversion and offshore sectors.
The group has a net order book of S$7.4 billion with completion and deliveries stretching until the second quarter of 2015, it said. This includes US$3.0 billion in contract orders secured since the start of 2012, excluding ship repair contracts.
"Despite the mixed global macroeconomic outlook, the fundamentals driving the offshore and marine activities remain strong, driven by sustained high oil prices, increased exploration and production spending budgets of oil companies and significant exploration successes in oil and gas finds in recent months," the company said in the statement.
Revenue from its rig building operations rose 23.4% from a year earlier to S$393.4 million, while its offshore and conversion business had revenue of S401.0 million, up 12.6% on the year.
The company said the market for premium jack-up rigs "continues to be active with oil companies remaining focused on safety and efficiency gains offered by newer and higher specification units."
Since the start of the year, the company has secured orders for three high specification jack-up rigs with a total value of US$639.5 million.