Sembcorp Marine achieved a 1% year-on-year increase in net profit from $556 million to $560 million for the year ended December 31 2014, despite challenging market conditions, the company said in its press release. Group turnover for the year FY2014 grew 6% year-on-year to $5.8 billion, which compares with $5.5 billion for the corresponding period in 2013.
The higher revenue came mainly from increased contribution from the Group’s rig building activities and from offshore platform projects. In FY2014, Group EBITDA (earnings before interest, tax and depreciation) increased by 10% year-on-year to $822 million, while operating profit grew 10% to $707 million, from $644 million in the previous corresponding period.
At the pre-tax level, Group profit of $707 million was 7% higher than the $661 million achieved in the previous year. Associate and joint venture income declined 12% year on year to $9.9 million. Turnover for the Rig building sector increased 6% year on year from $3.6 billion to $3.8 billion.
The Group delivered eight jack-up rigs for the 12 months ended December, with another ten rigs in the work in progress or planning stage. The Fixed platform segment registered a 6% increase in revenue from $868 million to $925 million for the year, with three major project deliveries in FY2014.
Offshore and conversion revenue increased 28% from $336 million in FY2013 to $428 million in FY2014, with three project deliveries during the period. Ship repair revenue was 9% lower at $622 million in FY2014 compared with $681 million in the corresponding period in 2013 as average revenue per vessel remained low although the number of ships repaired has increased.