SembMarine up on rig, platform work

Rig and platform construction buoyed Singaporean yard SembCorp Marine in the first half as net profit climbed 4%.

The contractor made a net profit of S$254 million (US$203.77 million) in the first six months of the year, as compared with S$244 million a year earlier.

Revenues soared 23% from S$2.17 billion to S$2.68 billion, with rig-building revenues up 36% from S$1.23 billion to $1.67 billion.

The yard delivered six jack-up rigs in the period and had eight others under construction.

The fixed platform division chipped in S$535 million of revenues, a 30% year-on-year climb from S$413 million.

The offshore vessel and conversion division, however, saw revenues slump 40% from S$206 million to S$123 million, while shiprepair was down 2%.

SembMarine’s net orderbook at the end of the half-year period stood at S$12.7 billion, with deliveries stretching out to 2019.

“Long-term fundamentals driving the offshore exploration and production market remain stable,” SembMarine said on Monday.

“However, slowdown in capital expenditure may impact new orders and keen competition continues to exert pressure on margins.

“The strong underlying trend toward high specification, harsh environment jack-up drilling units and deep-water and ultra-deepwater floaters is expected to drive offshore capex spend, and the group is well positioned to benefit given its broad product offering and strong execution track record.

“The pipeline for new projects is encouraging, based on robust enquiry levels.

It continued: “Overall, our repair business continues to see increase in market share. However, despite the larger number of vessels, the average revenue per ship remained low in view of market conditions.”

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