abce certificate
Monday, 01 December, 2008, 23:50 GMT | more >>

SembCorp profits slump on forex losses



By Upstream staff 

Singaporean contractor SembCorp Marine has posted a 99% drop year-on-year in net profit in the fourth quarter, on the back of its huge foreign exchange trading losses.

The company recorded a net profit of S$800,000 (US$569,000), including losses from foreign exchange deals, for the 2007 quarter compared with S$95.3 million in 2006.

For the full year, net profit came in at S$241 million, including the foreign exchange losses, versus S$238.4 million in 2006.

This came under the forecast average of S$343.6 million from 15 analysts polled by Reuters.

Excluding the foreign exchange losses, fourth quarter profit stood at S$309 million while profit for the full year came in at S$549.2 million.

The increase was attributed to continued high demand for vessels and drilling units.

Last October SembCorp alleged that former group finance director Wee Sing Guan had lost over $300 million by engaging in unauthorised foreign exchange deals, and added that it was not liable for the losses.

Earlier this month the company said it had settled its row with most of the banks involved for a reduced amount.

.


Friday, 22 February, 2008, 12:57 GMT  | last updated: Friday, 22 February, 2008, 14:50 GMT

e-mail this article to a colleague


to email:  from:
comments: