Singapore’s Sembcorp Marine has warned that some offshore projects already under construction at its yards could be cancelled.

“Although there has been no cancellation to date of any of the group’s existing projects, project delays have been extended, with increased risk of terminations,” it said last week.

To mitigate the risk of cancellations, the offshore and marine contractor has been coordinating with customers “to reach mutually beneficial outcomes of project rescheduling and deferment in payments”.

However, Sembmarine confirmed that the financial performance and health of some of its customers have been severely affected and acknowledged that any deferral in cash collections from their projects would impact its own near-term liquidity position.