Tuesday, November 6, 2012

Sembcorp Marine's quarterly profit plunges

SINGAPORE - Sembcorp Marine yesterday reported its third-quarter net profit plummeted 48.1 per cent from the corresponding period a year earlier mainly due to the timing of revenue recognition of its rig building projects.

Net profit for the three months ended Sept 30 was S$115.5 million as revenue fell 31.5 per cent to S$892.4 million, it said.

But the outlook remains positive for the world's second-largest rig builder. Offshore exploration and production spending continues to remain buoyant with discoveries in frontier areas and around the deepwater basins of the Gulf of Mexico, Brazil, East and West Africa and Nigeria.

"Overall, enquiries continue to be healthy although competition remains keen and affects margin," it added.

Sembcorp Marine has secured orders worth a total of S$9.1 billion so far this year, taking its net order book to a record high of S$12.1 billion, with deliveries extending till 2019.

Before the earnings announcement, Sembcorp Marine shares fell 1 cent to close at S$4.69. AGENCIES

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