Singapore Rig-Builder Sembcorp Marine Says to Record 4Q Net Loss

Reuters

SINGAPORE, Dec 1 (Reuters) – Singapore's Sembcorp Marine Ltd said on Tuesday it is expected to record a net loss for the fourth quarter due to a challenging operating environment and customers deferring or seeking to defer their rig orders.

The company, one of the world's largest offshore drilling rig producers, also said in a statement it expects a significant decline in net profit for the full year ending Dec. 31.

The global rig market has been badly hit by exploration and production budget cuts at oil companies which have not only weighed on charter rates, but also reduced the number of drilling projects available.

Sembcorp Marine's third-quarter net profit plunged 76 percent on the year to S$32.1 million ($22.8 million) – its lowest quarterly earnings since the last three months of 2007.

($1 = 1.4101 Singapore dollars)

(Reporting by Saeed Azhar; Editing by Jacqueline Wong)

Copyright 2016 Thomson Reuters. Click for Restrictions.

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