Sembcorp Marine's Rig Sector Posts 38% Revenue Increase to $948M

Sembcorp Marine Ltd. reported that its rig building sector posted a 38 percent rise in revenue from $689.3 million (SGD 870 million) to $948.3 million (SGD 1.197 billion) in the fourth quarter of 2013, with the increase due to the initial recognition of the second unit of the Group's repeat drillship design, one accommodation semisubmersible rig and two jackups, the company said when it released financial results Monday.

Turnover for the rig building sector in 2013 rose 51 percent to $2.283 billion (SGD 3.564 billion), up from $1.866 billion (SGD 2.356 billion) from a year ago. Sembcorp Marine delivered a total of 8 jackups comprising 4 proprietary Pacific Class 400 design series, 2 Friede & Goldman JU3000N design and 2 Friede & Goldman JU2000E design.

There was however a 5 percent decline in revenue from the ship conversion and offshore sector to $261.4 million (SGD 330 million) in 4Q 2013, compared to $248.7 million (SGD 314 million) in the corresponding period in 2012. The fall was attributed to the timing of projects that achieved progressive revenue recognition during the period.

The ship conversion and offshore sector's revenue fell 14 percent in 2013 to $953.9 million (SGD 1.204 billion) from the previous year's $1.105 billion (SGD 1.395 million), with the fall attributed to "the timing of projects coupled with lesser number of projects that achieved progressive recognition during the year," the company said in the press release.

Sembcorp Marine reported a marginal fall in its ship repair sector, with turnover down to $129.14 million (SGD 163 million) in 4Q 2013 compared to $132.31 million (SGD 167 million) last year as the decline was caused by the timing in recognition of repair and upgrade projects. Revenue for the sector in 2013 was 6 percent higher at $539.5 million (SGD 681 million), compared to $508.6 million (SGD 642 million) in 2012.

Overall, the firm posted a net profit of $144.1 million (SGD 182 million) in 4Q 2013, 9 percent over the previous year's $132.3 million (SGD 167 million). Sembcorp Marine's 2013 net profit increased 3 percent to $440.5 million (SGD 556 million), up from $426.2 million (SGD 538 million) a year ago on. Turnover for 2013 reached $4.378 billion (SGD 5.526 billion), a 25 percent jump from $3.509 billion (SGD 4.43 billion) in 2012.

Sembcorp now has a net order book of $9.745 billion (SGD 12.3 billion), with completion and deliveries stretching into 2019. This includes $3.327 billion (SGD 4.2 billion) in contract orders secured in 2013, excluding repair and upgrade contracts.   

Meanwhile, construction of Estaleiro Jurong Aracruz, Sembcorp Marine’s wholly-owned shipyard in Brazil, continues to progress well and the yard remains on track to commence initial operations in second half 2014.


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