Rig Builder Sembcorp Marine 2Q Net Profit Falls 51%
SINGAPORE, July 27 (Reuters) - Singaporean rig builder Sembcorp Marine Ltd on Thursday posted a 51 percent fall in second-quarter profit because of a slowdown in orders and foreign exchange losses.
The company, along with rival Keppel Corp, has been hit by an oversupply of offshore oil drilling rigs, with customers delaying contracts and refraining from placing new orders with oil prices expected to stay lower for longer.
Sembcorp Marine reported a profit of S$5.6 million ($4.13 million) for the three-month period ended June, compared with S$11.5 million a year ago.
The company, majority owned by industrial conglomerate Sembcorp Industries Ltd, said revenue dropped 28 percent to S$655 million.
"Global exploration and production spending is expected to increase. Offshore day rates appear to have stabilized and utilization levels have begun to improve," said Wong Weng Sun, the company's chief executive officer. "However, a more robust recovery will take longer."
The company also cut its first half interim dividend to 1 Singapore cent per share, compared with 1.5 Singapore cents per share last year.
($1 = 1.3574 Singapore dollars)
(Reporting by Aradhana Aravindan; Editing by Christian Schmollinger)
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