SINGAPORE (Dow Jones)–Sembcorp Marine Ltd. (S51.SG) said Thursday that its third-quarter net profit fell 25% from a year earlier due to weaker margins from jack-up rig building projects.
Net profit for the three months ended Sept. 30 fell to S$223 million from S$296 million in the same period last year, the company said in a statement to the Singapore Exchange.
It said profits were lower as nine of the 13 new jack-up rigs secured since the fourth quarter of last year were still in the planning stage.
Revenue rose 17% to S$1.3 billion from S$1.11 billion due to resumption of revenue from Songa Eclipse rig and higher contributions from ship conversion projects.
The company said it had orders in hand worth S$5.2 billion that will keep its shipyards busy until the second quarter of 2014.
“Despite the macro conditions, the medium- to long-term fundamentals for the offshore oil and gas industry remain intact, with exploration and production expenditure by oil majors and national oil companies expected to increase further into 2013, especially for the deep and ultra-deepwater segments,” it said.
-By P.R. Venkat, Dow Jones Newswires