Sembcorp Marine – Future Looks Strong in Deep and Ultra-Deepwater Segments

Petrorig 1 sembcorp semisubmersible drilling rig
PETRORIG I is the first of four ultra-deepwater dynamic-positioning 6th generation Friede and Goldman Ex-D design Millenium Class semi-submersible rigs constructed on a turnkey basis by Jurong Shipyard for Larsen Oil & Gas

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