Sembcorp Marine Reports Record Shipyard Backlog While Profit Figures Drop 48%

SINGAPORE–Sembcorp Marine Ltd. (S51.SG) Monday reported a 48.1% fall in its third quarter net profit as revenue fell due to lower recognition of rig building projects.

Net profit for the quarter ended Sept. 30 was 115.5 million Singapore dollars (US$94.3 million), compared with S$222.5 million in the same quarter of last year, Sembcorp Marine said in a statement to Singapore Exchange.

Revenue fell 31.5% to S$892.4 million from S$1.30 billion, it said.

Offshore exploration and production spending continues to remain buoyant with discoveries in frontier areas and around the primary deepwater basins of the U.S. Gulf of Mexico, Brazil, East and West Africa and Nigeria, it said. “Overall, enquiries continue to be healthy although competition remains keen and affects margin.”

The company has secured contract orders worth a total of S$9.1 billion so far this year, taking its net order book to a record high of S$12.1 billion, with deliveries extending till 2019, according to the statement.

– Gaurav Raghuvanshi, (c) 2012 Dow Jones & Company