marine rig sembcorp shipbuilding

Sembcorp Shipbuilding: “Fundamentals for the Offshore O&G Industry Remain Intact”

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February 23, 2012

SINGAPORE (Dow Jones)–Sembcorp Marine Ltd.’s (S51.SG) fourth-quarter net profit fell 4.3% mainly because of lower operating profit from rig building, it said Thursday.

Net profit for the quarter ending Dec. 31 fell to S$229.0 million from S$239.4 million a year earlier, Sembcorp Marine said in a statement to the Singapore Exchange. The result was better than the S$195.2 million average net profit predicted in a Dow Jones Newswires poll of seven analysts.

Revenue during the quarter was S$997.6 million, up 1.5% from S$982.9 million, mainly thanks to revenue recognition from ship conversion and offshore projects. The top-line result was worse than the S$1.20 billion tipped in the poll.

“Despite the global macro-economic uncertainty, fundamentals for the offshore oil-and-gas industry remain intact, underpinned by healthy oil prices and projected increases in exploration and production spending,” the statement said.

“The offshore market continues to display signs of cyclical improvement, especially in the deep- and ultra-deep-water segments fueled by the growing needs of operators in multiple regions, in particular the ‘Golden Triangle’ of Brazil, the Gulf of Mexico and West Africa,” the company said.

Net profit for the full year fell 12.6% on year to S$751.9 million compared with S$860.3 million.

The rig builder currently has a net order book of S$6.3 billion with completion and deliveries stretching until the second quarter of 2015.

-By Matthew Allen, Dow Jones Newswires

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