Sembcorp Marine posts FY2015 net profit of $384 million
Sembcorp Marine posted group revenue of $4.97 billion for the year ended December 31, 2015 (FY2015) compared with $5.83 billion previously. Turnover for Rigs & Floaters was $3.3 billion for the year to December 2015, a 21% decline from the $4.2 billion booked in the previous year. The Group delivered one jack-up rig, one well intervention semi-submersible and one accommodation semi-submersible during the year, compared with eight drilling rigs in the previous corresponding year.
Offshore Platforms revenue increased 10% year-on-year from $925 million in FY2014 to $1,017 million in FY2015. Despite an increase in the number of ships repaired, Repairs & Upgrades revenue declined 10% year-on-year from $622 million to $557 million due to lower average revenue per vessel reflecting tough competition in the segment.
The Group posted FY2015 net profits of $384 million, before $609 million in impairment and provisions for rigs including $329 million for Sete Brasil projects and $192 million for associate/joint venture losses. Sembcorp Marine views these provisions as prudent and necessary under present circumstances.
With the impairment and provisions, the Group recorded a net loss of $290 million for the year.
Group earnings was also depressed as customer requests for deferment for jackup rigs resulted in lower margin recognition for rig building projects. However, profits for offshore platforms and repair and upgrade businesses was higher.
