Image courtesy Sembcorp

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

Source: http://gcaptain.com

From offshoreenergytoday... ...

Singapore: Sembcorp’s Full-Year Profit Down 13%

Singapore based Sembcorp Marine reported full year net profit at $752 million amid a volatile and uncertain macroeconomic environment that affected the global markets. Group net profit was 13% lower than in 2010 with earnings per share at 36.13 cents. Return on equity was 30%.

Group turnover at $3,960 million was 13% lower compared with that in 2010. This was attributable to the timing, number and value of the projects in varying progressive revenue recognition stages in the three different sectors of rig building, ship conversion & offshore and ship repair.

For the rig building sector, revenue was down 28% from $3.05 billion to $2.21 billion. Three turnkey semi-submersible rigs and two non-turnkey semi-submersible rigs, the resumption of revenue recognition on delivery of Petro Rig III semi-submersible rig and the sale of a CJ-70 harsh environment jack-up rig contributed to the higher turnover in 2010. In comparison, 2011 saw seven of a total of thirteen new jack-up rigs achieving revenue recognition and one unit semi-submersible rig, the Songa Eclipse resuming revenue recognition upon completion and delivery in 3Q.

The ship conversion and offshore sector registered a 31% increase in revenue from $820 million to $1,073 million. The sector saw a total of five deliveries with six other projects in varying stages of construction and five units in the planning stage.

Ship repair revenue in 2011 was $644 million, comparable to the $646 million previously achieved. 264 vessels were repaired with an average value of $2.44 million per vessel.

Group net profit for 2011 at $752 million was 13% lower as compared with $860 million in 2010 due to lower operating profit from rig building projects as well as the receipt of the full and final amicable settlement of the disputed foreign exchange transactions with Societe Generale in 2010. This was offset by the higher interest income received in 2011 for deferred payment granted to customers and write-back of prior years’ tax over-provisions.

Source: http://www.offshoreenergytoday.com

Sembcorp reports 13% fall in profits

Sembcorp Marine has reported a 13% fall in net income to $752 million for 2011, citing the volatile and uncertain macroeconomic market for the dip.

Bill Lehane   23 February 2012 11:53 GMT

Sembcorp Marine posts better-than-expected Q4 earnings

Posted: 23 February 2012 2206 hrs

SINGAPORE: Sembcorp Marine has booked a net profit of S$229 million for the fourth quarter, beating market expectations.

This is, however, 4 per cent lower than in the same period a year ago - due to lower operating profit from rig building projects.

Revenue rose by 2 per cent on-year to S$998 million.

For the year as a whole, in 2011, net profit shrank by 13 per cent to S$752 million.

SembMarine's ship repair and conversion as well as offshore capacity will almost double from the current 1.9 million deadweight tonnes when a new yard in Tuas becomes operational in 2013.

Looking ahead, the company is confident its rig building business would continue to rake in the biggest share of turnover.

Tan Cheng Tat, CFO of Sembcorp Marine, said: " In the US, Gulf of Mexico, deep water drilling activity remains robust, as operator continues to move ahead with drilling programmes. Day rates for both the jack ups, and semi-submersible rates have also been strengthening."

- CNA/cc

Sembcorp Marine: Post Full Year 2011 Net Profit At $752 Million.

Sembcorp Marine recorded full year net profit at $752 million amid a volatile and uncertain macroeconomic environment that affected the global markets. Group net profit was 13% lower than in 2010 with earnings per share at 36.13 cents. Return on equity was 30%. Group turnover at $3,960 million was 13% lower compared with that in 2010. This was attributable to the timing, number and value of the projects in varying progressive revenue recognition stages in the three different sectors of rig building, ship conversion & offshore and ship repair...Attachments:

• SCMFY2011PressRelease23Feb2012.pdf