Rig projects bring in more revenue for SembMarine

Sembcorp Marine has reported a solid rise in third-quarter net profit after recognising more revenue from its rig-building projects and reaping some foreign exchange gains.

Earnings for the three months to Sept 30 rose 12.3 per cent to $129.68 million, compared with the same period last year.

The bottom line was aided by a $12.41 million foreign exchange gain, reversing a $14.82 million foreign exchange loss last year as the company revalued assets denominated in euro and US dollars to the Singapore dollar.

Revenue rose 85.9 per cent to $1.66 billion for the quarter thanks to higher revenue contributions from the rig-building and repair sectors.

"A total of five rigs - comprising a well intervention semi-submersible rig, a harsh-environment semi-submersible rig and three jack-up rigs - achieved initial recognition in the third quarter of 2013," said SembMarine in a statement.

Only one jack-up rig achieved initial revenue recognition in the same period last year.

The top line for the three months was also boosted by an increase in repair revenue as the new integrated yard in Tuas started operations on Aug 5.

Earnings per share for the quarter were 6.21 cents, up from 5.53 cents in the same period last year.

Net asset value per share was $1.21 at Sept 30, from $1.17 at the end of last year.

SembMarine's earnings inched up 0.5 per cent to $373.3 million for the nine months to Sept 30 as revenue rose 25.6 per cent to $3.83 billion.

The company said it secured contract orders worth a total of $3.9 billion - excluding repairs - since the start of the year, growing its net order book from $12.7 billion at the end of last year to $13.5 billion now.

Completion and deliveries extend till 2019.

"The long-term industry fundamentals for the offshore and marine sector remain sound, underpinned by exploration activities with increasing interests in harsh environment and field development programmes," said SembMarine's statement.

"Demand for high-specification and ultra-deepwater rigs with advanced technical features are expected to remain strong.

"Sembcorp Marine, with its track record and proven capabilities, is well-positioned to benefit from the opportunities in this sector."

The results were announced after the markets closed. SembMarine's shares rose one cent to $4.50 on Tuesday.

jonkwok@sph.com.sg

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