Sembmarine posts 17% drop in Q2 earnings

THE continued weakness in oil prices has hammered the earnings of rigbuilder Sembcorp Marine, which on Wednesday posted a 17 per cent year-on-year drop in net profit to S$109.23 million for the second quarter.

Revenue for the three months ended June 30, 2015, also tumbled 9.9 per cent from the previous year to S$1.21 billion, which the group put down mainly to lower revenue recognition from rig projects.

However, Sembmarine added in its statement that the drop could have been worse if not for higher revenue recognition from offshore and conversion projects as well as higher revenue from its ship-repair business.

Rig-building revenue, which was still the largest contributor to the overall topline, plunged 28.7 per cent to S$622.6 million in the quarter from the preceding year.

Earnings per share fell to 5.23 Singapore cents in Q2, down 17 per cent from 6.3 Singapore cents the previous year. Net asset value per share stood at S$1.4604 as at June 30, up slightly from S$1.4192 as at Dec 31, 2014.

The group declared an interim dividend of four Singapore cents per share, lower compared with the five Singapore cents paid out the previous year.

Sembmarine shares retreated S$0.02 to finish at S$2.71 on Wednesday before the results were released.