SembMarine Q1 profit down 48.2%

SEMBCORP Marine saw its first quarter net profit fall 48.2 per cent to S$54.83 million mainly on lower turnover and higher finance costs.

Turnover was down by 29.6 per cent to S$918.43 million largely due to lower revenue recognition for rig-building projects resulting from customer deferment requires and customer restructuring.

Gross profit declined 52.3 per cent to S$80.6 million.

Finance costs were sharply up by 87.4 per cent on higher interest expense from higher bank borrowings compared to the corresponding quarter in 2015.

Earnings per share fell 48.1 per cent to 2.63 Singapore cents, down from 5.07 Singapore cents.

Sembcorp Marine shares closed at S$1.67, down 0.5 Singapore cent before results were released on Wednesday.