SembMarine expects protracted O&M down-cycle

Singapore

SEMBCORP Marine is expecting the down-cycle in the offshore & marine industry to be more protracted than in previous cycles. The offshore & marine player said this on Wednesday as it posted a 48.2 per cent year-on-year plunge in first-quarter net profit to S$54.83 million amid sharply lower turnover and gross profit margin. This translated to earnings per share of 2.63 Singapore cents, down from 5.07 Singapore cents.

For the three months ended March 31, turnover fell 29.6 per cent to S$918.43 million, from S$1.3 billion a year earlier, as lower revenue recognition from rig-building projects more than offset higher contributions from floaters and offshore platforms.