Lower rigbuilding revenue drags down Sembcorp Marine Q1 earnings

Lower rigbuilding and repair revenue combined with higher operating expenses dragged down first-quarter earnings for Sembcorp Marine, the world's second-largest rig builder.

Net profit for the three months to March 31 fell 13.6 per cent to S$105.9 million from the preceding year, the company said in a Singapore Exchange filing on Monday.

Turnover dipped 2.4 per cent to S$1.30 billion over the same period. It was weighed down by lower revenue recognition for rig building projects and lower average revenue per vessel repaired despite an increase in the number of ships repaired, the company said. Sembcorp Marine also racked up higher operating expenses, mainly due to a foreign exchange loss.

Earnings per share fell to 5.07 Singapore cents in Q1 from 5.87 cents the previous year. However, net asset value per share rose to S$1.487 as at March 31 from S$1.4192 as at Dec 31, 2014.

Sembcorp Marine shares fell nine cents to S$3.01 before results were released on Monday.