Sembmarine paints less rosy picture in H2, cites higher labour cost, slower improvement in repairs and upgrades

OFFSHORE & marine giant Sembcorp Marine : S51 0% (Sembmarine) lowered its second half guidance compared to its expectations just three months ago, citing a “one-off” uptick in labour costs, lower than anticipated improvement in repairs and upgrades works plus delays in securing some projects.

“These are the various factors that contributed to the financial performance for the second half to be guided as what they are…it doesn’t necessarily mean it will be worst off than the first half but that is the guidance for this current quarter,” said Sembmarine group finance director William Goh at an analyst and media briefing on its third quarter and nine-month business update on Tuesday (Nov 15). 

On the back of that, Sembmarine said it expects second half FY22 losses to be similar to that for the first-half period.