SembMarine back in the black for Q4

SEMBCORP Marine returned to the black for its fourth quarter, despite revenue tumbling by 37.5 per cent, as gross profit margins improved.

Net profit was S$34.3 million, a reversal from a net loss of S$536.9 million in the previous year, the group said in a Singapore Exchange filing on Wednesday evening.

For the three months ended Dec 31, revenue dropped 37.5 per cent to S$829.9 million from the previous year. The decline in revenue was due mainly to lower revenue recognition for rig building projects because of customers' delivery deferment requests, as well as for offshore platform projects and lower repair business, it said.

Earnings per share came in at 1.64 Singapore cents, a reversal from a loss per share of 25.7 Singapore cents in the previous year.

The group is proposing a final dividend per share of one Singapore cent, against two Singapore cents in the previous year. This brings total dividend for the 2016 financial year to 2.5 Singapore cents - representing a dividend payout ratio of 66 per cent - from six Singapore cents previously.

SembMarine said that while the prospects for the oil and gas industry have taken a more positive turn since November last year after major oil producers agreed to cut production, a more robust recovery may take longer.

"However, with increasing enquiries for non-drilling solutions, we foresee an earlier recovery in demand for fixed platforms, FPSO and FSO conversions and new-builds in the next few years," it said. "Rising global demand for gas also augers well for our broad-based LNG solutions and capabilities. We believe these are the key segments that will offer opportunities in 2017."