SembMarine Q3 loss widens to S$52.6m

RIG builder Sembcorp Marine (SembMarine) saw its net loss widen to S$52.6 million for its third quarter ended Sept 30, from a S$29.8 million net loss a year ago.

This was mainly due to additional costs for rigs and floaters projects, as well as continued low overall business volume which impacted the absorption of overhead costs, offset by margin recognition from newly secured production floater projects and rig delivery.

Loss per share stood at 2.52 Singapore cents for the quarter, from 1.42 cents a year ago, according to its results released on Wednesday morning.

Revenue for Q3 fell 38.6 per cent to S$717.2 million, from S$1.17 billion a year ago, mainly due to lower revenue recognition from rigs and floaters projects.

Excluding the effects of delivery of two jack-up rigs to Borr Drilling in the third quarter of 2018, revenue would have been S$773 million, the group said.

No dividend was declared for the quarter, unchanged from a year ago.

On outlook, the group is expecting losses to continue into the fourth quarter, and the full year loss to be higher than last year's.

It added that challenges in the offshore and marine sector persist and competition remains intense.

Activity levels in all segments meanwhile "remain low" except for repairs and upgrades which continues to improve. This is underpinned by the cruise ship segment, and IMO (International Maritime Organization) regulations that require the installation of ballast water treatment systems and gas scrubbers, it added.

SembMarine shares closed at S$1.34 on Tuesday, up one Singapore cent or 0.8 per cent, before the results were announced.