Sembmarine records 3 straight years of losses, but meets criteria to avoid watch list

MARINE and offshore engineering group Sembcorp Marine (Sembmarine) on Tuesday (Mar 29) gave notice that it recorded 3 consecutive years of pre-tax losses, based on its audited full-year consolidated accounts.

The group's 6-month average daily market capitalisation was S$2.6 billion as at Mar 28, which means the group still meets the financial entry criteria to avoid being placed on the Singapore Exchange's (SGX) watch list.

Firms are placed on the SGX watch list if they record losses for the 3 latest consecutive financial years and have an average daily market cap of under S$40 million over the last 6 months.

Prior to its announcement, Sembmarine had ended Monday at a 7-month high of S$0.103, up 9.6 per cent or S$0.009.

On Mar 23, the group announced that its wholly-owned subsidiary won a contract to construct a wind turbine installation vessel. It did not disclose the value of the contract.

In February, Sembmarine posted a net loss of S$523.3 million for its second half ended December 2021, widening from a S$390.4 million loss a year earlier, as challenges from the Covid-19 pandemic weighed on its operations.

Sembmarine has been issuing notices for 3 consecutive years of pre-tax losses for the past 2 years. Its 6-monthly average daily market capitalisation was S$1.9 billion as at Mar 30, 2021, and S$2.4 billion as at Apr 2, 2020.