Sembmarine's Q1 revenue hit by Covid-19, oil price collapse

Singapore

HIT hard by the double whammy of the Covid-19 pandemic and the collapse in oil prices, Sembcorp Marine (Sembmarine) will be deferring all non-essential capital expenditures (capex) to preserve cash flow and manage overall liquidity with pru-dence and discipline.

Industry-wide cuts to capex have affected the group's ongoing negotiations for the finalisation of new orders. This, coupled with delays in executing existing orders, has led to lower revenue recognition, Sembmarine said on Wednesday in its business update for the first quarter of 2020.