Sembcorp Marine (SembMarine) has posted a net loss of $143 million in the 1HFY2022 ended June, 78% narrower than the net loss of $647 million in the same period the year before.
The loss during the period was due to lower than breakeven activity volume as existing orders are completed and new orders secured in 1H2022 would start contributing to revenue mainly in subsequent periods.
Revenue increased by 29.7% y-o-y to $1.09 billion due to significantly higher revenue recognition from floater projects due to the settlement of final contract negotiation upon completion and contributions from new project. The increase was offset by lower repairs & upgrades business and lower revenue recognition from offshore platform projects which are nearer to completion.
Group loss narrowed by 84.2% y-o-y to $92.9 million mainly due to the higher revenue and offset by lower contributions from the group’s repairs and upgrade business due to Covid-19.
1HFY2022 EBITDA narrowed 97% y-o-y to $19 million.
During the period, loss per share stood at 0.46 cents, while SembMarine’s net asset value (NAV) per share fell by 3% h-o-h to 12.32 cents.
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Cash and cash equivalents stood at $1.42 billion as at June 30.
As at June 30, SembMarine’s net order book stood at $2.52 billion, which comprises $2.2 billion of projects under execution and $0.3 billion of ongoing repairs and upgrades projects.
The group has also recorded a growing share of renewables and cleaner/green solutions in its order book, with renewable wind energy and other cleaner and green solutions accounting for 74% as at June 30 compared to the 43% at the end of 2021.
“As you know, our industry is evolving extremely rapidly. We have taken concrete steps in the past years to position Sembcorp Marine at the centre of the global energy transition to a low-carbon economy. The industry outlook for the oil & gas, renewables and other green solutions continues to improve. There are exciting opportunities ahead,” says SembMarine’s president & CEO Wong Weng Sun.
“We have secured $1.9 billion worth of new orders in 1HFY2022. With improving orders visibility, we are working on multiple tender opportunities and actively converting orders pipeline into firm contracts. We anticipate operational and financial performance to continue to improve in tandem,” he adds.
In its outlook statement, SembMarine adds that it expects to make a loss in the FY2022 even if it anticipates operational and financial performance to continue to improve.
Shares in SembMarine closed flat at 11.9 cents on Aug 11.
