SINGAPORE (Oct 25): Sembcorp Marine posted a net loss of $21.8 million for 3QFY16, compared with earnings of $32.1 million in 3QFY15.
For the nine month period, earnings fell 82% to $44.5 million, on the back of a 25.4% drop in revenue to $2.7 billion.
In the quarter to Sept, revenue declined 21.4% to $888 million, as customers requested for delivery deferment in its rig building projects and the group saw lower volumes in its repair business.
However, there was a 39.1% increase in its offshore platform projects business to $326.4 million, which mitigated the group’s results during the quarter.
The group recorded an $18.9 million foreign exchange net loss due to the revaluation of its assets denominated in GBP into SGD during the quarter, compared with a net gain of $35.1 million in 3QFY16.
While general and administrative expenses fell 23.8% to $33.8 million, finance costs rose 85.7% to $22.5 million from higher bank borrowings. The group also recorded a 13.3% increase in share of losses from associates to $27.7 million.
SembMarine said on Tuesday that the macro environment remains “challenging”, and the recovery of the oil and gas sector is expected to be “long drawn”.
While the group’s cash flow and balance sheet has improved during the quarter from project deliveries and milestones achieved, SembMarine says it will continue to focus on liquidity, costs and balance sheet management through the management of its manpower requirements.
It will also monitor the developments at Sete Brasil, which has filed for judicial restructuring on Apr 29.
The group did not declare any dividends for the current financial period.
Shares in Sembcorp Marine closed 1.1% lower at $1.32 on Oct 25.
