Nonetheless, there are some positive aspects. For one, Sembmarine’s revenue from ship repair is deemed “surprisingly strong”, with $302 million booked, almost back to the pre-pandemic level of $360 million recorded for 2HFY2019.
With wider than expected losses reported for 2HFY2022, analysts prefer to keep a conservative view on Sembcorp Marine. However, with better prospects with the recent completion of the merger with Keppel’s offshore and marine business, they are hopeful the combined entity will see better days starting from FY2024.
Lim Siew Khee of CGS-CIMB notes that Sembmarine’s 2HFY2022 net loss of $118 million was worse than her projection of $88 million. This brings full year red ink to $261 million, which was 13% wider than her estimate, which was also 5% worse than the consensus view.
