SembMarine’s underlying problem largely lies with the company’s difficulty in finding new jobs. Last year, the company managed to secure new contracts worth only $1.49 billion. This was up 26.3% from $1.18 billion the year before. While the increase in new contracts is commendable, it is a far cry from the amount of new contracts it had obtained prior to 2015.
SINGAPORE (Mar 6): Despite an uptick in crude oil prices in 2019, a recovery in oil exploration and production activity was somewhat limited. This inevitably prolonged the downturn in the oil services industry, which has seen a glut of rigs and offshore platforms. Given the challenging environment, Sembcorp Marine (SembMarine) had to endure another difficult year.
For FY2019 ended Dec 31, SembMarine reported a y-o-y revenue decline of 41% to $2.88 billion. This came on the back of lower revenue recognition from rigs and floaters and offshore platform projects. As a result, the company remained in the red and posted a wider loss of $137.2 million. The accelerated depreciation of the company’s Tanjong Kling Yard also did not help.
