This was due to a $571 million reduction in revenue of the group’s marine segment from 3Q16, bringing the marine segment's revenue for 3Q17 to $317 million.
Lower revenue recognition for rig building and offshore platform projects as well as reversal of revenue in 3Q17 due to termination of two rig contracts accounted for the marine segment’s lower turnover.
This was however offset by the turnover in the group’s utilities sector which grew 17% or $203 million to $1.4 billion, attributed to higher high sulfur fuel oil (HSFO) prices and higher contribution from India.
The utilities segment was the group’s largest net profit contributor, accounting for 82% of its net profit for the quarter.
Other operating income for 3Q17 increased by about $40.5 million to $44.4 million from $3.89 million last year, mainly due to foreign exchange gain and fair value gain of financial instruments in the quarter.
Finance costs for the third quarter ended September increased 39.8% to $126.7 million compared to $90.6 million last year, which was a result of higher bank borrowings in the marine segment and Sembcorp Gayatri Power’s (SGPL) finance costs, which were expensed in 3Q17 but capitalised in 3Q16 while under construction.
In its outlook, Sembcorp expects the market environment to remain challenging for the rest of 2017.
Shares in Sembcorp closed 2 cents lower at $3.38 on Thursday.
