SINGAPORE (July 27): Sembcorp Marine's earnings for the second quarter ended June sunk 51.2% to $5.6 million from $11.5 million a year ago.
This bring earnings for the first half of 2017 to $45.1 million, down 31.9% from $66.3 million in 1H16.
On a quarterly basis, net profit for 2Q decreased mainly due to lower revenue, as well as foreign exchange translation loss on the USD borrowings for SembMarine’s Brazil yard.
Revenue fell 27.8% to $655.5 million in 2Q17, from $908.5 million a year ago. This was mainly due to the lower revenue recognition for rig building and offshore platforms projects.
Cash and cash equivalents stood at $1.01 billion as at June 30, 2017.
SembMarine has recommended an interim dividend of 1.0 cent per share, which will be paid on Aug 29, 2017. This is 33% lower than the interim dividend of 1.5 cents per share a year ago.
Looking ahead, SembMarine says global exploration and production spending is expected to increase, even though a more robust recovery is likely to take longer.
Shares of Sembcorp Marine closed 2 cents lower at $1.74 on Thursday.
