Sembcorp Marine Cuts Losses as Easing COVID Curbs Aid Project Deliveries

Thursday, August 11, 2022

Singapore's Sembcorp Marine Ltd (Sembmarine) said on Friday its half-year loss narrowed 78% from a year earlier, as the oil rig builder finished delayed projects after pandemic curbs were eased while also benefiting from cost management.

The company said its overall order visibility has improved on the back of rising oil prices and renewed concerns about energy security amid geopolitical tensions.

Sembmarine has been a loss-making business since it posted an annual loss in 2018, in an industry plagued by oil price volatility, a drop in new orders, and the pandemic's impact.

The company on Friday flagged an upbeat remainder of fiscal 2022 on the back of improving market conditions for the oil & gas and renewables businesses, but said it expected to post an annual loss.

Sembmarine posted a net loss of S$143 mln ($104 million) for the half year ended June 30, compared to a S$647 million loss recorded a year earlier.

The company is in the midst of obtaining regulatory nods for its S$8.7 billion merger with Keppel Corp's offshore and marine unit.


($1 = 1.3697 Singapore dollars)

(Reuters - Reporting by Savyata Mishra; Editing by Maju Samuel and Subhranshu Sahu)

Categories: Shipbuilding Finance Engineering Industry News Asia

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