Singapore-based Sembcorp Marine reported a 17% year-on-year decline in revenue from US$3.1 billion (S$4.4 billion) to $2.57 billion (S$3.6 billion) for the nine months to September 2015, due to lower revenue recognition for rig building projects and ship repair.
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Image: Steel cutting demonstration at the Tuas Boulevard yard workshop / Sembcorp |
Contributions from offshore platform projects, however, were higher, Sembcorp said.
Turnover for rigs and floaters was nearly $1.8 billion (S$2.5 billion), a 21% decline from the $2.2 billion (S$3.1 billion) booked in the previous corresponding period. Three rigs were delivered in the reporting period, compared to six rigs previously.
Offshore platforms revenue decreased 4% from $539 million (S$755 million) to nearly $516 million (S$722 million). Despite an increase in the number of ships repaired, repairs and upgrades revenue declined 15% from $332 million (S$465 million) to $283 million (S$397 million), because of lower average revenue per vessel.
“Some of our customers are deferring or are seeking to defer the delivery of their ordered rigs. These deferrals have now resulted in a delay in earnings recognition from these projects. Brazil’s oil and gas industry continues to remain fraught in uncertainty,” said Sembcorp in a statement.
Sembcorp also annoucned the opening of its new steel structure fabrication workshop in Singapore that the company says will boost the its steel fabrication capacity for future needs.
The 120,000sq m facility at the group’s Tuas Boulevard yard comprises of five bays for pre-treatment, cutting and assembly. It is ergonomically designed and will operate with a suite of computerized systems, mechanized steel cutting and welding equipment and high capacity cranes.
The streamlined process, Sembcorp says will reduce man-hours and production time to half of previous process requirements for every tonne of steel fabricated.
“This new facility will integrate with all other capabilities in our flagship Tuas Boulevard yard and allow us to more effectively offer customers a one-stop shop for offshore and marine engineering solutions,” said Sembcorp Marine president and CEO, Wong Weng Sun
“It is also a key feature of our ongoing development to turn the Tuas Boulevard yard into a high-tech production hub that underpins Sembcorp Marine’s ability to compete on value and scale.”
Sembcorp Marine focuses on four key capabilities across its global operations, namely, rigs and floaters, repairs and upgrades, offshore platforms and specialized shipbuilding.
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