SembCorp announces 1Q results

The Singapore-based shipyard, SembCorp Marine, has posted a 13% rise in first-quarter net profit to $14.5 million. The increase was helped by record oil prices which fuelled demand for the company?s services.

Turnover was up 83% to $272 million, boosted mainly by new building and conversion work. SembCorp says it’s optimistic about its prospects this year and, given its strong orders book, it expects a higher operating profit for 2005.

Ship repair market is expected to remain buoyant while rig building demand should also be strong due to the ageing rig fleet and high oil prices.

The company also expects its investment in Cosco Shipyard Group to start contributing to revenues this year. It bought a 30% stake in China’s largest ship repair company last July for just under $30 million.