SembMarine buoyant earnings

SembCorp Marine in Singapore has reported a 69% year-on-year increase in its first half profit to over $62 million. For the second quarter alone, its net profit rose 66% to nearly $37 million, while revenue more than doubled to $657 million. The company is benefiting from the growing demand for offshore drilling rigs.

New orders secured this year to date stood at $1.2 billion, while its order book at June stood at $3.8 billion. SembCorp Marine is also seeing strong demand for ship repair.

Said Tan Cheng Tat, chief financial officer, SembCorp Marine, “Ship repair demand remains strong especially in the specialised market of LNG/LPG gas tankers, container vessels and rig repairs. Market fundamentals for FPSO vessels and FSO vessels continue to strengthen. These are driven by high oil prices and the increase in worldwide exploration and production activities. Fundamentals for the rig building sector are also strong. This is due to the high worldwide utilisation levels, unprecedented charter rates as well an aging rig fleet.”

Going forward, SembCorp Marine expects the overall performance for the full year to be stronger than last year’s.