Sembcorp Marine issues profit warning

  • Exploration & Production

Sembcorp Marine Ltd, a Singapore-based offshore rig builder, has issued a profit warning for the upcoming quarter and the full year 2015.

The company, also known as Sembmarine, said that it expected to record a net loss for the fourth quarter ending December 31, 2015, a significant decline in the net profit for the full year ending December 31, 2015.

“With reference to disclosures given during the first three quarters in 2015 regarding the challenging operating environment and customers deferring or seeking to defer their rig orders, the results for the 4Q2015 and FY2015 will be materially negatively impacted,” Sembcorp Marine said in a statement on Tuesday.

Sembcorp Marine will release its 4Q and full-year 2015 results in February 2016 when it is expected to provide more info.

In the past week, the company has found itself under the spotlight over a contractual dispute with Marco Polo Drilling company. Namely, Marco Polo has terminated a rig construction contract with Sembmarine’s PPL Shipyard over the cracks found on the newbuild rig’s legs. In response, PPL Shipyard accused the driller of contract breach. Read more on that here:

Offshore Energy Today Staff

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