Sembcorp Marine Net Profit Rises 12 Pct

Sembcorp Marine achieved a 3Q 2013 net profit of $130 million, 12% higher as compared with $116 million earned in the corresponding period in 2012. Third quarter Group operating profit grew 32%, or $41 million from $126 million in 3Q 2012 to $167 million in 3Q 2013. At pre-tax level, Group profit at $171 million was 23% higher as compared with $139 million for the same period in 2012.

Group turnover in 3Q 2013 was $1,659 million. This was 86% higher as compared with $892 million in 3Q 2012, attributable to higher revenue contributions from the rig building and repair sectors. Turnover from the rig building sector soared $714 million from $428 million in 3Q 2012 to $1,142 million in 3Q 2013. A total of five rigs comprising a well intervention semi-submersible rig, a harsh-environment semi-submersible rig and three jack-up rigs (two units of Pacific Class 400 rigs and one unit of F&G 3000N jack-up rig) achieved initial recognition in 3Q 2013. In comparison to the corresponding period in 2012, only one jack-up rig achieved initial recognition. The conversion and offshore sector registered a decline of 10% in turnover at $271 million in 3Q 2013 as compared with $300 million for the same period in 2012. The decline was due to timing in recognition of projects that achieved initial recognition and the value of the projects. For 3Q 2013, there was no initial recognition of project as compared with one major FSO conversion in 3Q 2012.

Turnover for the repair sector increased 34% from $153 million in 3Q 2012 to $204 million in 3Q 2013.

9M 2013 Vs. 9M 2012

On a nine-month basis, Group turnover for 9M 2013 grew 26% or $781 million from $3,052 million in 2012 to $3,833 million in 2013. Group operating profit was 12% higher at $456 million while gross profit at

$478 million was 8% lower as compared with $520 million in 9M 2012. Group pre-tax profit was 2% higher at $476 million in 9M 2013 as compared with $467 million in 9M 2012.
At net profit level, it was $373 million at 9M 2013 as compared with $371 million for the same period in 2012.

Outlook

The Group has secured contract orders worth a total of $3.9 billion (excluding repairs) since the start of the year, growing the Group’s net order book from $12.7 billion as at end 2012 to $13.5 billion, with completion and deliveries extending till 2019. The long-term industry fundamentals for the offshore and marine sector remain sound underpinned by exploration activities with increasing interests in harsh environment and field development programmes. Demand for high specification and ultra-deepwater rigs with advanced technical features are expected to remain strong. Sembcorp Marine with its track record and proven capabilities is well-positioned to benefit from the opportunities in this sector.
Sembmarine Integrated Yard @ Tuas
Sembmarine Integrated Yard @ Tuas commenced operations in August 2013. The integrated yard is equipped with 4 VLCC size drydocks with a total capacity of 1.55 million deadweight tonnes as well as finger piers and basin
lengths totalling 3.9 kilometres. The new yard is capable of undertaking FPSO conversions as well as servicing a wide range of vessels, including VLCCs, new generation of mega containerships, LNG carriers, cruise ships, semisubmersible rigs, offshore vessels and fixed

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Press Release, November 05, 2013