Results for FY2015
- FY2015 net profit of $384 million, before impairment, provisions, and share of losses of associates and joint ventures
- FY2015 net loss of $290 million
- Revenue totalled $4.97 billion, down 15% from FY 2014’s $5.83 billion.
- FY2015 net profit of $384 million before:
- Impairment and provisions of $609 million for rigs including $329 million for Sete Brasil drillship projects
- Share of losses of associates/JVs of $192 million.
- Total dividends per share of 6 cents, including an interim dividend of 4 cents and proposed final dividend of 2 cents.
- The Group secured $3.2 billion in new contracts in FY2015, bringing total net order book to $10.4 billion as at end of FY 2015.
Singapore, February 15, 2016: Sembcorp Marine posted group revenue of $4.97 billion for the year ended December 31, 2015 (FY2015) compared with $5.83 billion previously. Turnover for Rigs & Floaters was $3.3 billion for the year to December 2015, a 21% decline from the $4.2 billion booked in the previous year. The Group delivered one jack-up rig, one well intervention semi-submersible and one accommodation semi-submersible during the year, compared with eight drilling rigs in the previous corresponding year.
Offshore Platforms revenue increased 10% year-on-year from $925 million in FY2014 to $1,017 million in FY2015. Despite an increase in the number of ships repaired, Repairs & Upgrades revenue declined 10% year-on-year from $622 million to $557 million due to lower average revenue per vessel reflecting tough competition in the segment.
The Group posted FY2015 net profits of $384 million, before $609 million in impairment and provisions for rigs including $329 million for Sete Brasil projects and $192 million for associate/joint venture losses. Sembcorp Marine views these provisions as prudent and necessary under present circumstances.
With the impairment and provisions, the Group recorded a net loss of $290 million for the year.
Group earnings was also depressed as customer requests for deferment for jackup rigs resulted in lower margin recognition for rig building projects. However, profits for offshore platforms and repair and upgrade businesses was higher.
4Q 2015 VERSUS 4Q 2014
On a quarterly basis, Group turnover for 4Q 2015 was $1.33 billion, 8% lower compared with $1.44 billion previously mainly due to the lower revenue recognition from rig building in the quarter. Contributions from Offshore Platforms and Repairs & Upgrades were higher.
Prior to impairment and provisions and share of losses from associates/joint ventures, 4Q2015 net profit would have been $99 million.
Interest-bearing borrowings increased mainly due to borrowings for working capital and capital expenditure. The Group has secured adequate committed long-term banking facilities to refinance the short-term borrowings as they fall due. Cash and cash equivalent decreased mainly due to capital expenditures and working capital changes for ongoing projects.
The Board of Directors recommends the payment of a final ordinary one-tier tax exempt dividend of 2.00 cents per share (8.00 cents previously). Together with the 4.00 cents paid during the interim results, total dividend paid is 6.00 cents, from 13 cents previously. The final dividend, if approved at the AGM on 18 April 2016, will be paid on 13 May 2016.
In FY2015, Sembcorp Marine secured S$3.2 billion in new orders, which represents a healthy replenishment of order books notwithstanding the challenging macro environment. With these new contracts, the Group’s net order book backlog as at 31 Dec 2015 stands at $10.4 billion.
Several of our customers have requested for delivery deferments in light of delays in chartering out their rigs. Given the current depressed environment in the upstream sector, we have tried to accommodate their requests, while preserving our commercial interests. As has been reported, one of our customers has failed to take delivery of its rig, and we have terminated the contract and taken legal action to recover the amount due to us. For the rest of our completed rigs with deferment requests, they have all been technically accepted by our customers and we have arrived at or are finalising mutually acceptable solutions with them.
The Group has made prudent impairment and provisions of $609 million in FY2015 for rig contracts, of which $329 million relate to Sete Brasil. Looking ahead, this down-cycle is expected to be more protracted than previous cycles. Sembcorp Marine believes that it is sufficiently prepared, not just to ride through the storm, but to lay stronger foundations for the future when the market recovers. The Group will continue to actively manage our balance sheet to maintain a healthy financial position.
The Group remains optimistic on the longer term prospects of its business as its facilities have been built to cater to the industry’s demand for the long term. As an integrated Sembcorp Marine, we will optimise our capabilities and capacities, as well as increase our efficiency and productivity to better serve our partners and customers.
For more information, please contact:
Ms Lisa Lee
Head of Investor Relations
Tel No: (65) 6262 7107
Mr David Wong
Head of Corporate Communications
Tel No: (65) 6262 8036
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