31 Oct 2003

SembCorp Marine Posts A 1.3 Per Cent Increase In Group’s Attributable Profits Before Exceptional Items To $58.6 Million

SembCorp Marine Group’s turnover for period ended September 30, 2003 increased by 10.8% to $829.0 million. The increase was attributed mainly to the increase in both ship conversion and new building job volume. However, this increase was offset by a decline in ship repair revenue of $91.7 mainly due to the postponement of vessel repairs as a result of the high freight rates and the SARS outbreak experienced during the first half of 2003.

Financial Highlights

YTD

3Q2003

S$’m

3Q2002

S$’m

+/(-)

S$’m

+/(-)

%

Turnover

829.0

748.2

80.8

10.8

Operating Profit

58.6

59.3

(0.7)

(1.3)

Operating Margin (%)

7.1

7.9

(0.8)

(10.1)

Profit before tax, EI & minority

Exceptional Item (EI)

Profit before tax and MI after EI

74.9

0.4

75.3

71.0

14.5

85.5

3.9

(14.1)

(10.2)

5.4

(97.2)

(12.0)

PATMI before EI

PATMI after EI

PATMI before EI & prior years tax write-back

58.6

59.0

57.9

57.9

72.4

53.0

0.7

(13.3)

4.9

1.3

(18.4)

9.3

Group operating profit declined marginally by 1.3% from $59.3 million in YTD 3Q 2002 to $58.6 million in YTD 3Q 2003. Excluding exceptional items, the Group’s pre-tax profit increased 5.4% from $71.0 million in YTD 3Q 2002 to $74.9 million. The increase was attributed to better net contributions from associated companies.

The Group’s attributable profits declined by 18.4% from $72.4 million in YTD 3Q 2002 to $59.0 million. The decline was mainly due to the lower exceptional gain of $0.4 million in YTD 3Q 2003 as compared with $14.5 million in YTD 3Q 2002.

Excluding exceptional items and the effect of prior years tax over-provision, the Group’s attributable profits increased by 9.3% from $53.0 million in YTD 3Q 2002 to $57.9 million.

Earnings per share for YTD 3Q 2003 excluding exceptional items is 4.12 cents, an increase of 0.7% as compared to the 4.09 cents in YTD 3Q 2002.

Net Assets per share is 64.37 cents as at September 30, 2003.

Prospect Statement

In the prospect statement made on August 1, 2003 for the 1H 2003 SGX Announcement, the Group was expected to maintain its operating profit for the third quarter.

The third quarter 2003 operating profit was however lower than projected. This was mainly due to the consolidation of PPL Shipyard’s operating losses.

Consequently, the Group operating profit for the first nine months of 2003 was marginally (1.3%) lower than the corresponding period last year.

With strong shipping freight rates leading to deferred dockings, the ship repair market is unlikely to improve in the next quarter. In addition, there will be no major conversion completion in the fourth quarter. Hence, the Group expects a lower operating profit.

As at September 30, 2003 the Group’s outstanding order book for newbuilding, ship conversion and offshore projects stands at S$1.088 billion.

Performance of Associated Companies & JV (PBT)

YTD

Associates

3Q2003

S$’m

3Q2002

S$’m

+/(-)

S$’m

+/(-)

%

Dalian Cosco Marine

2.3

0.5

1.8

344.0

Jurong Shipyard Inc

1.0

2.0

(1.0)

( 49.3)

PPL Shipyard (up to June 03)

0.8

(3.2)

4.0

124.5

Bohai Sembawang

0.2

0.1

0.1

76.0

Others

2.0

1.8

0.2

11.1

Total

6.3

1.2

5.1

431.5

 

Sector Breakdown

YTD

Sector

3Q2003

S$’m

3Q2002

S$’m

+/(-)

S$’m

+/(-)

%

Ship Repair

247.0

338.7

( 91.7)

(27.1)

Ship conversion/offshore

329.4

220.4

109.0

49.5

New Building

200.3

136.3

64.0

47.0

Others

52.3

52.8

( 0.5)

( 0.9)

Total

829.0

748.2

80.8

10.8

 

Ship Repair

YTD

Details

3Q 2003

3Q 2002

% Change

No. of vessels

255

267

( 4.5)

Average value per vessel (S$’m)

0.97

1.27

(23.6)

 

Ship Conversion & Offshore

Details

No

Projects

No. completed in 1Q03

2

W. D. Fairway (jumboisation)

Maxita (crane barge conversion)

No. completed in 2Q03

3

FPSO Fluminense

FSO Kome-Kribi 1

Shuttle Tanker

No. completed in 3Q03

1

P-43 (FPSO – marine conversion)

Work-in-progress

4

P-50 FPSO (1Q04)

Erha project (1Q05)

Jascon 5 (4Q03)

Nina FPSO (4Q04)

 

Shipbuilding

Details

No

Projects

No. completed in 1Q03

nil

No. completed in 2Q03

nil

No. completed in 3Q03

nil

Work-in-progress

7

1st unit 2,500 TEU (4Q03)

2nd unit 2,500 TEU (3Q04)

Coastal vessels (1Q04)

1st unit 2,600 TEU (1Q05)

2nd unit 2,600 TEU (2Q05)

3rd unit 2,600 TEU (4Q05)

4th unit 2,600 TEU (2Q06)

Rig Construction

Details

No

Projects

No. completed in 1Q03

nil

No. completed in 2Q03

1

PPL Shipyard

Constellation 1

No. completed in 3Q03

nil

Work-in-progress

3

Jurong Shipyard

Development Driller 1 (1Q04)

Development Driller II (4Q04)

PPL Shipyard

Constellation II (1Q04)

 

Associates (MauĂ  Jurong : Brazil)

Details

No

Projects

No. completed in 1Q03

nil

No. completed in 2Q03

nil

No. completed in 3Q03

nil

Work-in-progress

3

P-43 & P-48 Topsides (4Q03)

P-50 Utility Modules (4Q04)

 

Contracts Secured YTD 3Q 2003

Sector

Value

S$’m

Projects

Conversion & offshore

$261

Erha Field Project (1Q05)

Jascon 5 (4Q03)

Shuttle tankers (2Q03)

Nina FPSO conversion (4Q04)

Santos Mutineer FPSO conversion (4Q04)

Shipbuilding

$236

Coastal vessels (1Q04)

2,600 TEU container vessels (1Q05 to 2Q06)

Utility Modules

$198

P-50 Utility Modules (4Q04)

Total

$695

 

Updates : Total Order Book (exclusive of ship repair)

S$’m

Sector

Contract Sum (updated)

Taken up 31/12/02

Taken up YTD 3Q 2003

Balance

30/9/03

Ship conversion & offshore

$1,159

$282

$329

$ 548

Rig Construction

-semi-submersible

-jack-up

$ 303

$ 263

$ 92

$127

$105

$115

$ 106

$ 21

Shipbuilding

$ 340

0

$ 92

$ 248

Topsides & Utility Modules

$ 536

$218

$153

$ 165

Total

$2,601

$719

$794

$1,088

 

For Media & Analysts enquiries, please contact the following:

Mr Heng Chiang Gnee
Deputy President
Tel No : 6262 7045/6262 7154

Mr Wee Sing Guan
Chief Financial Controller
Tel No : 6262 7207

Judy Han (Ms)
Vice President
Investor Relations & Communications
Tel No : (65) 6262 7203
Fax No : (65) 6261 0738
Email : judy@sembcorpmarine.com.sg

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