Results for 1Q 2017
1Q 2017 net profit of $40 million
Key highlights: For the 3 months to March 31, 2017,
- Revenue totalled $760 million.
- EBITDA of $61 million.
- Group net profit totalled $40 million.
Singapore, April 27, 2017: Sembcorp Marine posted Group revenue of $760 million for the three months ended March 31, 2017 compared with $918 million in revenue in 1Q 2016. Net profit achieved was $40 million for the first three months of FY 2017.
Turnover for Rigs & Floaters was $347 million for 1Q 2017, a 36% decline from the $540 million booked in the previous year due to lower revenue from drillships and other rigs. This was partially offset by revenue recognition from ongoing floater projects, and the completion and delivery of an FPSO vessel.
Offshore Platforms revenue increased 16% year-on-year to $302 million in 1Q 2017 from $261 million in 1Q 2016 on higher recognition of ongoing offshore platform projects and LNG topside modules.
Repairs & Upgrades revenue declined 9% year-on-year from $99 million in 1Q 2016 to $90 million in 1Q 2017. Fewer ships were repaired although average revenue per vessel has increased slightly from an improved vessel mix with more higher-value works.
Operating profit for 1Q 2017 decreased mainly due to lower contribution from rig building projects and costs incurred for a floater project which is pending finalisation with the customer.
Net profit for 1Q 2017 totalled $40 million, compared with 1Q 2016 net profit of $55 million. The Group booked a gain of $47 million from the divestment of its 30% stake in Cosco Shipyard Group Co., Ltd, which was completed in January 2017.
Balance Sheet and Cash Flow
Net debt increased marginally during the quarter, with net debt to equity at 1.18 times at end of 1Q 2017 compared with 1.13 times at end FY2016. Cash used in operations for 1Q 2017 was $69 million mainly for working capital for ongoing projects. Net cash used in investing activities was $53 million for capital expenditure for Phase 2 of our Tuas Boulevard Yard and Estaleiro Jurong Aracruz (Brazil) Yard.
Oil prices appear to have stabilised. Global exploration and production spending is expected to increase in 2017, compared to the last two years.
Enquiries for non-drilling solutions continue to be encouraging. We are cautiously optimistic of new orders for production facilities in the next few years.
Customer interest in our broad-based LNG solutions and capabilities remains strong, as global demand for gas is on the rise. We are making steady progress in the development and commercialisation of our Gravifloat technology for near-shore gas infrastructure solutions. However, it will take time for such efforts to translate into orders.
Sembcorp Marine’s strategy and focus remain anchored on strengthening and optimising our talent pool; pursuing operational excellence in executing our projects; investing in new capabilities, products and technological innovation to help grow our order book; and prudently managing our financial resources to preserve financial flexibility and ensure overall sustainability of our business.
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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