Sembcorp Marine says group attributable profit after tax increased by 63% to $700.1 million for FY2009, the highest ever achieved.

Group turnover rose by 13% or $660.8 million to $5,724.7 million with the rig building sector registering an increase of 28% due to progressive recognition of rig building projects.

Group operating profit at $862.4 million was 72% higher than the corresponding period in 2008.

At pre-tax profit level, group earnings increased 67% to $907.6 million from $545 million in 2008, attributable mainly to higher operating margins from rig building projects.

4Q 2009 vs 4Q 2008
On a quarterly basis, group attributable profit after tax for 4Q 2009 at $297.2 million was the highest quarter ever recorded. This was 328% higher as compared with $69.4 million recorded in 4Q 2008.

Group turnover at $1,343.2 million for 4Q 2009 was 17% lower as compared with $1,617.5 million for the corresponding period in 2008. Turnover was higher in 4Q 2008 due to the variation order settlement for a turnkey conversion project.

Group operating profit at $387.0 million was 129% higher than 4Q 2008’s $168.8 million.

At pre-tax profit level, group earnings increased 348% to $394.8 million in 4Q 2009 as compared with $88.2 million in 4Q 2008. The record 4Q 2009 profit was attributable to combination of operational efficiency, execution of projects ahead of schedule, resulting in better margins and resumption of margin recognition for some of the projects.

The directors have recommended a total final cash one-tier tax-exempt dividend of 10.00 cents per share comprising a final ordinary dividend of 6.00 cents plus a special dividend of 4.00 cents per share in view of the exceptional results in respect of the financial year ended 31 December 2009.

Including the interim one-tier tax-exempt cash dividend of 5.00 cents per share paid on 1st September 2009, the total dividend for FY 2009 will be 15.00 cents per share, an increase of 36% over the 11.00 cents per share in FY 2008.

SembMarine has a net order book of $5.5 billion with completion and deliveries stretching till early 2012. This includes the $1.25 billion in new orders secured in FY 2009.

SembMarine says the year ahead sees increasing confidence with the global economy showing signs of recovery albeit at different speeds in the various regions, driven largely by Asia. Demand for energy is also expected to grow. Fundamentals for the offshore oil and gas sector remain intact with prices of oil stabilising within the range of US$70 to US$80 a barrel.

Long-term fundamentals driving deepwater exploration and production activities are expected to continue in order to replenish declining oil and gas reserves and to increase production to meet growing energy demand.
“Although the group’s order book may benefit from this growth, we will face severe competition from other shipyards,” it says.

For ship repair, SembMarine says bigger docks are well-booked due to the strong support from the group’s Alliance/FCC and regular customers and its niche market segment of LNG carriers’ refurbishment. “Demand for our bigger docks remains strong.”