SINGAPORE (Oct 25): Sembcorp Marine has reported a loss of $29.8 million in 3Q18, compared to earnings of $101 million in 3Q17 after restating for accounting changes on adoption of SFRS (I).

This brings 9M18 loss to $80.1 million, compared to restated earnings of $142.9 million in 9M17.

The net loss for both 3Q and 9M periods were mainly due to loss upon the sale of a semi-submersible and continued low overall business volume.

Looking ahead, SembMarine says overall business volume and activity for the group is expected to remain relatively low for the immediate quarters and the trend of negative operating profit is expected to continue.

In 3Q18, group revenue increased by 60.2% to $1.17 billion from a restated $728.8 million a year ago, This was due to higher percentage recognition of two Transocean drillships, the Johan Castberg FPSO, Shell Vito FPU and Karish FPSO projects, as well as recognition of two additional jack-up rigs delivered to Borr Drilling.

However, cost of sales increased by 96% to $1.18 billion from $602.1 million last year.

Hence, the group made a gross loss of $12.8 million, compared to a restated gross profit of $126.7 million in the previous year.

As at Sept 30, group cash and cash equivalents stood at $682.6 million.

In 9M18, $730 million in new contracts bringing net order book to $6.39 billion to date.

Shares in Sembcorp Marine closed 3 cents lower at $1.72 on Thursday.