Home Issues Offshore & Marine

SembMarine sees another year of red, but new orders momentum could improve

Jeffrey Tan
Jeffrey Tan3/6/2020 07:00 AM GMT+08  • 5 min read
SembMarine sees another year of red, but new orders momentum could improve
Despite an uptick in crude oil prices in 2019, a recovery in oil exploration and production activity was somewhat limited. This inevitably prolonged the downturn in the oil services industry, which has seen a glut of rigs and offshore
Font Resizer
Share to WhatsappShare to FacebookShare to LinkedInMore Share
Scroll to top
Follow us on Facebook and join our Telegram channel for the latest updates.

SINGAPORE (Mar 6): Despite an uptick in crude oil prices in 2019, a recovery in oil exploration and production activity was somewhat limited. This inevitably prolonged the downturn in the oil services industry, which has seen a glut of rigs and offshore platforms. Given the challenging environment, Sembcorp Marine (SembMarine) had to endure another difficult year.

For FY2019 ended Dec 31, SembMarine reported a y-o-y revenue decline of 41% to $2.88 billion. This came on the back of lower revenue recognition from rigs and floaters and offshore platform projects. As a result, the company remained in the red and posted a wider loss of $137.2 million. The accelerated depreciation of the company’s Tanjong Kling Yard also did not help.

SembMarine’s underlying problem largely lies with the company’s difficulty in finding new jobs. Last year, the company managed to secure new contracts worth only $1.49 billion. This was up 26.3% from $1.18 billion the year before. While the increase in new contracts is commendable, it is a far cry from the amount of new contracts it had obtained prior to 2015.

For more insights on corporate trends...
Sign In or Create an account to access our premium content.
Subscription Entitlements:
Less than $9 per month
Unlimited access to latest and premium articles
3 Simultaneous logins across all devices
Bonus unlimited access to online articles and virtual newspaper on The Edge Malaysia (single login)
×
Loading next article...
The Edge Singapore
Download The Edge Singapore App
Google playApple store play
Keep updated
Follow our social media
Subscribe to The Edge Singapore
Get credible investing ideas from our in-depth stock analysis, interviews with key executives, corporate movements coverage and their impact on the market.
© 2022 The Edge Publishing Pte Ltd. All rights reserved.
Unlock unlimited access to premium articles with less than $9 per month. Subscribe Now