SINGAPORE (May 3): Sembcorp Marine reported earnings of $1.7 million for 1Q19 ended March, down 67.8% compared to earnings of $5.3 million a year ago.

In 1Q19, group revenue totalled $811 million, down 31.3% from $1.18 billion booked in 1Q18. The decline was largely due to lower revenue from rigs and floaters and offshore platform projects, partially offset by higher revenue from repairs and upgrades.

Turnover for Rigs & Floaters was $680 million in 1Q19, compared with $1.02 billion in 1Q18. Offshore Platforms revenue was $15 million in 1Q19, lower than the $62 million in 1Q18 due to the lack of large-scale contracts recognised during the period.

Offshore Platforms revenue was $15 million in 1Q19, lower than the $62 million in 1Q18 due to the lack of large-scale contracts recognised during the period, as well as low initial revenue recognition from the Hornsea II project.

Revenue from Repairs & Upgrades totalled $103 million in 1Q19 compared with $79 million in 1Q18, on higher value per vessel.

New contracts secured to-date totalled $175 million. The group net order book stands at $5.77 billion. Excluding Sete Brasil drillships, the net order book is $2.65 billion.

In its outlook, SembMarine says global capex spend for offshore exploration and production (E&P) continues to improve especially for the offshore production segment.

The group is also responding to increasing enquiries and tenders for offshore production units, innovative engineering solutions and projects related to the gas value chain.

However, competition remains intense, and production activity for the group is expected to remain low.

Shares in SembMarine closed 2 cents lower at $1.69 on Thursday.