Sembcorp posts revenue of S$3.97 billion for first nine months of 2018

Singapore’s Sembcorp Marine posted group revenue of S$3.97 billion (US$2.87 billion) for the nine months to September 30, 2018. This compares with S$2.12 billion (US$1.56 billion) in revenue generated from January 1 to September 30, 2017.

The higher revenue in 9M 2018 was largely due to revenue recognition on delivery of six jack-up rigs to Borr Drilling, one jack-up rig to BOTL, the sale of the West Rigel semi-submersible rig (renamed Transocean Norge), and higher recognition for ongoing drillship and offshore production projects in 9M 2018.

Excluding the sale of West Rigel and rig deliveries to Borr Drilling and BOTL, group revenue for the 9M 2018 would have been S$1.8 billion (US$1.3 billion), down nine per cent year-on-year from S$2 billion (US$1.47 billion) in 9M 2017. Revenue adjustments were also made in 9M 2017 due to the termination of two rig contracts with a customer last year.

Sembcorp also posted 9M 2018 operating loss of S$54 million (US$39.03 million) and a net loss of S$80 million (US$57.82 million) due to continued low overall business activities and the sale of West Rigel at a loss of S$34 million (US$24.58 million). This compares with a net profit of S$143 million (US$105.29 million) in 9M 2017, partly due to last year’s gain of S$47 million (US$34.60 million) from the sale of investment in Cosco Shipyard Group and the net positive effect of contract termination of two rigs last year of about S$98 million (US$72.15 million).