SINGAPORE: Sembcorp Industries has posted a 25 per cent drop in earnings for the first quarter of 2016 compared to a year ago, on the back of a more challenging macro environment impacting its marine business.
Sembcorp reported net profits of S$107 million in the first three months of 2016.
Net profit gains in the utilities and urban development businesses were more than offset by the almost 50 per cent drop in the marine segment amid slower rig building activity.
Overall, turnover came in at S$1.9 billion, down 19 per cent on-year.
Looking ahead, Sembcorp said the global downturn in the oil and gas sector, as well as competition in Singapore's power market are expected to continue in 2016.
However, it said it is positive on longer-term prospects and plans to strengthen its business to prepare for when the market recovers.