SINGAPORE: Singaporean rig builder Sembcorp Marine on Wednesday (Apr 25) posted an 86 per cent fall in first-quarter profit and signalled a subdued outlook for rig orders.
Sembcorp Marine said profit came in at S$5.3 million for the three-month period ended March, compared with S$37 million in the same period a year ago. The year-ago profit was boosted by a one-off gain from the disposal of Sembcorp Marine's stake in Cosco Shipyard Co.
Recovery in rig orders is expected to take some time as most of the drilling segments remain oversupplied, with day rates and utilisation under pressure, the company said in a statement on Wednesday.
The company, majority owned by industrial conglomerate Sembcorp Industries, said revenue rose 58 per cent to S$1.18 billion. The company's year-ago results have been restated due to the adoption of the Singapore Financial Reporting Standards.