Repair business shines for Sembcorp Marine

Strong repair business on cruiseships and LNG carriers could not offset the slowdown in offshore-related business at Sembmarine Strong repair business on cruiseships and LNG carriers could not offset the slowdown in offshore-related business at Sembmarine

Singaporean shipyard group Sembcorp Marine pointed to value growth in its ship repair business as slow rig and platform businesses contributed to a slum in turnover and net profit in 2017.

Group revenue declined by 33% to S$2.39 billion while net profit fell by 82% to S$14.1 million. The results were driven by a 42% turnover decline in Sembcorp Marine’s business building rigs and drillships, to S$1.1 billion, and a 34% decline in turnover from the offshore platform division, to S$732 million.

The smaller ship repair and upgrade unit recorded a 3% increase in sales to S$460 million. The company noted that while fewer ships were repaired, average revenue per vessel was higher due to an improved vessel mix with more higher-value works.

In the offshore market, the company noted the cancellation of an order for five jack-up rigs and fewer projects in hand for offshore platforms. “While the offshore oil and gas industry has begun to show signs of improvement, new orders flow remained weak, while competition within the sector intensified,” said Wong Weng Sun, president and CEO, Sembcorp Marine.

Examining the ship repair and upgrade business, Wong highlighted the repair of 16 cruiseships and 34 LNG carriers in 2017. The company also installed 11 ballast water treatment systems.

LATEST PRESS RELEASES

SCHOTTEL strengthens presence in Nordic region

As of November 2018, SCHOTTEL Norway AS and Frydenbø SCHOTTEL Nordic AS have been merged under SCHOT... Read more

StormGeo Launches Navigator Solutions Portfolio

The First Integrated Navigational Planning and Route Optimization Platform Delivered by One Company Read more

Oceans of opportunity

Sofia Fürstenberg Stott has been an architect of Nor-Shipping’s evolution to embrace and enable new ... Read more

Nor-Shipping looks to achieve industry first with ISO sustainable event standard

Nor-Shipping is aiming to set a new benchmark for the maritime and ocean event segment with a move t... Read more

Datum Electronics Ltd and Intertech B.V. Announce New Partnership in the Netherlands

Located in the Netherlands, Intertech B.V. is now Datum Electronics’ representative for torque senso... Read more

Oil quality is the key to increased up-time

Research has shown that 80% of all hydraulic failures can be directly attributed to oil contaminatio... Read more

View all