Singapore-listed Sembcorp Marine Ltd's revenue from rig building increased $574 million (SGD 714 million) to $918 million (SGD 1,142 million) in the third quarter of 2013 compared to $344 million (SGD 428 million) a year ago, according to company's financial results released Tuesday.
The firm said five rigs - comprising a well-intervention semisub, a harsh-environment semisub and three jackups (two units of Pacific Class 400 rigs and one unit of F&G 3000N jackup) achieved initial revenue recognition in 3Q 2013. This contrasted with only one jackup in the corresponding period in 2012. There was however a 10 percent drop in revenue in the conversion and offshore sector to $218 million (SGD 271 million) in 3Q 2013, compared to $241 million (SGD 300 million) in the previous year. "The decline was due to timing in recognition of projects that achieved initial recognition and the value of the projects. For 3Q 2013, there was no initial recognition of project as compared with one major floating storage conversion (FSO) conversion in 3Q 2012," Sembcorp Marine said in a press release. Meanwhile, the company said the repair sector generated a 34 percent increase in revenue from $123 million (SGD 153 million) in 3Q 2012 to $164 million (SGD 204 million) in 3Q 2013.
Overall, Sembcorp Marine recorded a 12 percent rise in net profit for 3Q 2013 to $104 million (SGD 130 million), compared with $93 million (SGD 116 million) in the same period last year. Looking ahead, Sembcorp Marine expects demand for high specification and ultra-deepwater rigs with advanced technical features to remain strong as "long-term industry fundamentals for the offshore and marine sector remain sound underpinned by exploration activities with increasing interests in harsh environment and field development programs." Separately, the firm's Sembmarine Integrated Yard @ Tuas commenced operations in August 2013. The yard has 4 Very Large Crude Carrier (VLCC) size drydocks with a total capacity of 1.55 million deadweight tonnes as well as finger piers and basin lengths totalling 2.4 miles (3.9 kilometers). The new yard is capable of undertaking floating, production, storage and offloading (FPSO) conversions as well as servicing a wide range of vessels, including VLCCs, new generation of mega containerships, liquefied natural gas (LNG) carriers, cruise ships, semisubmersible rigs, offshore vessels and fixed platforms.