Net Profit Edges Up 1.8% at Sembcorp Marine Ltd

Sembcorp Marine Ltd (SGX: S51), which is part of SembCorp Industries Limited (SGX: U96), saw its third-quarter revenue rise 3.2% and its bottom line increase by 1.8%, both year-on-year. This was announced on Wednesday.

Top line went from S$1.66 billion last year to S$1.71 billion in the latest quarter. This was due to increased contribution from rig building, and offshore and conversion projects. Revenue from rig building, which contributed to 72.2% of total revenue, went up 8.2% to S$1.24 billion while revenue from offshore and conversion increased 10.6% to S$300 million.

Due to higher profit contribution from the rig building and offshore platform segments, net profit in the latest quarter grew 1.8% year-on-year to S$132 million, as compared to S$130 million in the previous year.

For the nine months to September 2014, revenue increased 14.5% to S$4.39 billion while net profit rose 3.4% to S$386 million.

As of 30 September 2014, the firm had S$1.65 billion in total borrowings and a cash balance of S$1.56 billion. At the end of last year, the figures stood at around S$670 million and S$1.69 billion respectively. The increase in borrowings for the latest quarter was mainly due to borrowings for capital expenditures for a new yard in Brazil and Sembmarine Integrated Yard @Tuas.

Since the start of this year, the marine outfit secured a total of S$4.2 billion in new rig and offshore conversion contracts. This brings the net order book to S$12.6 million, with completion and deliveries going up to 2019. Its wholly owned shipyard in Brazil, Estaleiro Jurong Aracruz, commenced initial operations in the second half of this year, with construction expected to be completed by next year.

Shares at Sembcorp Marine closed at S$3.68 on Wednesday.

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore contributor Sudhan P doesn’t own shares in any companies mentioned.