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Sembcorp Marine Ltd’s Annual Report: 20 Key Numbers Investors Should Know

Sembcorp Marine Ltd (SGX: S51) released its 2015 annual report a few months ago.

The company has four major business segments, namely, Rigs and Floaters, Repairs and Upgrades, Offshore Platforms, and Specialised Shipbuilding. We can learn more from Sembcorp Marine’s annual report. Here are 21 key figures from it that investors might want to sit up and take notice of:

  1. Sembcorp Marine has a history stretching back over 50 years. At the end of 2015, it boasted seven yards around Singapore. Sembcorp Marine also said that its new yards, the Tuas Boulevard yard & Estaleiro Jurong Aracruz (EJA) yard, are nearing completion. The company believes that the two yards will be able to meet its requirements for the next 50 years.
  2. Sembcorp Marine completed 34 projects for the repair and upgrade of liquefied natural gas (LNG) vessels, up from 32 in 2014. Meanwhile, the company repaired and upgraded a total of 453 vessels in 2015, higher compared to the 439 seen in 2014. The average revenue per vessel, though, was lower due to an increase in competition.
  3. Sembcorp Marine also secured a US$1 billion contract to build the world’s largest semi-submersible crane vessel. Additionally, the rig builder also shone the spotlight on another contract worth over US$1 billion for three rig topsides for the Culzean Field Development.
  4. The Rigs and Floaters segment registered $3.3 billion in revenue for 2015. Repairs and Upgrades had chipped in with $557 million, and Offshore Platforms contributed over $1 billion in revenue.
  5. The onus is on Sembcorp Marine to keep its yards busy. In 2015, the company secured $3.17 billion in new orders, mainly for non-drilling solutions. The management team said that this underlines Sembcorp Marine’s efforts to diversify beyond its rig building business.
  6. Unfortunately, Sembcorp Marine recorded a loss in 2015. The rig builder took a $329 million provision for its Sete Brasil projects and a further $280 million for delays and possible cancellations of other rigs. The two sizable provisions resulted in Sembcorp Marine posting $290 million in losses for the year.
  7.  It might be worth peeking into Sembcorp Marine’s balance sheet as well. The company had $629 million in cash and equivalents at the end of 2015. At the same time, it also had $3.4 billion in debt. From this amount, $915 million is due within a year of 31 December 2015, $1.9 billion is due within one to five years, and $600 million is due after five years. Sembcorp Marine said that its debt to capitalization ratio was 0.56 times.

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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 Chin Hui Leong doesn’t own shares in any companies mentioned.