6 Charts to Help You Understand Sembcorp Marine Ltd

SembCorp Marine Ltd (SGX: S51) released its 2016 annual report earlier this year.  

Sembcorp Marine is an important global player in the offshore and marine industry. The firm’s business can be divided into four segments: rig & floaters, offshore platforms, repairs and upgrades and other activities. The latest annual report provides more insights into the different segments.  

Dividing it up

Source: Sembcorp Marine’s Annual Report

Sembcorp Marine recorded $3.54 billion in 2016. Rigs & floaters account for 53% of its sales. The segment is the largest contributor to Sembcorp Marine’s revenue but its contribution declined from 67% in 2015. Meanwhile, offshore platforms rank second with a 32% contribution while repairs and upgrades occupy 13% of sales.

Let’s dive deeper into the individual business segments.

Source: Sembcorp Marine’s Annual Report

Unfortunately, rig revenue has been hit hard in the past two years, declining from $3.78 billion in 2014 to $1.05 billion in 2016. From the graph above we can see that revenue from the jack-up rigs and drillships are behind much of the sales decline. On the other side, revenue from floaters has held up better over the past two years.

Let’s keep moving to the other segments.

Source: Sembcorp Marine’s Annual Report

Revenue from offshore platforms has steadily increased over the past five years. Compared to 2012, offshore platform sales have gone up by 44.2%. However, revenue from repairs and upgrades have been heading in the opposite direction. The latter segment’s revenue has declined by 28% since 2012.  

To keep up to date on the latest financial and stock market news, sign up now for a FREE subscription to The Motley Fool's weekly investing newsletter, Take Stock SingaporeIt will teach you how you can grow your wealth in the years ahead.

Also, like us on Facebook to follow our latest hot articles. The Motley Fool's purpose is to help the world invest, better.

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.