SMM profit inches up

Singapore’s Sembcorp Marine has reported a modest 4% growth in its half year results released Monday.

It made a net profit of SGD 254m ($204m) for the six months ended 30 June 2014, versus the SGD 244m seen a year ago.

The Singapore-listed shipyard group said the result was achieved “amid still challenging market conditions”.

Revenue grew 23% year-on-year to $2.7bn, thanks mainly to increased contributions from its rig and offshore platform projects.

Turnover for Sembcorp Marine’s rig building arm increased 36% year-on-year from SGD 1.2bn to SGD 1.67bn.

The group said it delivered six jack-up drilling rigs in the first half, with another eight in the work in progress stage.

Its fixed platform segment registered a 30% increase in revenue from SGD 413m to SGD 535m in the first half of 2014.

In contrast offshore and conversion revenue declined 40% to SGD 123m, with just one project delivery during the period.

It said ship repair revenue was 2% lower at SGD 307m due to timing in recognition of repair projects.

Sembcorp Marine says it now has a net order book worth SGD 12.7bn with deliveries stretching into 2019.