Sembcorp Marine’s net profit sank 17% to $109m in Q2

Lower shipbuilding revenue is to blame.

Sembcorp Marine reported that its net profit sank 17% year-on-year to $109m in the second quarter, on back of persistently weak industry conditions.

The group cited the sharp fall in global oil & gas capex spend as the culprit behind the 10% drop in its turnover for the second quarter.

SembMarine’s revenue dropped 10% to $1.02b, due mainly to a fall in rig building and repair revenue.

On a half-year basis, SembMarine's net profit dropped 15% to $215m. Turnover for the rig building sector declined 18% year on year to $1.38b in the first half, while offshore and conversion revenue increased 27% from $833m.

Ship repair revenue was 14% lower at $266m as average revenue per vessel remained low although the number of ships repaired increased.