Sembcorp Marine's income sank 12.5% to $124.9m

Blame it on lower revenue.

According to OSK DMG, SMM’s 2Q13 net profit declined 12.5% y-o-y to SGD124.9m, accounting for 42%-44% of the firm's and consensus forecasts.

The lower earnings were primarily due to lower revenue (-7.6% y-o-y) and weaker contributions from Cosco. Operating margin was fairly flat y-o-y at 13%.

Here's more from OSK DMG:

We deem the results in line as we expect stronger contributions in 2H13 given higher recognition of projects in its orderbook. NEUTRAL, with a SGD4.65 TP.

2Q13 results in line. 2Q13 net profit of SGD124.9m (-12.5% y-o-y, +5.2% q-o-q) lifted 1H13 net profit to SGD243.6m (-4.8% y-o-y), making up 42%-44% of our and consensus estimates. Revenue dipped 7.6% y-o-y to SGD1.12bn as fewer projects achieved initial recognition. These projects included the upgrading of Ocean Apex, LNG module project and Prosafe accommodation unit.

Operating margin flat y-o-y. 2Q13 operating margin came in at 13.0%, partially boosted by a SGD13.7m gain on disposal. Excluding the gain, 2Q13 operating margin was 11.8%, in line with expectations of 10%-13%. Ship repair remains the highest margin segment.

Also Read

Shell pipeline leaks oil into Singapore’s Bukom Island

Changi Airport Group unveils three faster vessels for sea rescues

Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

I want to download the media kit