Sembcorp Marine's profit falls 51.2% to $5.6m for Q2

SMM will be looking to redeem itself via new orders.

Sembcorp Marine (SMM) will be scrambling for new orders after it posted a 51.2% fall in net profit to $5.6m for Q2.

In a report by OCBC Investment Research, the company also posted a 27.8% drop in revenue to $655.5m. SMM's yields were pushed down by forex losses up to $34.4m in the quarter.

Its operating margin rose from 1.8% to 4.3% in Q2. Q1 was affected by costs for the Libra FPSO that was pending finalisation with the customer.

OCBC is expecting new work for SMM estimated at US$100m ($136m) due to additional work scope requested for the P-86 FPSO.

SMM's net order book is at $6.7b, with a $3.6b contribution from its Sete Brasil drillships.