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Sembmarine cuts first-half loss to $142.9m as easing Covid-19 curbs aid project deliveries

SINGAPORE (REUTERS) – Sembcorp Marine (Sembmarine) said on Friday (Aug 12) its half-year loss narrowed 78 per cent from a year earlier, as the group finished delayed projects after Covid-19 pandemic curbs were eased while also benefiting from cost management.

The company said that its overall order visibility has improved on the back of rising oil prices and renewed concerns about energy security amid geopolitical tensions.

Sembmarine posted a net loss of $142.9 million for the half year ended June 30, compared with a $647.2 million loss recorded a year earlier.

Revenue for the six months to end-June rose 29.7 per cent to $1.09 billion from $844.2 million previously.

Sembmarine said it recognised significantly higher revenue from floater projects after settling the final contract negotiation upon completion, as well as contributions from new projects.

This was, however, offset by lower contributions from its repair and upgrade business and lower revenue recognition from offshore platform projects that are nearer to completion.

Loss per share (LPS) for the first half narrowed by 90.8 per cent to 0.46 cent, down from an LPS of 5.01 cents a year ago.

The company has been a loss-making business since it posted an annual loss in 2018, in an industry plagued by oil price volatility, a drop in new orders, and the pandemic’s impact.

But Sembmarine on Friday flagged an upbeat remainder of fiscal 2022 on the back of improving market conditions for the oil and gas and renewables businesses, but said it expected to post an annual loss.

The company is in the midst of obtaining regulatory nods for its $8.7 billion merger with Keppel Corp’s offshore and marine unit.

No dividends were recommended for the first half-year.

• With additional information from The Straits Times