Singapore's Sembcorp Marine Q3 net profit up 3 pct

Sembcorp Marine, the world's number-two builder of offshore oil rigs, reported on Wednesday a better-than-expected 3 percent rise in third-quarter net profit thanks to higher margins from building rigs. The company said fundamentals for the sector remain intact with oil prices in the $70-$80 a barrel range, and it expects a good business outlook for its ship repair business for the rest of 2009.
Sembcorp Marine earned S$144.6 million in the three months to September, compared with S$140.9 million a year ago. The profit was higher than Thomson Reuters I/B/E/S estimates of S$132 million.
Keppel Corp, the world's largest offshore oil rig builder, posted a 17 percent rise in third-quarter net profit, but its orderbook slid as it faces a cyclical industry downturn.
Sembcorp Marine and Keppel benefited from a jump in oil exploration in recent years as crude prices CLc1 soared to record highs, but new rig orders have dropped significantly as oil prices dropped.
However a senior executive at Keppel told Reuters in an interview last month that the recent rally in oil prices, which currently hover around $80 a barrel, might sustain new spending on exploration and production by oil companies.
Sembcorp shares have more than doubled so far this year, outpacing the 85 percent gain in Keppel Corp and the 50 percent rise in the broader index.