Sembcorp Marine: 2Q Net Profit S$124.9 Million Vs S$142.8 Million Year Ago

Sembcorp Marine Ltd. (S51.SG) said Thursday its second-quarter net profit fell 12.5% from a year earlier primarily because of lower contributions from associate companies.
Net profit for the three months ended June 30 was 124.9 million Singapore dollars (US$98.2 million), down from S$142.8 million a year earlier, the world's second-largest builder of offshore oil rigs by volume said in a statement to the Singapore Exchange.
Sembcorp Marine, the marine engineering arm of conglomerate Sembcorp Industries Ltd. (U96.SG), said turnover fell 7.6% to S$1.12 billion.
"Fundamentals for the offshore and marine industry remain stable underpinned by high oil prices and projected increases in offshore exploration and production spending," the company said in the statement.
Demand for rigs is expected to remain strong but competition from the Chinese and Korean yards will impact margin, it said.
Sembcorp Marine has an order book worth S$14.4 billion, with deliveries scheduled through 2019. The company has received new orders worth S$3.5 billion so far this year, according to the statement.
The company proposed an interim dividend of 5 Singapore cents per share to be paid on Aug. 29, according to the statement.
Source: Dow Jones