SembCorp sees strong rig building fundamentals

Offshore staff

SINGAPORE -- SembCorp Marine Ltd. says rig building fundamentals remain strong with demand moving toward deepwater exploration.

The sustained higher levels of exploration and production spending and high oil prices will continue to support the offshore fleet construction, the Singapore rig builder says. The company has orders worth $4.93 billion for work through to 2010.

The outlook for the offshore production market will see increasing demand especially in FPSO and floating production systems, SembCorp says.

Demand for ship repair remains very strong as well. Dock space remains fully utilized, with dock bookings of more than four months ahead, the company said in its 1Q 2007 financial report.

The 1Q turnover increased by 91.1% to $626.52 million, driven mainly by the rig building, ship conversion/offshore and ship repair businesses, SembCorp says. SembCorp's group attributable profit rose 80.6% to $48.41 million.

5/3/2007