Sembcorp pins short-term hopes on LNG demand

Sembcorp Marine’s full-year revenue fell by $1.43 billion last year to $3.54 billion.

Offshore staff

SINGAPORESembcorp Marine’s full-year revenue fell by $1.43 billion last year to $3.54 billion.

Turnover for rigs and floaters was $1.89 billion, a 43% decline from the previous year due to lower revenue from drillships and other rigs. Last year’s deliveries includedtwo jackups, one accommodation semisubmersible, and an FPSO conversion.

Offshore platforms revenue, however, increased 10% to $1.12 billion, with deliveries including three production platform topsides (process, drilling and quarters topsides) to one customer.

Despite an increase in the number of ships the company repaired, its repairs and upgrades revenue fell 18% to $460 million due to lower average revenue per vessel, reflecting tough competition in this sector.

Although prospects for the oil and gas industry have improved since last November’s agreement byOPEC and major non-OPEC countries to cut production, Sembcorp expects the wait to go on for a more robust recovery.

At the same time, despite intense competition, it believes that growth prospects for the offshore and marine industry are positive in the medium to long term.

Over the next few years it foresees revived demand for fixed platforms, FPSO and FSO conversions and newbuilds, while rising global demand for gas augers well for the company’s LNG solutions and capabilities, which it feels will be the key segments to watch in 2017.

02/22/2017

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