Sembcorp Marine Ltd. (S51.SG) said Thursday its second-quarter net profit fell 4.6% from a year earlier because of the timing of recognition of income from projects, but the company flagged a positive outlook for the offshore oil and gas industry.
Net profit for the three months ended June 30 was 142.8 million Singapore dollars (US$115 million), down from S$149.7 million a year earlier, the world's second-largest builder of offshore oil rigs by volume said in a statement to the Singapore Exchange.
"Amid the economic uncertainty and volatile global market conditions, the fundamentals for offshore oil and gas activities remain intact driven by demand for technically advanced, versatile and efficient rigs that are capable of shallow and deepwater drilling," the company said in the statement.
Sembcorp Marine, the marine engineering arm of conglomerate Sembcorp Industries Ltd. (U96.SG), said turnover rose 46% to S$1.22 billion.
Sembcorp Marine has an order book worth S$6.6 billion, with deliveries scheduled through the second quarter of 2015. The company has received new orders worth S$3.1 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. 31, according to the statement.
Source: Dow Jones