Sembcorp Marine, the world’s second-biggest oil-rig maker, reported a 15% decline in second-quarter profit after sales fell as the company was yet to begin work on orders won last year.
Net income in the three months ended in June fell to $149.7 million rom $176.1 million a year earlier, the Singapore-based company said in a statement to the city’s stock exchange today. Sales declined 24% to $831.3 million.
Sembcorp Marine said it expects energy companies to raise spending on exploration and production this year on fuel demand from emerging economies. The company has bagged $2.6 billion of new contracts this year as higher crude oil prices spur demand for drilling equipment.
The rig-maker dropped 1.9% to $5.3 at close of trading in Singapore before the earnings were announced. The stock has risen 3% this year, compared with little change in the benchmark Straits Times Index.
“New jackup rigs secured since the fourth quarter of last year are still in the planning stage,” Sembcorp Marine said in the statement.
The company has an order backlog of $5.7 billion, and deliveries will extend to 2014, it said in the statement.
Sembcorp Marine’s operating profit margin widened to 19% in the second quarter, from 18% a year earlier, according to the statement.
Keppel Corp., the world’s largest oil-rig maker, last month reported second-quarter profit that exceeded analysts’ estimates. Petroleo Brasileiro SA, Brazil’s state-controlled oil producer, said yesterday it plans to drill more than 1,000 offshore wells in 2011-2015.
Sembcorp Marine’s Jurong Shipyard unit signed two contracts valued at US$444 million ($535 million) to build two jackup rigs for a subsidiary of Noble Corp., it said in a statement earlier today. Noble also secured options for two more units, Sembcorp Marine said.
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