Fresh floater projects to buoy Sembcorp Marine's profits

Revenue has already surged 40% to $1.04b thanks to three projects.

Sembcorp Marine’s floaters segment revenue went up 40% YoY to $1.04b amidst higher percentage revenue recognition for its Johan Castberg, Shell Vito, and Karish FPSO projects.

Two projects still in the planning stage, namely Shapoorji FPSO and Shell Whale FPU, should contribute positively to SMM’s bottom line in the coming 12 months, according to UOB KayHian analyst Adrian Loh.

Repairs and upgrades continued to do well with a 16% revenue increase to $391m with average revenue per vessel rising 22% YoY to $1.78m.

On the other hand, the rig building segment posted a 74% YoY crash in revenue to $691m, while offshore platforms revenue also went down 51% to $89m.

Sembcorp also acquired $400m worth of new orders in Q3, including an offshore wind farm sector in Taiwan, bringing the company’s net orderbook at $2.42b vs $6.2b at the end of 2018.