The ship is sinking: Sembmarine lost nearly $35m in Q4

The poor performance of its rigs business pulled revenue down by 41.8%.

Sembcorp Marine (Sembmarine) was hit by a loss of $34.99m in Q4, no thanks to the poor performance of its rigs & floaters and offshore platforms businesses.

According to its financial statement, the revenue of its rigs & floaters businesses fell 41.8% YoY to $1.1b, whilst revenue from its offshore platforms dropped by 34.4% YoY to $732.1m in 2017. Overall revenue sank 32.7% YoY to $2.39b.

Excluding the effects of the sale of nine jack-up rigs to Borr Drilling and the termination of three jack-up rigs with a customer, revenue would have fallen by 33%.

Sembcorp Marine disposed nine jack-up rigs to Borr Drilling Limited (Borr) for $1.8b (US$1.3b). According to DBS Equity Research, the price suggests an average resale price of $196.4m (US$144m) per rig, a 30% drop from the original contract value.

Losses were partially offset by foreign exchange translation gain on the United States dollar and Brazilian Real borrowings for the Brazil yard.