Sembcorp Marine suffers net loss of $1.17b in FY2021

The group attributed this to supply chain constraints and cost provisions of $839m. 

A net loss of $1.17b for the financial year (FY) 2021 ended 31 December 2021 was recorded by Sembcorp Marine. 

Making up the net loss were the following provisions totalling $839m on a post-tax basis. Around $696m was needed to complete additional existing projects through additional labour and other costs, whilst an increase in provisions for yards reinstatement totalled $75m. Asset impairment loss and a project stock write-down of $68m also contributed to the loss. 

Excluding the above provisions, net loss for the year would be at $332m, a 24% improvement over last year’s $439m.

Despite these losses, increases were seen in the group’s other metrics for FY2021. Earnings before interest, taxes, depreciation, and amortization (EBITDA) hit a total of $1.03b.

Compared on a quarter-on-quarter basis the second half of 2021 saw an EBITDA of $49, 66% lower than the recorded EBITDA of $146m in  2H2021.

September 2021 also saw the successful completion of a Rights Issue worth $1.5b for the company’s funding needs. Startree Investments Pte. LTD., a subsidiary of Temasek Holdings, ended up with a resultant shareholding of 54.6% in the group. 

Four major projects were also delivered by the group in FY 2021, with another 12 scheduled for completion in 2022. 

A potential combination with Keppel Offshore Marine was also declared through the same announcement with a final agreement being expected by the first quarter of 2022.

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