Sembmarine sinks $647m in net loss for H1 2021
COVID-19 disruptions continue to cause delays in its projects.
Sembcorp Marine reported a net loss of $647m for the first half of the year, as COVID-19 continues to cause delays and an increase in manpower costs to complete its projects.
This is higher than the $192m net loss recorded in the same period last year.
“Since the onset of the COVID-19 pandemic, a majority of the group’s projects have been delayed by at least 12 months. The re-introduction of COVID-19 measures in early 2021, including tighter border controls, have disrupted supply chains and exacerbated the shortage of skilled manpower. This further impacted the group’s yard operations and scheduled completion of projects with increased risk of terminations,” it said in a bourse disclosure.
Its losses include $361m in additional labour and other costs to be incurred over the next six to 18 months to complete existing projects; $65m to increase provisions for yards’ reinstatement; and asset impairment loss of $46m.
Its revenue was at $844m, 6.0% lower than what was recorded for the first six months of 2020.
“The group has also actively undertaken measures to improve project execution, replenish temporary working capital depletion and enhance the group’s liquidity position. However the group expects to incur losses in 2H2021 because of insufficient revenues to cover overhead costs,” it said in the disclosure.
It is also looking into combining with Keppel Offshore & Marine, as announced on 24 June 2021.