Singapore: Sembcorp pins short-term hopes on LNG demand

Singapore: Sembcorp pins short-term hopes on LNG demand

Sembcorp Marine's full-year revenue fell by $1.43 billion last year to $3.54
billion.

Turnover for rigs and floaters was $1.89 billion, a 43% decline from the
previous year due to lower revenue from drillships and other rigs. Last
year's deliveries included two jackups, one accommodation semisubmersible,
and an FPSO conversion.

Offshore platforms revenue, however, increased 10% to $1.12 billion, with
deliveries including three production platform topsides (process, drilling
and quarters topsides) to one customer.

Despite an increase in the number of ships the company repaired, its repairs
and upgrades revenue fell 18% to $460 million due to lower average revenue
per vessel, reflecting tough competition in this sector.

Although prospects for the oil and gas industry have improved since last
November's agreement by OPEC and major non-OPEC countries to cut production,
Sembcorp expects the wait to go on for a more robust recovery.

At the same time, despite intense competition, it believes that growth
prospects for the offshore and marine industry are positive in the medium to
long term.

Over the next few years it foresees revived demand for fixed platforms, FPSO
and FSO conversions and newbuilds, while rising global demand for gas augers
well for the company's LNG solutions and capabilities, which it feels will
be the key segments to watch in 2017.

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Link to Original Article:
http://www.offshore-mag.com/articles/2017/02/sembcorp-pins-short-term-hopes-
on-lng-demand.html?cmpid=enl_offshore_offshoredailynewsletter_2017-02-23&ema
il_address=johndiecker@gmail.com&eid=287675795&bid=1673513

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John Diecker
APT Consulting Group Co., Ltd.

www.aptthailand.com