Just when we thought the oil and gas downturn is over, it seems the night just got darker. Sembcorp Marine, one of the bellwether company, posted a higher year on year losses. Loss per share was at 6.5 cents per share. Sembcorp marine’s financial results can be found here.
Here are two insights into the company:
1) Construction of Rigs and other offshore vessels is still weak
This is the main business of Sembcorp Marine and is found in Pg 21 and 22 of the financial report. As observed, revenue in this segment has fallen along with a wider loss. That said, revenue recognition for such business is lumpy and it could be that in 2018, SembCorp Marine recognised a larger portion of its projects. Hence we turn our attention to Sembcorp Marine’s order book. It is seen that the company has not replenished its orderbook and it has fallen from 3.1Billion to