Sembcorp Marine returns to profitability

Sembcorp Marine President and CEO President & CEO Mr. Wong Weng Sun Sembcorp Marine President and CEO President & CEO Mr. Wong Weng Sun

FEBRUARY 22, 2017 — Singapore's Sembcorp Marine posted Group revenue of SGD 3.54 billion for the year ended December 31, 2016 (FY 2016) compared with SGD 4.97 billion previously. The Group reported an earnings turnaround in FY 2016 with EBITDA totaling SGD 384 million while Net Profit was SGD 79 million. Operating cash flow was SGD 669 million in FY 2016 compared with negative cashflow of SGD 867 million in FY 2015.

In his results briefing, President & CEO Mr. Wong Weng Sun said that, looking back on 2016, "we remain mindful that the prudent and proactive decisions we made in the prior years have helped the Group ride through the extremely challenging and volatile past 12 months."

He noted that, "despite the increasingly challenging business conditions, the Group returned to profitability in FY2016, and generated significant operating cash flows to support its operational and investment activities".

Mr. Wong said the Group successfully delivered all its key projects scheduled for delivery in 2016 to its customers.

Turning to rig delivery deferments, Mr. Wong said, "One of our customers, Perisai, recently announced its insolvency and is undergoing financial restructuring. We have taken steps to protect our interests in the two rigs which have been completed and technically accepted by Perisai.

"We continue to discuss with Oro Negro regarding their three jack-up rig deferments. The rigs have been completed and technically accepted by Oro Negro.

" On 9 January 2017, we announced that the standstill agreement for the delivery of North Atlantic Drilling's West Rigel semi-submersible rig had been further extended to 6 July 2017. We continue to actively market the rig for a charter contract or for sale at an acceptable price."

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