Singapore-based global marine and offshore engineering group Sembcorp Marine has announced its full-year results, reporting a net profit of $6m for the fourth quarter (Q4) of 2018 and a net loss of $74m for the full year.

Sembcorp says this net loss, and the full-year operating loss of $52m, were caused by continued low overall business and the sale of the West Rigel semi-submersible rig at a loss of $34m. In comparison, 2017’s full-year operating profit was $306m, with a net profit of $260m.

Group revenue was $4.89bn in 2018, compared with $3.03bn generated in 2017. This increase in revenue is attributed to the delivery of seven jack-up rigs to Borr Drilling and one jack-up rig to BOT Lease (BOTL), the sale of the West Rigel rig and higher percentage recognition for newly secured offshore production projects and ongoing drillships in 2018.

Sembcorp’s full-year turnover for rigs and floaters was $4.15bn in 2018, compared to $1.72bn in 2017.

The full-year revenue created by offshore platforms was $184m in 2018, a decrease from 2017’s full-year revenue of $732m. Sembcorp claims this decrease in revenue is due to the completion of existing projects and fewer contracts.

Sembcorp was able to complete and deliver three topside modules in June 2018 for the Culzean platform projects in the North Sea.

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In a statement, Sembcorp said: “Global capex spend for offshore exploration and production (E&P) is expected to improve further. While offshore drilling activities have increased, offshore rig orders will take some time to recover as the market remains oversupplied.

“Offshore production units are expected to dominate orders pipeline and Sembcorp Marine is responding to increasing enquiries and tenders for innovative engineering solutions.

“Overall business volume and activity for the Group, while stabilising, is expected to remain relatively low. We will continue to take steps to manage our costs, cash flows and gearing to address our balance sheet and to capitalise on new business opportunities.”