Marine Business Drags on Sembcorp's Second-Quarter Earnings

Sembcorp Industries Ltd. (U96.SG) Thursday reported a 36% year-over-year decline in its second-quarter net profit, weighed down mainly by lower earnings at its marine business.

Net profit in the April-to-June quarter was 55.3 million Singapore dollars (US$40.7 million), compared with S$86.5 million last year, Sembcorp Industries said in a statement to the Singapore Exchange.

The marine-to-power sector conglomerate said turnover rose 23% to S$2.28 billion, though costs rose a faster 25% to S$1.95 billion.

"With a deep industry downturn on one hand and market disruptions on the other, we recognize the need to be both prudent and agile," said Neil McGregor, the company's chief executive. Sembcorp will try to cut costs but will keep an eye out for growth opportunities, he said.

Sembcorp expects global exploration and production spending to rise. Offshore daily charter rates appear to have stabilized and utilization rates have begun to improve, it added.

Sembcorp said it expects its utilities business in China to report lower income, though in Singapore, business will be stable.

Write to Gaurav Raghuvanshi at gaurav.raghuvanshi@wsj.com

(END) Dow Jones Newswires

August 03, 2017 05:51 ET (09:51 GMT)