Sembcorp Marine Swings To Loss In Q3, Slashes Jobs

SINGAPORE - Singapore's Sembcorp Marine Ltd swung to a loss in the third quarter and the rig builder's revenue was hurt by customers deferring rig deliveries amid a protracted downturn in the oil and natural gas market.

Chief executive Wong Weng Sun also said that the firm had "terminated less efficient sub-contractors and allowed for natural attrition of our employees", resulting in a reduction of about 8,000, The Straits Times reported.

The company posted a net loss of S$21.8 million for the three months ended Sept. 30, compared with a net profit of S$32.1 million a year ago. It said the bottomline was hurt by higher financing costs, share of losses from associates and foreign exchange impact.

The company, majority-owned by industrial conglomerate Sembcorp Industries Ltd, said revenue dropped 21 per cent.

Sembcorp Marine's net order stood at S$8.4 billion. Excluding the orders for drillships from rig leaser Sete Brasil, which has filed for bankruptcy protection, the order book was worth S$5.2 billion.

The rig builder said several rigs due for delivery have been deferred. "We have taken steps to protect our interests and are evaluating other courses of action, including sale to third parties," it added.

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