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Group turnover at $1,217 million was 46% higher as compared with $831 million in 2Q 2011. The higher turnover was due to the progressive recognition of projects, in particular in the rig building sector which saw turnover increase 66% from $400 million in 2Q 2011 to $664 million for the corresponding period in 2012. During the quarter, three more jack-up rigs achieved initial recognition with one unit of semi-submersible rig, the Atwood Condor, delivered to owner ahead of schedule. In comparison, the corresponding period in 2011 saw only two jack-up rigs achieve initial recognition, four turnkey semi-submersible rigs in various progressive recognition stages and the delivery of semi-submersible rig, Atwood Osprey. The ship conversion/offshore sector registered a 41% increase in turnover at $364 million in 2Q 2012 as compared with $259 million for the same period in 2011. One unit of FPSO conversion project achieved initial recognition with five other projects in various progressive stages of recognition as compared with eight projects in various stages of construction during the same period in 2011. The turnover for the ship repair sector in 2Q 2012 at $179 million was 9% higher as compared with the corresponding period in 2011. Financial Highlights 
1H 2012 VERSUS 1H 2011 On a half yearly basis, Group turnover for 1H 2012 at $2,160 million was 30% higher as compared with $1,660 million for the same period in 2011. Group operating profit was 14% lower at $280 million while gross profit at $353 million was 10% lower in 1H 2012. Group pre-tax profit was 9% lower at $328 million as compared with $361 million for the same period in 2011. At net profit level, it was $256 million in 1H 2012 as compared with $300 million in 1H 2011, attributable mainly to the product mix and timing in recognition of the rig building and ship conversion/offshore projects. INTERIM DIVIDEND The Board of Directors of Sembcorp Marine is recommending a one-tier tax-exempt interim dividend of 5.00 cents per share, the same amount as paid in 1H 2011. In terms of payout ratio, it is 41% as compared with 35% in 1H 2011. The one-tier tax-exempt interim dividend will be paid on 31 August 2012. OUTLOOK The Group has secured contract orders worth a total of $3.1 billion (excluding ship repair) since the start of the year, growing the Group’s net order book from $5.1 billion as at end 2011 to $6.6 billion, with completion and deliveries extending till 2Q 2015. Amid the economic uncertainty and volatile global market conditions, the fundamentals for offshore oil and gas activities remain intact driven by demand for technically advanced, versatile and efficient rigs that are capable of shallow and deepwater drilling. For the deepwater segment, continued growth is expected given the tight supply of deepwater rigs. Demand for floating platforms and FPSOs is expected to be robust as more discoveries move into development phase. Sembcorp Marine with its strong track record and proven expertise is well-positioned to benefit from the growing opportunities in this sector. Despite the challenging shipping market environment, there is continued demand from LNG carriers for repairs and life extension work. Repair and upgrading work for cruise ships and offshore vessels continue to be strong. Demand for the Group’s big docks remains strong given the stable base load and steadfast support from the yards’ Alliance/FCC and long-term customers. Sembcorp Industries press release |
2Q 2012 Net Profit at $143 Million