Sembcorp Marine has booked a profit in the fourth quarter, which helped the company overturn its annual loss for the full year.
The Singaporean shipbuilder reported net quarterly earnings of SGD 34m ($24m), against red ink of SGD 537m a year earlier.
Sembcorp’s fourth quarter positive result came on the back of SGD 830m revenue, which was 38% lower than the corresponding quarter of 2015.
For the full year 2016, the company posted net profit of SGD 79m, versus a SGD 290m loss.
Wong Weng Sun, president of Sembcorp, said: “Despite the increasingly challenging business conditions, the group returned to profitability in 2016 and generated significant operating cash flows to support its operational and investment activities.”
Sembcorp was able to deliver all of its major newbuilding projects last year and added it is in active discussions for new orders.
Wong added: “As we look 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.”
Sembcorp’s net orderbook stood at SGD 7.8bn as of 31 December 2016.
