Sembcorp Marine's 3Q2009 Results Announcement

Singapore, Nov 04, 2009

Sembcorp Marine achieved a record quarter with PATMI at $145 million, the highest quarterly PATMI ever attained. Group turnover at $1,520 million was 33% higher as compared with the $1,144 million registered for the corresponding period in 2008.

Group operating profit at $174 million was 22% higher than the same quarter in the previous year. Group pre-tax profit at $183 million was marginally higher than the $181 million achieved in 3Q 2008 attributable to higher operating margins from rig building projects and offset by the substantially lower contribution from associate Cosco Shipyard Group.

On a nine-month basis, Group turnover at $4,382 million was 27% above the $3,446 million achieved for the corresponding period in 2008. Group operating profit increased 43% to $475 million as compared with $333 million recorded in the previous year. At pre-tax level, Group profit increased 12% to $513 million from $457 million in 9M 2008. The increase was due mainly to the higher operating margins from rig building, offshore and ship conversion projects and offset by the substantially lower contribution from Cosco Shipyard Group.

For 9M 2009, Group attributable profit at $403 million was 12% higher compared with the same period in 2008.

Outlook

The Group has a net order book of S$6.7 billion comprising rig building, ship conversion and offshore projects. This includes the S$1.12 billion in new orders secured in the first half of 2009. These secured projects will provide a ready baseload of work and keep the Group’s shipyards busy with progressive completion and deliveries from 4Q 2009 until 2012.

With the world economy showing some signs of recovery in the third quarter of 2009, driven largely by Asia, the demand for energy is expected to grow. Fundamentals for the offshore oil and gas sector remain intact with prices of oil stabilising within the US$70 to US$80 a barrel range. The long-term fundamentals driving deepwater exploration and production activities are expected to continue in order to replenish declining oil and gas reserves and to increase production to meet growing energy demand.

The ship repair business is expected to remain reasonably good for the rest of 2009 with the big docks well booked and the strong support provided by the Group’s Alliance/FCC and regular customers. Singapore’s strategic location and its reputation as an international maritime centre, coupled with the Group’s strategic alliances and partnerships fostered with long-term customers, will provide a stable base-load for the Group’s ship repair sector.

For media and analysts enquiries, please contact:

Ms Judy Han
Senior Vice President
Investor Relations & Communications
Tel No: (65) 6262 7203
Fax No: (65) 6261 0738
Email: judy@sembcorpmarine.com.sg
Website: www.sembcorpmarine.com.sg

Attachment: SCM 9M2009 Financial Statements

Attachment: SCM 9M2009 Press Release

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