SINGAPORE (THE BUSINESS TIMES) – Sembcorp Marine (Sembmarine) on Wednesday morning (March 31) gave notice of recording three consecutive years of pre-tax losses based on its audited full-year consolidated accounts.
The marine and offshore engineering group’s six-month average daily market cap as at March 30 was $1.89 billion, which means the group still meets the financial entry criteria to avoid being placed on the Singapore Exchange’s (SGX) watch list.
Firms are placed on the SGX watch list if they record losses for the three latest consecutive financial years and have an average daily market cap of under $40 million over the last six months.
Prior to its announcement, Sembmarine had ended Tuesday at a two-month high of 17.1 Singapore cents, up a cent or 6.2 per cent the day after it said it clinched a £600 million ($1.12 billion) UK wind farm contract together with GE Renewable Energy’s Grid Solutions.
For the full year ended Dec 31, 2020, the group’s net loss had widened to $582.5 million from $137.2 million a year ago. This brings its loss per share (LPS) for FY2020 to 10.88 cents, from a restated FY2019 LPS of 6.32 cents.
The group attributes its FY2020 loss mainly to Covid-19, which contributed to delays in projects execution and securing of new projects; higher overall costs incurred for all projects; as well as $144 million of asset impairments and provisions.
No dividend was proposed for the financial year.
Last year, Sembmarine also issued notice that it had recorded pre-tax losses for three consecutive years. Its six-monthly average daily market capitalisation at the time was $2.46 billion as at April 2, 2020.