Sembcorp Marine, a provider of marine and offshore engineering services, on Tuesday swung to quarterly profit due to lower share of losses from associates and joint ventures.
Sembcorp Marine posted a net profit of S$2.7 million in the three months ended September 30 compared to a loss of S$21.8 million in the corresponding period a year earlier.
Operating profit, however, slumped 64 percent to S$316.9 million due to lower contribution from floaters and offshore platform projects, and the effects of contracts termination and inventories write down.
Revenue slumped 64 percent to S$316.9 million in the quarter, the company said in a regulatory filing.
Earlier this month, Sembcorp Marine signed agreements for the sale of nine jackup rigs to Borr Drilling for US$1.3 billion.
Borr Drilling has made an upfront payment of about US$500 million and the will be paid at any time within five years from the respective delivery dates of the rigs, the company said.
Shares in Sembcorp Marine rose 0.5 percent to S$1.92 on the Singapore Exchange on Tuesday. The stock has gained 39 percent so far this year, giving it a market value of about S$4 billion.