• Excluding impairments and provisions, the FY 2020 net loss was S$439 million
• After being shut in mid-April 2020 due to the COVID-19 restrictions, the Group’s production activities resumed gradually from early July 2020
• None of the Group’s existing projects were cancelled during the year
• The Group is actively tendering for more than 10 green energy projects and a similar number in Process Solutions
• As at end-2020, the Group has a net order book of S$1.82 billion

Sembcorp Marine had a difficult year battling the challenges brought on by the COVID-19 pandemic. Singapore’s COVID-19 containment measures implemented in April led to extended production stoppages and consequent delays in project execution and completion. Production activities resumed gradually from early July 2020 to reach almost full workforce levels near the end of November.

The Group engaged all its global customers and no existing projects were cancelled. However, Group revenue was severely hit by the project stoppages and delays. Despite a revenue upturn in 4Q 2020, full-year revenue was S$1.51 billion, 48% lower than revenue booked the prior year. With the decline in revenue, and including asset impairments and provisions made in 4Q 2020, the Group registered a higher net loss of S$583 million for the full year (FY 2019: S$137 million loss).

Outlook

Despite the present trajectory of a gradual economic recovery, it remains premature to predict a strong and sustainable recovery for the industry. Sembcorp Marine expects losses to continue. However, the Group will continue its strategic initiatives to build business resilience and position itself for future growth.

As global players in the world’s energy system transform and pivot in favour of cleaner energy, and build the appropriate energy infrastructure, it is anticipated that there will be increasing green opportunities.  Sembcorp Marine stands poised to benefit from this transition with innovative and sustainable solutions, underpinned by its technology bench strength across the global offshore, marine and energy value chain.

The completion of the Group’s Rights Issue in 2020 has strengthened our liquidity position and balance sheet. The Group will manage its liquidity prudently to ride through the current uncertainty and challenging business environment.

KeyFacts Energy Industry Directory: Sembcorp Marine