SembCorp Marine (SembMarine) posted its third quarter and nine-month results for the year, announcing a sharp decrease in total group revenue and activity in the rigs, floaters and offshore platforms segments.
Throughout the period, the Singapore-based company implemented a series of cost-cutting measures to cope with the reduced cash flow, resulting in a reduction of about 8,000 jobs, including sub-contractors.
“We have relocated excess manpower from drilling to non-drilling work. (…)We have also terminated less efficient sub-contractors and allow for natural attrition of our employees”, Sembcorp Marine President & CEO, Wong Weng Sun, said.
SembMarine Cuts 8,000 Jobs amid Negative Results
“In addition to manpower optimisation, we have taken measures to reduce our operating costs by implementing salary freeze and adjustments to the variable remuneration components for management staff since 2015,” he added.
The CEO explained that companies continue to cut on new offshore exploration and production projects, but there are some prospects in the liquefied natural gas (LNG) value chain.
SembMarine delivered the Maersk Highlander semi-sub earlier this year
“The macro environment remains challenging, with global economic growth uneven and muted. The outlook of the oil & gas sector is uncertain and recovery is expected to be long drawn”, he said.
“Sembcorp Marine expects to navigate these tough times, having gone through several down-cycles in the past,” he added.
Order Book Remains Robust for SembMarine
Over the period, the company noted a total of five significant project deliveries, namely the Noble Lloyd Noble, the world’s largest ultra high-specification harsh environment jack-up rig.
The unit delivered to Noble Corp. is the first offshore structure of the kind to fully comply with Norwegian and UK regulations and will be deployed at Statoil’s Mariner field development.
Other major projects include the Safe Zephyrus harsh environment semi-submersible accommodation vessel delivered to Prosafe, and the Prof. John Evans Atta Mills FPSO delivered to MODEC.
As well as this, the company delivered the Maersk Highlander jack-up to Maersk and the Ivar Aasen process platform, drilling and living quarters topsides to Det norske.
Meanwhile, one of the main projects the company is currently involved in is the engineering and construction of the world’s largest semi-submersible crane vessel for Heerema.