FW:Sembmarine profits rise on rigbuilding boom

The increase in profit came as the groups rigbuilding arm reported 51% increase in turnover to SGD3.5bn for the year, up from SGD2.3bn in 2012. Rigbuilding now accounts for 65% of the company's turnover.

Contracts secured in 2013 totalled SGD4.2bn, bringing the company's backlog to SGD12.3bn, with deliveries though until 2019.

The timing of projects was less favourable in the ship conversion and offshore sector, which accounted for 22% of group turnover at the group, leading to a 14% year on year decline in turnover to SGD1.2bn. Ship repair turnover for the year was up by 6% to SGD681m.

The company's strategy for the future is one of increasing efficiency as it predicts a tight labour scenario in Singapore, due to stricter foreign labour quotas, and challenging margins, despite its healthy orderbook. Sembmarine's Brazilian yard is on track to open in the second half of 2014 and last year secured drillship orders.

Late in 2013 the company announced that its yards in Singapore, Sembawang Shipyard, Jurong Shipyard, PPL Shipyard, Jurong SML and SMOE will be relocated to its new Tuas facility. The Tuas yard and Brazilian yard Estaleiro Jurong Aracruz, which is due to open in the second half of this year, represent an investment of over SGD1.5bn by Sembmarine.