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SEMBCORP Marine has exceeded market expectations by posting a 7.6 per cent hike in net profits to $138.1 million for the second quarter.
The oil rig maker made the improved profit on the back of an 8 per cent rise in revenue to $1.5 billion.
Despite the smallest profit gain in six quarters - partly due to lower contribution from Cosco Shipyard Group - its results took analysts by surprise.
Five analysts recently polled by Dow Jones predicted an average profit of $123 million.
Since the start of the year, the group has clinched $1.12 billion-worth of orders including two semi-submersible rig contracts from Norwegian client SeaDragon Offshore and two offshore platforms from Premier Oil Natuna Sea.
Its latest contract win was announced yesterday.
Subsidiary Jurong Shipyard has snagged a $160 million deal to convert an oil tanker to a floating production storage and offloading (FPSO) vessel for Modec Offshore Production Systems.
This latest order brings Sembmarine's net order book to $7.9 billion, with deliveries extending until early 2012.
Sembmarine said it expects positive contributions from the conversion contract for Modec to feed through to its earnings for the year ending Dec 31.
It is proposing an interim dividend of 5cents per share to be paid out to shareholders on Sept 1. The dividend is unchanged from that paid out this time last year and reflects the group's 'need to conserve cash for growth opportunities'.
Mr Wong Weng Sun, the firm's newly appointed chief executive and president, said such opportunities included looking at possible acquisition in Brazil.
He added: 'Everyone is anxious to build up their order books. Going forward, we have some opportunities outside such as work for Petrobras and SeaDragon.'
Brazilian state oil company Petrobras announced in January that it had earmarked US$174.4 billion (S$250 billion) for capital outlay over the next four years, including spending on new exploration and production projects.
Earnings per share for the quarter were 6.71 cents, up 7.7 per cent on the 6.23 cents for the same period last year.
Net asset value per share rose 15.8per cent, from 64.11 cents last year to 74.21 cents as at June 30.
For the first half, profit rose 17.6 per cent from $219.6 million to $258.3 million. Revenue increased 24.3 per cent from $2.3 billion to $2.86 billion.
Ahead of the earnings announcement, Sembmarine shares closed unchanged at $3.18.
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