Sembcorp Marine - OCBC Investment 2015-10-23: Lowest quarterly profit since 4Q07

SEMBCORP MARINE LTD S51.SI 

Sembcorp Marine: Lowest quarterly profit since 4Q07 

 Stopped recognition for five rigs 

 Reversal of previous profits 

 Downgrade to SELL 

A drastic turn for the worse in 3Q15 

• Sembcorp Marine (SMM) reported a 34.0% YoY drop in revenue to S$1.13b and a 75.7% fall in net profit to S$32.1m, the worst quarterly showing since 4Q07. 
• 9M15 revenue met 72% of our full year estimates, but net profit only accounted for 52% due to a significant decline in gross profit margin to 8.0% in 3Q15 vs 16.5% in 2Q15. 

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