Sembcorp Marine Ltd., the world’s second-largest builder of oil rigs, posted its first quarterly loss in at least 12 years after it took a one-time charge and as plunging oil prices pushed customers to delay or cancel orders for offshore drilling projects.
The net loss in the fourth quarter totaled S$537 million ($384 million), the Singapore-based company said in a statement Monday. The company took impairment charges and provisions of S$609 million for projects of its client Sete Brasil Participacoes SA and others. It’s the first quarterly loss since the company started reporting data in 2003, according to Sembcorp Marine’s website.
Builders of floating facilities for drilling and production have reported losses in recent quarters as oil plunged more than 40 percent in the past year, leading companies to cut spending and cancel orders. Sembcorp Marine’s bigger rival Keppel Corp. was also hit as Sete Brasil, a major customer for the two Singaporean companies, is running out of funds and hasn’t paid both rigbuilders for more than a year. Keppel said in January it took a charge of S$230 million because of Sete Brasil.
Brazil Energy Insight 
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