OREANDA-NEWS. Sembcorp Marine achieved a 4% year-on-year increase in net profit from USD 244 million to USD 254 million for the six months ended 30 June 2014, amid still challenging market conditions.

Group turnover for the first half of 2014 grew 23% year-on-year to USD 2.68 billion, which compares with USD 2.17 billion for the corresponding period in 2013. The higher revenue came mainly from increased contribution from the Group's rig building activities and from offshore platform projects.

In 1H 2014, Group EBITDA (earnings before interest, tax and depreciation) increased by 6% year-on-year to USD 359 million, while operating profit grew 5% to USD 303 million, from USD 290 million in the previous corresponding period. This was despite a decline in other operating income to USD 16.6 million.

At the pre-tax level, Group profit of USD 321 million was 5% higher than the USD 305 million achieved in the first half of last year. Associate and joint venture income increased 55% to USD 17.5 million.

Turnover for the Rig building sector increased 36% year-on-year from USD 1,226 million to USD 1,670 million. The Group delivered six jack-up rigs in the first half, with another eight in the work in progress stage.

The Fixed platform segment registered a 30% increase in revenue from USD 413 million to USD 535 million in 1H 2014, with two major project deliveries in 2Q 2014.

Offshore and conversion revenue declined 40% from USD 206 million in 1H 2013 to USD 123 million in 1H2014, with just one project delivery during the period.

Ship repair revenue was 2% lower at USD 307 million in 1H 2014 compared with USD 314 million in the corresponding period in 2013 due to timing in recognition of repair projects.