Sembcorp Marine (SembMarine) has reported a net loss of $192.1 million in the half-year ended June 30, shutdown of production activities at all its Singapore yards since April as a result of the Covid-19 pandemic.
The group also made a net loss of $6.8 million in the same period the year before. Revenue in the first half was $906 million, down 41 per cent from the same period a year earlier.
The president and chief executive of SembMarine Wong Weng Sun said: “We had positioned ourselves for recovery in 2020, but we were unexpectedly hit by Covid-19 and the collapse of oil prices.”
“Given the delays in executing our existing projects, and with new orders likely to remain depressed in 2020, the group now foresees that recovery will be pushed out to 2021 and beyond.”
Mr Wong Weng Sun has volunteered to take a 50% deduction.
Senior management will take a 15% pay deduction, middle management will take a 10% cut. All other staffs in Singapore and overseas will take a 5% decrease, where those whose incomes are $1,800 a month will maintain. SembMarine’s board is also contributing with a 10 per cent reduction in director’s fees this year, similar to FY2019.