Sembcorp Marine had a difficult year battling the challenges brought on by the COVID-19 pandemic. Singapore’s COVID-19 containment measures implemented in April led to extended production stoppages and consequent delays in project execution and completion. Production activities resumed gradually from early July 2020 to reach almost full workforce levels near the end of November.
The Group engaged all its global customers and no existing projects were cancelled. However, Group revenue was severely hit by the project stoppages and delays.
Despite a revenue upturn in 4Q 2020, full-year revenue was S$1.51 billion, 48% lower than revenue booked the prior year. With the decline in revenue, and including asset impairments and provisions made in 4Q 2020, the Group registered a higher net loss of S$583 million for the full year (FY 2019: S$137 million loss).
Following a periodic review of the Group’s assets and the assumptions used to assess the carrying values of assets, a total of S$162 million (pre-tax) of asset impairments and provisions were recorded in 4Q 2020. On a post-tax basis, the impairments and provisions amount to S$144 million