Sembmarine hit by labour shortages and project delays

Singapore shipyard group Sembcorp Marine says that Covid-19 and accompanying labour shortages have increased costs and delayed its building projects by at least a year.

The company said in a profit guidance statement ahead of its first half results for 2021 that it would be making full provision in its H1 results for cost increases in order to complete ongoing projects in this financial year.

“Since the onset of the Covid-19 pandemic in 1Q2020, the majority of the Group’s projects have been delayed by at least 12 months,” the company said.

Arising from the delays in project execution, the Group also expects to incur additional costs due to work re-scheduling, extra sub-contract work, additional material usage and other staff turnover related costs,” it added.