Singapore’s Sembcorp Marine has guided for a fourth quarter in the red, which will result in smaller earnings for the full year.

The shipbuilder said a challenging operating environment and customers looking to defer their rig orders will take a toll on the company’s results.

Sembcorp saw its profit slump by SGD 100m ($70.9m) to SGD 32m in the third quarter.

Its quarterly report said at the time: “Low oil prices and the oversupply situation in the global offshore exploration segment continues to weigh on offshore rig utilisation and charter rates, leading to the lack of new charter contracts and the cancellation of existing charters.”

Sembcorp’s