SembCorp Marine (S51.SG) down 4.2% at $4.82, after Upstream offshore & marine newspaper releases pricing details of Petrobras 28-rig tender, with SembMarine bids at higher end of scale; SMM bidding in two packages, in first (for 7 drillships) was third cheapest, in second (for 2 rigs) was fourth cheapest.

Brazilian shipyard EAS submitted lowest bids in both.

 

UOB KayHian says, “Sembcorp Marine appears to be out of the game while Keppel (BN4.SG) still has a good chance in rig contractor package as three different rig contractors—Etesco, Petroserv and Queiroz Galvao—intend to use Keppel's Brazilian shipyard to fabricate a total of 6 rigs.” Puts earnings forecasts, stock recommendations under review. 

 

However, Goldman Sachs says while bids are strong factors for consideration, “Petrobras will ultimately decide if the lowest bidder will be awarded the contracts.” Suggests despite pricing, SMM may still get some jobs. Keppel +0.7% at $10.86.