SINGAPORE (May 14): Analysts are mostly neutral on Sembcorp Marine (SembMarine), but with hopes that a restructuring within the Sembcorp-Keppel Group will help the company.

Yesterday, SembMarine announced its interim business update for 1Q20, which reported that the company has been adversely affected by the Covid-19 pandemic. Measures to contain the pandemic have severely disrupted transportation, supply chains, manpower access and plant operations, with resulting reduction in the demand for oil and energy.

A separate major development has been the collapse in oil prices from March 2020. The current low and volatile oil price levels have resulted in major oil companies deferring their final investment decisions (FIDs) for projects and cutting their capital expenditure (CAPEX) significantly for 2020.

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