SINGAPORE (Aug 20): After appreciating close to 50% to its peak of $2.81 in early Feb this year, the share price of Sembcorp Marine has dropped by about 40% to the current price of $1.67.
SembMarine’s transformation efforts to move up the value chain has resulted in new business opportunities but they require significant time and effort in project co-development with potential customers before orders are secured.
Such new-build EPC projects have detailed engineering and construction planning phase, which may take as long as six to 12 months before main construction activities and corresponding revenue recognition can take place. This is unlike building several rigs one after another based on the same design.
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