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In 1Q2022, Sembcorp Marine's cash flow, cash position and liquidity management improve as gearing drops

Goola Warden
Goola Warden5/18/2022 07:37 AM GMT+08  • 2 min read
In 1Q2022, Sembcorp Marine's cash flow, cash position and liquidity management improve as gearing drops
SCM: Ammonia bunkering vessel
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In a business update, Sembcorp Marine (SCM) announced that its cash flow and liquidity management have improved following the completion and successful deliveries of several projects in 1Q2022. As a result, the Group’s net debt/equity ratio has improved to 0.38 times at end 1Q2022 from 0.49 times at end 4Q2021.

Since the FY2021 results update, there has been no further disbursement of the proceeds from the September 2021 $1.5 billion Rights Issue. The balance of the net proceeds remains at approximately $720 million to be used for general corporate purposes, including working capital. The Group expects to have the necessary liquidity to fund its operations for the foreseeable future.

As at end-1Q2022, SCM has a net order book of $1.75 billion. This consists of $1.51 billion of projects under execution (with a total original contract sum of $5.45 billion) and $0.24 billion of ongoing Repairs & Upgrades projects. Renewables and cleaner/green solutions comprise approximately 65% of the Group’s net order book.

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