Sembcorp Marine (SembMarine) stressed that it will still be able to continue to “pursue its normal course of business and operations” should the proposed combination fails. “However, it will not be able to benefit from greater scale and synergies from the larger operational scale, broader geographical footprint and enhanced capabilities that the proposed combination is expected to bring,” reads the circular previously issued by the company.
The company, on Feb 6, issued a response to comments made on its circular in connection to the proposed combination with Keppel Offshore & Marine (Keppel O&M).
In its statement, the company reiterated that it had highlighted the risk factors that came with SembMarine operating as a standalone entity, where it would have to navigate an “even more competitive landscape” if the proposed combination fails.
Finally, the company referred to its interim business update where it had seen “significant newbuild contract wins” in October 2022. SembMarine’s net order book stood at $7.11 billion as at Sept 30, 2022.
It adds that its net debt to equity ratio had improved to 0.26 times as at Dec 31, 2022, from 0.53 times as at Sept 30, 2022.
“Such improvement is mainly attributed to cash collections in 4QFY2022 from long-term receivables and progress and delivery payments for projects from our customers. These will be used to pay payables and other working capital needs in FY2023,” says SembMarine.
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Shares in SembMarine closed 0.6 cent lower or 4.14% down at 13.9 cents on Feb 3.