Home News Offshore & Marine

Sembmarine shows recovery signs but is smaller now

Goola Warden
Goola Warden5/18/2022 09:40 PM GMT+08  • 5 min read
Sembmarine shows recovery signs but is smaller now
oil production platform
Font Resizer
Share to WhatsappShare to FacebookShare to LinkedInMore Share
Scroll to top
Follow us on Facebook and join our Telegram channel for the latest updates.

Once as blue (a chip) as the oceans where its rigs, floaters and platforms operated on, Sembcorp Marine (Sembmarine) is now worth a few cents per share because of two rights issues in 2020 and 2021 which raised a total of $3.6 billion due to the collapse in oil prices and its Brazilian contracts.

In the years leading up to 2014 and 2015, Singapore was the world’s largest rig builder — only to be overtaken by the Chinese yards as the years wore on. Now, just as Sembmarine is recovering on the back of higher oil and gas prices, it is losing its identity as an independent standalone company.

In a business update, Sembmarine announced that its cash flow and liquidity management have improved following the completion and deliveries of several projects in 1QFY2022 ended March. As a result, the group’s net debt/equity ratio has improved to 0.38x at end 1QFY2022 from 0.49x at end 4QFY2021. This translates into lower net debt levels of around $800 million, compared with around $1.97 billion as at end 4QFY2022.

For more insights on corporate trends...
Sign In or Create an account to access our premium content.
Subscription Entitlements:
Less than $9 per month
Unlimited access to latest and premium articles
3 Simultaneous logins across all devices
Bonus unlimited access to online articles and virtual newspaper on The Edge Malaysia (single login)
Loading next article...
The Edge Singapore
Download The Edge Singapore App
Google playApple store play
Keep updated
Follow our social media
Subscribe to The Edge Singapore
Get credible investing ideas from our in-depth stock analysis, interviews with key executives, corporate movements coverage and their impact on the market.
© 2022 The Edge Publishing Pte Ltd. All rights reserved.
Unlock unlimited access to premium articles with less than $9 per month. Subscribe Now