Sembcorp Marine

Sembcorp Marine reaches settlement with Sete Brasil over drillship contracts

SINGAPORE (Oct 7): After dragging on for some two-and-a-half years, Sembcorp Marine (SembMarine) has finally reached a settlement with Sete Brasil over seven drillship contracts.

The contracts, secured by various SembMarine subsidiaries from Sete Brasil’s subsidiaries, were worth a total of US$5.6 billion ($7.7 billion).

SembMarine in April 2016 had commenced arbitration proceedings against various subsidiaries of Sete Brasil for claims under the contracts. This came after a filing by Sete Brasil for a judicial restructuring in Brazil.

Worst is over for Singapore shipyards but still a long way to complete recovery: UOB Kay Hian

SINGAPORE (Dec 17): UOB Kay Hian is maintaining a “market weight” rating on Singapore’s shipyards, with Sembcorp Industries (SCI) as its preferred pick.

The research house has a “buy” call on SCI with a target of $3.41, as the group has a stable utilities business, and exposure to Sembcorp Marine’s (SMM) improving financials.

It adds that SMM is the most direct proxy to the recovery play as it has the potential of breaking even at the operating level in 2019 and the stock is trading near -1SD to its long-term mean price-to-book ratio.

SembMarine wins renewable energy engineering contracts worth $200 mil

SINGAPORE (Oct 29): Sembcorp Marine (SMM) has won two new renewable energy engineering projects collectively worth over $200 million from Denmark’s Ørsted Wind Power as well as Norwegian shipping company Norled AS.

The first contract comes from Ørsted Wind Power’s subsidiary Optimus Wind Limited for engineering, procurement, construction, hook-up and commissioning works on two topsides.

With a combined weight of approximately 8,700 tonnes, they will be fabricated at SMM’s integrated yard facilities for delivery in the first quarter of 2021.

SembMarine inks US$166 mil agreement with Teekay Offshore for works on Petrojarl Varg FPSO

SINGAPORE (Oct 22): Sembcorp Marine says that its wholly-owned subsidiary, Sembcorp Marine Rigs & Floaters, has signed an agreement with Varg, a wholly-owned company of Teekay Offshore Partners, for engineering, procurement and construction works related to the modification, repair and life extension of the Petrojarl Varg FPSO.

The contract, once finalised, is expected to be worth about US$166 million ($229 million).

Yangzijiang may be the only O&M stock to deliver stronger q-o-q results this season: CGS-CIMB

SINGAPORE (July 13): CGS-CIMB Securities is maintaining its sector “overweight” on Singapore’s offshore & marine (O&M) industry with expectations of Yangzijiang Shipbuilding to deliver stronger q-o-q earnings on stronger shipbuilding margins.

The counter has been rated “add” with a target price of $1.27, ahead of its 2Q results due Aug 8.

Sembcorp Marine scores first polar expedition cruise ship design contract

SINGAPORE (June 12): Sembcorp Marine announced that its fully-owned subsidiary, LMG Marin, has secured its first polar expedition cruise ship design contract, signed with Croatia’s Brodosplit Shipyard.

The ship will be constructed for Quark Expeditions, which specialises in expeditions to the Arctic and Antarctic aboard purpose-built expedition vessels.  

According to the contract, LMG Marin will deliver a basic design package, which is scheduled for completion by the 3Q20.

Sembcorp Marine secures contract to construct & integrate Shell Offshore's Vito FPU

SINGAPORE (May 21): Sembcorp Marine has secured a contract by Sell Offshore to construct and integrate the hull, topsides and living quarters of the Vito semi-submersible Floating Production Unit (FPU).

This contract includes installation of Shell-furnished equipment, and follows a letter of intent between the two parties earlier in Dec 5, 2017.

See: SembMarine signs LoI to construct & integrate Shell Offshore’s Vito FPU

This small-cap O&M play is finally ready to ride an industry upcycle

SINGAPORE (Mar 22): CIMB Research is initiating coverage on Dyna-Mac Holdings (DMHL) at “add” with an 18-cent price target, which is based on 1.8 times CY18 book value, DMHL’s CY12-17 mean.

DMHL, a provider of engineering & construction services to the offshore oil & natural gas sectors, is 24.4% owned by Keppel Corporation.

Singapore's O&M sector kept on 'overweight' despite bribery allegations

SINGAPORE (Dec 26): CIMB is maintaining its “overweight” recommendation on the offshore and marine (O&M) sector.

The research house has highlighted Keppel Corporation (KEP) and Sembcorp Marine (SMM) as its “buy” picks with target prices of $8.58 and $2.49 respectively.

Last Friday, Keppel Offshore and Marine (KOM) was fined US$422 million ($570 million) as part of a resolution with US authorities, Brazil and Singapore to bring closure to the investigations into corrupt payments made by former KOM agent in Brazil, Zwi Skornicki.

Sembcorp Marine to dispose semi-submersible rig for $672 mil

SINGAPORE (Dec 26): Sembcorp Marine announced Tuesday that wholly-owned subsidiary Jurong Shipyard has agreed to sell its semi-submersible rig, West Rigel, for US$500 million ($672 million).

West Rigel was originally contracted by North Atlantic Rigel (NARL), a subsidiary of North Atlantic Drilling (NADL) and Seadrill. Both Seadrill and NADL have applied for restructuring under Chapter 11 in the United States.

NARL and Jurong Shipyard had entered into a standstill agreement in December 2015, and have extended the agreement to July 2018.

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