Sembcorp Marine (SembMarine)

Despite slow recovery, some locally listed O&M players outperform STI

SINGAPORE (Dec 2): Year to date, the Straits Times Index has climbed 4.8% to close at 3,215.53 points on Nov 27. But more than a handful of the locally listed companies that operate across the oil and gas (O&G) value chain have outperformed the benchmark index. While the low base certainly helps with the outperformance, the share price gains can be attributed to various factors, including improved fundamentals, mergers and acquisitions and disposals, amid a slow recovery in the sector.


SembMarine 3Q net loss widens to $52.6 mil; outlook stays bleak

SINGAPORE (Nov 13): SembCorp Marine reported a net loss for 3Q19 ended Sept on higher operating losses.

For 3Q19, net loss came in at $52.6 million, or 2.52 cents, compared with a net loss of $29.8 million, or 1.42 cents, in the same period last year.

SembMarine says the weaker bottomline was partly due to lower business activities and the accelerated depreciation of $10 million arising from the group’s transformation and yard consolidation strategy. In addition, the higher than expected loss also resulted from additional costs for rigs & floaters projects.

IMF cuts growth forecast but MAS expects recovery; Kimly buys canteens

SINGAPORE (Oct 28): The International Monetary Fund has slashed its 2019 growth prediction for Singapore to 0.5%, down from its July estimate of 2%. This is IMF’s second downward revision for the city state; in its World Economic Outlook report in April, it had forecast a growth of 2.3%.

The situation is not expected to get much better next year, either. “Growth is projected to remain subdued at 1% in 2020, given Singapore’s dependence on external trade,” Jonathan Ostry, Deputy Director of the IMF’s Asia and Pacific department says at a press conference on Oct 23.


Temasek's partial offer to unlock value in Keppel causes its share price, related counters to jump

SINGAPORE (Oct 28): On Oct 21, Temasek announced that its wholly-owned subsidiary Kyanite Investment Holdings intends to make a partial offer for a 30.55% stake in Keppel Corp, subject to certain preconditions. If successful, it will raise Kyanite’s stake in the conglomerate to 51%.


Sembcorp Marine triggers SGX query as shares jump 12% on heavy trading

SINGAPORE (Oct 21): Sembcorp Marine (SembMarine) has been issued with a query from Singapore Exchange Regulation (SGX RegCo) after its share price jumped 11.7% on Monday afternoon. 

This marks the company’s second query from the market regulator over the span of four months. 

Shares in SembMarine opened at $1.20 on Monday, and remained relatively stable. However, after the mid-day break, the counter surged to as high as $1.34, with some 15.7 million shares traded as at 2.57pm. 

CGS-CIMB buoyant on Keppel, SembMarine following news of Sete Brasil settlement

SINGAPORE (Oct 8): CGS-CIMB Research is keeping its “overweight” rating on the offshore & marine sector, following news that creditors – including Keppel Offshore & Marine (Keppel O&M) and Sembcorp Marine (SembMarine) – have finally reached a settlement with Sete Brasil.

Sembcorp's green energy business deeply undervalued: DBS

SINGAPORE (Sept 12): DBS Group Research is maintaining its “buy” recommendation on Sembcorp Industries (SCI) with a target price of $3.20.

In a Sept 12 report, analyst Ho Pei Hwa says, “SCI offers a unique value proposition as a defensive utilities business, and as a proxy to ride the cyclical O&M recovery.”

Hong Kong formally withdraws extradition bill; Singapore's GDP forecast lowered

SINGAPORE (Sept 9): After 13 long weeks of protests in Hong Kong, an end to the political crisis in the Special Administrative Region may be in sight. On Sept 4, the city’s embattled leader Carrie Lam formally announced the withdrawal of the extradition bill, meeting one of the five demands of the protesters.


Are SembMarine's latest order wins a sign it is reversing out of the red?

SINGAPORE (Sept 3): Earlier in April this year, Taiwan announced that it is planning to increase its offshore wind energy generation capacity by 5GW over a five year period from 2026 for commercial use. This move is part of the country’s third phase of offshore wind energy development project.

Taiwan’s Ministry of Economic Affairs has invited local and foreign wind energy developers to coordinate on aspects such as maintenance, installation, and underwater foundation.

Sembcorp Marine clinches $400 mil in new contracts

SINGAPORE (Sept 2): Sembcorp Marine has won a slew of new projects valued at $400 million ranging from engineering solutions for offshore gas and wind farm developments as well as cruise ship upgrades.

In these contracts, SembMarine teamed up with various repeat and new customers. The group also succeeded in breaking into the highly competitive offshore wind sector in Taiwan.

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