SembCorp Industries

[specuvestor]

I think SCI has improved better than I had expected under the new CEO. I had a sense the previous angmo CFO is pretty clueless, and the oil & gas management is obvious when compared to Keppel, so anecdotally I think the management quality has improved.

That said it's a utility trading 1.8X book with much improved cash flow and balance sheet. I think the transformation story can continue for a bit longer but VB should consider what is fair value

Demerger accounting cost of S$970m for full year and still paying 4cts final

Now that spin off is ex and market is closed, I would think SCI should trade closer to a utility company if it can progressively increase its dividend coupled with paying down its debt for next few years as interest rate environment remains low, though management quality might not be top notch