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DISPOSAL OF INTEREST IN COSCO SHIPYARD GROUP CO., LTD
http://infopub.sgx.com/FileOpen/Announce...eID=429666
Kind of expected actually. Par down their debts.
Winston Churchill:-
“The inherent vice of capitalism is the unequal sharing of blessings; the inherent virtue of socialism is the equal sharing of miseries.”
"The farther backward you can look, the farther forward you are likely to see."
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Both keppel Corp and sembcorp have changed strategy to focus on non-drilling solutions such as LNG, ship repairs, etc. Dont think they have much of a choice anyway. Only time will tell if this strategy will work. Petrobras has continued to post losses (the last I read).
Mean time, other businesses such as utilities and property would have to pick up the slack.
Don't think they will merge - just a wild guess. The strategic review by sembcorp marine is probably just another sort of thing which the new CEO wants. Happy to be proven wrong.
Winston Churchill:-
“The inherent vice of capitalism is the unequal sharing of blessings; the inherent virtue of socialism is the equal sharing of miseries.”
"The farther backward you can look, the farther forward you are likely to see."
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Based on 1H17 reporting, 1 small bright light is actually Transocean requesting SCM to resume the building of the 2 drillships. Counter-intuitively, Transocean is going into the exploration portion of upstream E&P by selling all its rigs and focusing on drillships - In other words, it is going higher up in the upstream.
Actually, i think they need a rights issue after the Brazilian and Tuas Shipyard Phase1/2 spending in the boom years. But so far, i am proven wrong (or haven't been proven right)
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Net debt is still increasing. Rights issue may happen still happen as it's harsh long winter - to take the words of others. Both companies have been selling small shipyards and laying off staff, etc to keep costs down.
This is a really wild guess - I was thinking that they may actually sell off their Brazil shipyard. Doubt so as I can imagine the backlash but then again I maybe thinking too much lah
Winston Churchill:-
“The inherent vice of capitalism is the unequal sharing of blessings; the inherent virtue of socialism is the equal sharing of miseries.”
"The farther backward you can look, the farther forward you are likely to see."
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29-07-2017, 05:17 PM
(This post was last modified: 29-07-2017, 05:17 PM by CY09.
Edit Reason: edits
)
One of the main reason why SCM has not resorted to a rights issue is because it has been able to tap on the "good relationship" it has with bankers to borrow more during this downturn. SCM's borrowings has increased by 8% over the past 6 months or 10% year on year.
So while we think that banks are exerting pressure on smaller O&G counters like Nam Cheong etc, (Local) banks seem to be "willing" to lend more to SCM to tide it over this cycle of down trough.
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SCM/KEPFELS is backed by temasick leh, 3 BIG sg banks has to support... if really got problem, they will take it pte, just like SMRT.
1) Try NOT to LOSE money!
2) Do NOT SELL in BEAR, BUY-BUY-BUY! invest in managements/companies that does the same!
3) CASH in hand is KING in BEAR!
4) In BULL, SELL-SELL-SELL!
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As weijian says SCM can opt to operate the drill ship on its own instead. This will soften the write down it has to take
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