Seatrium Limited (formerly SembCorp Marine and KOM)

[specuvestor]

The results are probably non-event but will be interesting to see what SCI review due next week will say... I'm of the view that Keppel might takeover SMM

I think the best for keppel is to spin-off the O&G arm and merge with Sembmar. It will sink even faster if it were to absorb sembmar. 

Will be funny to spin off O&G as it will just become Keppel Land again

[desmondxyz]

The results are probably non-event but will be interesting to see what SCI review due next week will say... I'm of the view that Keppel might takeover SMM

I think the best for keppel is to spin-off the O&G arm and merge with Sembmar. It will sink even faster if it were to absorb sembmar. 

Will be funny to spin off O&G as it will just become Keppel Land again

Ha....it is keppel land now, the whole group is mainly supported by the kepland business....

[weijian]

The results are probably non-event but will be interesting to see what SCI review due next week will say... I'm of the view that Keppel might takeover SMM

hi specuvestor,
Any clues from SCI in 9M17? (assumed you attended the results conf call or something)

We have been waiting since the 1st qtr, but OPMIs (like me) cant find anything from the PR/results stuff..
https://www.valuebuddies.com/thread-723-...#pid139367

[specuvestor]

Hi Weijian... heavy results season so didn't have time to attend conf calls. Hope there will be management roadshow soon but I read their strategic review not completed yet so I guess it will coincide with that.

[weijian]

These semis should operate at ~8-10% gross margins (while the pacific class jackup with repeats would command higher). With initial contract price of 568mil USD, gross costs would be ~0.92*568 ~522mil usd and so would expect ~46mil (60mil sgd) the write offs. Sembmarine's share is 77% and so its 0.77*60 = 46mil sgd.

24mil sgd seems to be on the low side and maybe there were some provisions made earlier? Nonetheless, the discount to original contract price is ~12% and looks like a better deal than the ~30-35% discount on the 9jack ups sold to Borr Drilling. Now, only the drillships from Sete Brasil remains.

SEMBCORP MARINE SIGNS AGREEMENT TO SELL WEST RIGEL

Singapore, December 26, 2017: Sembcorp Marine Ltd (“the Company”) is pleased to announce that its wholly-owned subsidiary Jurong Shipyard Pte Ltd (“JSPL”) has signed an agreement for the sale of the semi-submersible rig West Rigel (“Rig”) to a buyer at a price of US$500 million (“Sale”).

Under the terms of the agreement, the Sale is subject to conditions precedent being met by both parties before the delivery of the Rig and the payment of the price. Once the conditions precedent are fulfilled, the buyer will take delivery of the Rig

http://infopub.sgx.com/FileOpen/Sembcorp...eID=483203

[weijian]

I reckon more cobwebs to appear soon?

Man linked to drillship contracts charged in Brazil

Sembcorp Marine confirmed yesterday that the Brazilian authorities have charged an individual over alleged illegal payments linked to drillship contracts won by the company's units.

President and chief executive Wong Weng Sun told a results briefing that Guilherme Esteves de Jesus has been charged with various offences connected to these contracts.

Mr Wong declined to comment when asked about the nature of the relationship between de Jesus and SembMarine and its subsidiaries.

http://www.straitstimes.com/business/man...-in-brazil

[cyclone]

Financial Results for Second Quarter and Half Year 2018

Highlights for the Six Months to June 30, 2018 :
1. Turnover totalled $2.81 billion compared with 1H 2017 at $1.39 billion
2. Turnover for Rigs & Floaters was $2.41 billion in 1H 2018, compared with $643 million in 1H 2017
3. Group EBITDA of $62 million
4. The Group posted 1H 2018 operating loss of $33 million
5. Net loss of $50 million, including $27 million loss recognised from sale of West Rigel
6. Secured $730 million in new orders in 1H 2018
7. Group net orderbook stands at $7.27 billion
8. Net debt remained relatively stable at $2.99 billion, with net debt to equity at 1.26 times as at 30 June 2018 compared with 1.13 times as at end FY2017
9. No interim dividend declared for 1H 2018. (1H 2017: 1 cent/share)
10. Offshore rig order recovery will take some time as the market remains oversupplied, particularly for jack-up rigs.

More details in :
1. http://infopub.sgx.com/FileOpen/SCM2Q201...eID=517039
2. http://infopub.sgx.com/FileOpen/SCM2Q201...eID=517041
3. http://infopub.sgx.com/FileOpen/SCM2Q201...eID=517040
4. http://infopub.sgx.com/FileOpen/SCM2Q201...eID=517042

Sembcorp Marine today closed at S$1.96.

[weijian]

The results are probably non-event but will be interesting to see what SCI review due next week will say... I'm of the view that Keppel might takeover SMM

I think the best for keppel is to spin-off the O&G arm and merge with Sembmar. It will sink even faster if it were to absorb sembmar. 

Will be funny to spin off O&G as it will just become Keppel Land again

Ha....it is keppel land now, the whole group is mainly supported by the kepland business....

So the 2 big boys from Korea (DSME and Hyundai Heavy Industries) have made the 1st move by merging. It is probably only a matter of time for KCI and SCM to do something together.

SGX shipbuilders could gain from merger of world's 2 largest yards

https://www.theedgesingapore.com/sgx-shi...gest-yards

[cyclone]

Sembcorp Marine reaches settlement with Sete Brasil over drillship contracts

Uma Devi
7/10/2019, 5:14pm

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.

In a bourse filing on Monday afternoon, SembMarine announced that it has now reached full and final settlement of the claims under the contracts, subject to certain preceding conditions being fulfilled.

Upon the fulfilment of the conditions precedent, all seven contracts will be terminated and the parties will mutually release each other from all claims in relation to the contracts.

Following the settlement, the parties will also terminate the arbitration.

For five out of seven of the drillships, SembMarine will retain all the works performed. The remaining two drillships, which have the most advanced construction progress, will be apportioned between SembMarine and Sete Brasil in proportion to payments that have already been made by Sete Brasil.

Sete Brasil was noted to have identified a purchaser for the two drillships, and the purchaser is expected to negotiate with Sembcorp to enter into new contracts to complete the drillships.

More details in https://www.theedgesingapore.com/news/co...-contracts

[weijian]

It was some time back, when SCM was reporting record orders (and profits), giving special dividends and opening a new overseas greenfield yard. Oil cycles are deep and long - and what best than an experience as a SCM shareholder to make an indelible mark to internalize this lesson.

Notice of 3 consecutive years' of losses

https://links.sgx.com/1.0.0/corporate-an...c0485bd7d4