SembCorp Marine

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#21
206-hectare yard is a pretty large yard. SembCorp strategy is different from Keppel corp, thus competes directly with China and Korea shipbuilders.

Singapore’s largest integrated shipyard launched

SINGAPORE — Sembcorp Marine officially launched the largest integrated shipyard in Singapore at Tuas today (Nov 6), a move that further cements its position in the regional marine and offshore industry.

The 206-hectare Sembmarine Integrated Yard had seen its first phase completed and operational since August this year. Capable of serving a wide range of vessels, including very long range and mega carriers, the phase one facilities include Singapore’s widest drydock for jack-ups and semi-submersible rigs, as well as Asia’s longest and deepest ship repair drydock.

Phase one covers 73.3 hectares, while phase two, which will be operational in the next three to four years, will cover another 34.5 hectares.

“The Sembmarine Integrated Yard is an apt symbol of our growth and expansion — and it is timely that its launch comes during our 50th anniversary,” Sembcorp Marine chairman Goh Geok Ling said.

The new yard will also be the site to consolidate all five facilities that Sembcorp Marine currently operates in Singapore by 2024. Globally, the company is also present in Brazil, The United Kingdom, the United States, India and Indonesia.
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http://www.todayonline.com/business/sing...d-launched
“夏则资皮,冬则资纱,旱则资船,水则资车” - 范蠡
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#22
(06-11-2013, 04:22 PM)CityFarmer Wrote: 206-hectare yard is a pretty large yard. SembCorp strategy is different from Keppel corp, thus competes directly with China and Korea shipbuilders.

Singapore’s largest integrated shipyard launched

SINGAPORE — Sembcorp Marine officially launched the largest integrated shipyard in Singapore at Tuas today (Nov 6), a move that further cements its position in the regional marine and offshore industry.

The 206-hectare Sembmarine Integrated Yard had seen its first phase completed and operational since August this year. Capable of serving a wide range of vessels, including very long range and mega carriers, the phase one facilities include Singapore’s widest drydock for jack-ups and semi-submersible rigs, as well as Asia’s longest and deepest ship repair drydock.

Phase one covers 73.3 hectares, while phase two, which will be operational in the next three to four years, will cover another 34.5 hectares.

“The Sembmarine Integrated Yard is an apt symbol of our growth and expansion — and it is timely that its launch comes during our 50th anniversary,” Sembcorp Marine chairman Goh Geok Ling said.

The new yard will also be the site to consolidate all five facilities that Sembcorp Marine currently operates in Singapore by 2024. Globally, the company is also present in Brazil, The United Kingdom, the United States, India and Indonesia.
...
http://www.todayonline.com/business/sing...d-launched

Despite its strong earnings and recognition, You can see from their annoucement historical operating margin has been depressing from 15-20% to current level of 10-15%. This probably explains its price decline.
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#23
Business in ship repairing and certain segments of O&M have not been good recently. However, what keeps SembMar and Keppel Shipyard profits going is their past orderbooks
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#24
Analyst view on Sembcorp Marine. Between Sembcorp Marine and Keppel O&M, Keppel O&M is better position with its "Near Market, Near Customer" strategy and KFELS jackup rigs, IMO

Sembcorp Marine slumps to 2-month low on weak margins; Singapore index flat

Marine and offshore engineering company Sembcorp Marine dipped to a two-month low on concerns over weak operating margins, while the Singapore benchmark index was flat.

Sembcorp Marine shares fell as much as 3.3% to $4.35, after reporting disappointing operating margin for the third quarter despite a 12% increase in net profit.

Operating profit margins for the quarter dropped 4%age points to 10.1% from a year earlier, while $0.4 billion in orders were added to its total order wins of $3.9 billion for the year to date.

“We are concerned that SMM’s margins will be under further pressure in the coming quarters and years,” said analysts at Religare Capital Markets Ltd in a note.

Religare said stiffened competition from Chinese yards, rising costs in Brazil and an expected hike in rig equipment prices will weigh on the company’s margins.

Religare has a “sell” rating and a target price of $3.75 on Sembcorp shares. However, Sembcorp Marine’s strong balance sheet and order book give the company a chance to gradually shift away from traditional rig building where Chinese yards are aggressively snatching up market shares, Religare said
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http://www.theedgesingapore.com/the-dail...-flat.html
“夏则资皮,冬则资纱,旱则资船,水则资车” - 范蠡
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#25
Any idea why the sudden drop in price?
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#26
mulyc Wrote:Any idea why the sudden drop in price?



Deutsche’s ratings (in order of preference) are:

Keppel: Buy, TP decreased to $12.70 from $13.00
SCI: Hold, TP decreased from $5.40 to $5.20
SMM: Sell, TP decreased to $3.65 from $4.00
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#27
(08-01-2014, 06:04 PM)orangetea Wrote:
mulyc Wrote:Any idea why the sudden drop in price?



Deutsche’s ratings (in order of preference) are:

Keppel: Buy, TP decreased to $12.70 from $13.00
SCI: Hold, TP decreased from $5.40 to $5.20
SMM: Sell, TP decreased to $3.65 from $4.00

Prices have been so weak since late 2012. Haiz.
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#28
Wah, another big selldown, some 1K lots, down to a low of 4.27 today...
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#29
SembCorp Marine is more vulnerable than Keppel Corp, from the competition from Korea, and China shipbuilders. May be one of the reasons triggers the downgrades from analyst? I didn't read any of the reports...

(not vested)

Sembcorp Marine Q4 net profit rises 9.2%

SINGAPORE – Sembcorp Marine, one of the largest offshore drilling rig producers in the world, said its net profit in the fourth quarter rose 9.2 per cent as higher operating profit offset lower contributions from associates and joint ventures.

Sembcorp Marine, which is the world’s second-largest jackup rig producer after crosstown rival Keppel Corporation, posted a fourth-quarter net profit of S$182.4 million. Its full-year net profit rose 3.2 per cent to S$555.7 million.

The company’s order book fell to S$12.3 billion from the all-time high of S$13.5 billion a quarter earlier.

Sembcorp Marine is the second-worst performer so far this year on Singapore’s benchmark Straits Times Index, losing about 8 per cent after Genting Singapore’s 9 per cent drop.

The company has received five analyst downgrades over the last 90 days, the most downgrades any Singaporean company has received during the period. REUTERS
http://www.todayonline.com/business/semb...t-rises-92
“夏则资皮,冬则资纱,旱则资船,水则资车” - 范蠡
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#30
A series of contracts culminating into lelong price for drill ship at 540 each. Not sure what is SM scope of supply. Compared to Keppel which is taking a more conservative approach, it seems like SM is taking on risk?

Go check samsung and dsme, they built of 600+mil price and yet got very little margin in their report earnings. Korean yards are cheapest around. Now Singapore yard is outdoing them?

Salute to SM for its guts and for sure the contract in Brazil drillship is going well otherwise why would Transocean be willing to commit?
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