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Thanks Weijian,
for your thoughts on the matter.
I post the link here for image again
[Image: s10.png]
I stumble on this recent news
http://www.ihsmaritime360.com/article/18...lling-rigs
Sete is still ordering from cosco, wonder what is on their mind?
I agree that delays are inevitable.
Assume they are now co-owned, it means Sembmarine will pay its share of construction cost but will take its share of the charter rate??
life goes in cycles, predictable yet uncontrollable; just like the markets, but markets give you a second chance
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Hi GreenRookie,
No surprises that Sete is talking to COSCO, the article mentioned that a Chinese bank will also arrange financing for them - it most probably comes as a package. Taking SCM's orders only continue to mean that a few hundred more Brazilian workers get employed at EJA but no means to pay for it. If i were Sete, i will cancel existing orders and take up the new package. Wouldn't you?
In May 2013, Equinox Offshore Brazil went bankrupt and defaulted on its ARV3 obligations. SCM took over the operations for ARV3 and its 5year charter contract with Petrobras. It wants to sell it if it finds a buyer with a suitable price, but it hasn't too-date. However for Sete Brazil's 2 drillship case, i do not think SCM will have any ownership like ARV3. Rather SCM needs to find money to pay itself to continue building until Sete Brasil gets new financing to pay it in full. Sete Brasil wants to have the cake (continue building for me please but you gonna pay for it) and eat it (i will pay in full to own it when the upside is here, if it is here). Do note these are only my thoughts as not much details were revealed as to how Keppel/SCM were going to handle this 2 rigs...Some analysts believe it is only 300-350mil of capital, but i would like to think it is more. It is also pretty ironic that Keppel/SCM yards are regarded as 'financially sound' among the others...until that your customers want you to finance for them!
http://www.singaporestockmarketnews.blog...e-rig.html
SCM Mgt iterates that so far, the drillship program is net cash positive as deposits have been collected for all rigs, while construction only started for 3. How long can this excuse last? They are kidding themselves as they have already sunk in 850mil CAPEX to get EJA fully operational by end of this year.
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Its good that you guys are trying to find out details.
With oil prices still slumping and no end in sight to the rot - the best advice - when in doubt, stay clear...
Institutions don't like uncertainties. Moreover the BRIC story is dead in line with commodities slump.
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Merger between Sembcorp Marine and Keppel Corp nearly happened way back in 2001. Before that, SCI wanted to delist Sembcorp Marine but that didnt happen as well.. Well, anything can happen in a downturn, especially one that seems to be 'perfect storm' as coined by some buddies here.
http://www.marinetalk.com/articles-marin...005OT.html
Vested in SCI
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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http://www.channelnewsasia.com/news/sing...43712.html
Mr Heng is a sheltered civil servant... if not wrong he was 2nd time lucky to be an MP... his reading should be taken with a pinch of salt ... there is success not doubt based on track record but good track record is history...
The way forward is highly uncertain especially in the light of new world order...
Certainly showing a way forward for leading GLCs
(29-07-2015, 09:31 PM)greengiraffe Wrote: I re-iterate my view on the local yards here again:
http://www.valuebuddies.com/thread-745-p...#pid117060
Time frame uncertain as the drag will be years...
Somewhere along the time line many of local offshore support industry players will issue certificates to their unfortunate shareholders...
Odd Lots Vested
GG
(29-07-2015, 09:06 PM)CityFarmer Wrote: The poor market condition will sustain for a while...
(not vested)
SembMarine’s 2Q15 earnings down 17% to $109 mil
SINGAPORE (July 29): Sembcorp Marine ( Financial Dashboard), the marine and offshore engineering group, posted a 17% decline in 2Q15 earnings to $109 million from a year ago.
This was below the 2Q consensus earnings estimate of $138.5 million by Bloomberg.
Persistently low oil prices have escalated the ongoing cuts in global exploration and production capital expenditure, says SembMarine in its filing.
“Some customers are also deferring or seeking to defer the delivery of their ordered rigs on a lack of charter contracts,” it adds.
...
http://www.theedgemarkets.com/sg/article...17-109-mil
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life goes in cycles, predictable yet uncontrollable; just like the markets, but markets give you a second chance
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Seems pretty messy with both sides claiming refunds and liability from the other party. The drillship seems to be completed but so far, Vantage had only paid ~10% of the price (which it is trying to reclaim) - pretty precarious terms for the rig builder, DSME.
SCM's 2 drillships with Transocean are on very similar relaxed terms and they have since been delayed for 2 years. Transocean, is 1 of the biggest rig+drillship owner/operators and should survive this mega downturn, although quite unsure in what form. Nonetheless, the odds of cancellation between SCM-Transocean 2 drillships are high in my opinion.
Vantage Breaks Off Newbuild Drillship Contract
https://www.oilandgaspeople.com/news/443...-contract/
DSME to Build $595 Mln Drillship for VANTAGE (when times were much better)
http://worldmaritimenews.com/archives/11...r-vantage/
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Sembcorp Marine's jumbo order win may trigger short squeeze
SINGAPORE (Sept 1): Sembcorp Marine's over US$1 billion order from Maersk Oil North Sea UK may squeeze short positions on the rig-builder's stock, which has fallen 25% year-to-date amid falling global crude oil prices, CMC Markets says.
“While this contract includes projects with long lead times, this is by far one of Sembcorp Marine's bigger contracts announced this year in what has been until now, a dearth of new orders of significance for both Sembcorp Marine and Keppel Corp,” CMC says.
The house says the short interest on Sembcorp Marine shares was still high after the stock fell sharply in the last two weeks to hit a five-year low of $2.1.
Sembcorp Marine is up 2.5% at $2.45, while the Straits Times Index is down 0.5%.
http://www.theedgemarkets.com/sg/article...rt-squeeze
“夏则资皮，冬则资纱，旱则资船，水则资车” - 范蠡
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Got sold down again , future still milky ?
“risk comes from not knowing what you’re doing.”
I don’t look to jump over 7-foot bars: I look around for 1-foot bars that I can step over.
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(28-09-2015, 11:27 AM)cfa Wrote: Got sold down again , future still milky ?
The worst is yet to come... otherwise u think parent company sold the Aussie associate for what...
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