Seatrium Limited (formerly SembCorp Marine and KOM)

[value seeker]

I thought the 2Q profit after tax rises by 6.9%?

Vested

[CityFarmer]

Hi CityFarmer,

I thought its up by 5% ?

http://af.reuters.com/article/idAFL4N0QA0WX20140804

http://infopub.sgx.com/FileOpen/SCM2Q201...eID=308129

I didn't counter-check with the actual report, and just re-quoted the report from the site.

I did a preliminary check after your post. Yes, I found no clues on the bases of the report from The Edge online site? Wrongly reported?

With a approx 5% rise in NP, Sembcorp Marine still underperformed comparing with Keppel Corp of 17% rise in NP.

(not vested both in Sembcorp and Keppel but monitoring O&M sector)

[Art or Science]

Hi CityFarmer,

I thought its up by 5% ?

http://af.reuters.com/article/idAFL4N0QA0WX20140804

http://infopub.sgx.com/FileOpen/SCM2Q201...eID=308129

I didn't counter-check with the actual report, and just re-quoted the report from the site.

I did a preliminary check after your post. Yes, I found no clues on the bases of the report from The Edge online site? Wrongly reported?

With a approx 5% rise in NP, Sembcorp Marine still underperformed comparing with Keppel Corp of 17% rise in NP.

(not vested both in Sembcorp and Keppel but monitoring O&M sector)

just to point out for VBs info only

Not to incur the wrath of VBs in this thread, but I have the same opinion - that Keppel is better than sembcorp in the offshore and marine business. For instance, Keppel's ability to win orders such as the Floating LNG vessel conversion LNG and five newbuild jackup rigs.. I'm not too impress by their infrastructure business though..

(vested in Sembcorp utilities couple of years ago because of its utilities business..)

[CityFarmer]

Hi CityFarmer,

I thought its up by 5% ?

http://af.reuters.com/article/idAFL4N0QA0WX20140804

http://infopub.sgx.com/FileOpen/SCM2Q201...eID=308129

I didn't counter-check with the actual report, and just re-quoted the report from the site.

I did a preliminary check after your post. Yes, I found no clues on the bases of the report from The Edge online site? Wrongly reported?

With a approx 5% rise in NP, Sembcorp Marine still underperformed comparing with Keppel Corp of 17% rise in NP.

(not vested both in Sembcorp and Keppel but monitoring O&M sector)

just to point out for VBs info only

Not to incur the wrath of VBs in this thread, but I have the same opinion - that Keppel is better than sembcorp in the offshore and marine business. For instance, Keppel's ability to win orders such as the Floating LNG vessel conversion LNG and five newbuild jackup rigs.. I'm not too impress by their infrastructure business though..

(vested in Sembcorp utilities couple of years ago because of its utilities business..)

It is important to point out mistake, for the benefit of VB buddies here. Thanks for the effort.

One important observation on Keppel and SembCorp, specifically on O&M, is Keppel always a leader, while SembCorp Marine a follower. For example, Keppel is taking a global lead in the FLNG conversion technology, while SembCorp Marine just started on the "crowded" drillship business.

Sharing observation with buddies here.

[greengiraffe]

Madness for such long duration bonds...

http://www.businesstimes.com.sg/premium/...s-20140904

PUBLISHED SEPTEMBER 04, 2014
Jurong Shipyard sells longer dated bonds
S$275m tranche has tenure of 7 years; S$325m tranche has 15-year duration
BYSIOW LI SEN
lisen@sph.com.sg @SiowLiSenBT

JURONG Shipyard, a wholly owned unit of Sembcorp Marine, has sold S$600 million bonds, with one tranche having a 15-year tenure, a long duration not seen in recent years for non-bank corporate issuers.
The debt issue by Jurong Shipyard offered two tenures - seven years for S$275 million and 15 years for S$325 million. Both the tranches received orders in excess of S$400 million.
Growing demand for longer-dated bonds meant Jurong could price at the lower end of its initial guidance.
The S$275 million seven-year bonds were priced at 2.95 per cent and the S$325 million 15-year bonds were priced at 3.85 per cent.

[CityFarmer]

I am wondering, ONLY SembMarine stock has been affected by oil price? Why Keppel Corp stock hasn't? I reckon it must be other factor contributed to the fall...

(not vested)

SembMarine shares continue to fall as oil prices weigh

Shares of Sembcorp Marine remain under pressure and are at their lowest level since January 2012.

The stock has fallen about 15% so far this year, underperforming the Straits Times Index. It has also underperformed rival Keppel Corp, which is lower by only 2% year to date.

A key reason for the dismal performance of SembMarine’s shares is oil prices, which have been hurt by softer demand from China and increased production from the US. The stock typically has a close correlation with oil prices.
...
http://www.theedgesingapore.com/the-dail...weigh.html

[greengiraffe]

Sembmarine is a pure concentrated bet that will bear the full brunt of bearish shortist.

KepCorp is a conglomerate that will leave slightly more confusion before hard reality sets in.

On a more realistic mode, the specialised OSV segment will bear the brunt of lower oil prices just like what Jaya experienced during the GFC.

Odd Lots Vested
GG

I am wondering, ONLY SembMarine stock has been affected by oil price? Why Keppel Corp stock hasn't? I reckon it must be other factor contributed to the fall...

(not vested)

SembMarine shares continue to fall as oil prices weigh

Shares of Sembcorp Marine remain under pressure and are at their lowest level since January 2012.

The stock has fallen about 15% so far this year, underperforming the Straits Times Index. It has also underperformed rival Keppel Corp, which is lower by only 2% year to date.

A key reason for the dismal performance of SembMarine’s shares is oil prices, which have been hurt by softer demand from China and increased production from the US. The stock typically has a close correlation with oil prices.
...
http://www.theedgesingapore.com/the-dail...weigh.html

[ValueBeliever]

Just a reminder that lots of rig are coming off contract in the next 2 yrs and also lots more will be delivered. So if oil price remain that low, I guess something got to give in?

I think oil long rally is coming to an end and its going to be very painful to remain in this sector. With Dollar strength more commodities related speculator are all going to be on the sell option - meaning more weakness.

Think of it this way - if Europe is going to freeze without Russian gas, why isnt oil higher, and why with so much chaos in middle east Saudi is selling oil on the cheap?

Never wrong to sell long term position if the market start to wobble in uncertainty, cause better condition might flood market with even more oil depressing the entire sector!

[LLS]

I think the current valuations are pretty cheap for semb marine
PE 13 times
net cash position
strong order book stretching at least the next 3 years
stock price down like 25% over the last 2 years (cheaper the better)

there may be more selling but if buy and hold for long term, it seems like a safe bet

[weijian]

I am wondering, ONLY SembMarine stock has been affected by oil price? Why Keppel Corp stock hasn't? I reckon it must be other factor contributed to the fall...

Keppel Corp is a conglomerate with a substantial chunk of profitability from property/infrastructure sources and that source of diversification does cushion to a certain extent.

Besides been a pure offshore O&G play that is suffering from lower oil prices and stiff competition, i think another 1 of the reason for the price weakness would be the amount of CAPEX it has spent - Tuas Phase 1 + EJA (Brazil) has already spent ~1.5-1.8bil sgd, and more importantly the amount that it will spend in the next 5 years.

In the next 5 years, SCM is looking at (1) 150-200mil sgd to wrap up EJA (Brazil) construction, (2) recently announced 711mil for new steel fabrication plant + Tuas Phase 2, (3) Tuas Phase 3 starting in 2017 (TBD).