SembCorp Industries

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their utlities div is able to power the 300 mil dividends paid out per year for the miserly 2.9% yield
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Management focus is on generating stable and recurring profit. Its likely that they may want to launch Investment Trust around utility business. Not many Trust on SGX focusing on utility business.

For last few years, div payout ratio remains around 30-40%. In next 3-4 years its heavy investments (in last 2-3 years) in utilities would generate recurring profit. These are two drivers for strong upside in dividend in next few years.
The Straits Times
Apr 25, 2012
Sembcorp opens $34m 'energy from waste' plant

By Yunita Ong

SEMBCORP yesterday opened a $34 million plant in Sakra district on Jurong Island that will turn waste into energy.

The facility will process woodchips from the firm's solid waste management arm to output 20 tonnes of process steam an hour for use by other industries nearby, including multinational agribusiness Tate & Lyle.

The wood - gleaned from industrial, commercial, construction and demolition waste - would otherwise be incinerated.

The steam-producing process also cuts costs. Sembcorp has relied on natural gas from Indonesia to fuel its plants since 2001 but using woodchips instead would be 'significantly' less expensive, although the firm did not disclose the savings.

Mr Ng Meng Poh, its executive vice-president for Singapore and Asean (Utilities), said yesterday: 'This solution provides an alternative economical source of energy for our customers on Jurong Island while leveraging synergies between our solid waste management and energy business.

'It is also a step forward in our strategy to grow our portfolio of renewable energy assets and to offer sustainable and competitive energy-from-waste solutions to our customers on (Jurong Island).'

A range of other green facilities was also announced at yesterday's opening ceremony.

Sembcorp will develop a second boiler at the plant to pump out 40 tonnes per hour of process steam. It will be completed later next year.

The two boilers, which will cost $64 million in total, will reduce carbon dioxide emissions by an estimated 70,000 tonnes a year compared with the typical Singapore steam-generating plant, which uses a mix of natural gas and other fuels.

Sembcorp also intends to supply its Sakra customers with one third of their steam demands using alternative fuel.

It aims to build two energy-from-waste boilers in Sakra to produce 140 tonnes of steam an hour by 2014.

Its solid waste collection arm will provide the plant fuel.

In 2007, Sembcorp started burning woodchips, recycled wood and willows to fuel its $187 million power and steam station in Teeside in Britain.
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any bro here vested in SCI? worried about the plunge in share price? trying to feel the ground and if i should panic if I am holding on the SCI for the time being.....SadSad
I believe the plunge is due to the recently released 3Q results of its listed subsidiary Sembmarine.

(Not Vested)
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In the spirit of value investing, I am buying more of SCIIdea
I believe it will plunge further as SCM exerts its toll on its parent. Probaly back to $4
Shared same sentiment that plunge is due to SCM. At 17c dividend for SCI, the yield is a pretty decent 3.4%.

I noticed that SCM and SCI's share price used to be mirroring each other in absolute terms. I'll however accumulate more SCM as it's a pure play on energy-related industries.

(07-11-2012, 09:17 PM)slownsteady Wrote: In the spirit of value investing, I am buying more of SCIIdea
(28-02-2012, 07:34 AM)Drizzt Wrote: their utlities div is able to power the 300 mil dividends paid out per year for the miserly 2.9% yield

I agree.
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Press Release

May 28, 2013

Singapore, May 28, 2013: Sembcorp Marine's subsidiary Jurong Shipyard has secured a US$596 million contract for a newbuild ultra-high specification jack-up rig with option for an additional unit for use in the United Kingdom sector of the North Sea from Moble Corporation

Representing the most advanced and versatile of its kind in the industry, this jack-up rig will be constructed based on the proven Gusto MSC CJ70 design and in line with an enhanced version of Statoil's "Cat J" specifications. Scheduled for delivery in 1Q 2015, the ultra-high specification jack-up rig will have an air gap of 69 metres and will be capables of operating in water depths of up to 150 metres (492 feet) in harsh environment conditions, with a maximum total drilling depth capacity of 10,000 metres (approximately 33,000 feet).

Featuring design enhancements which will improve the rig's operating capabilities, the enhanced Gusto MSC CJ70 jack-up is designed to optimize HSE focus and is uniquely suited for operations over a very large platform or in a subsea configuration in water depths of up to 150 metres in the Norwegian sector.

Mr William Gu, General Manager of Jurong Shipyard's Offshore Division said "We are very honoured to be chosen by Noble as the partner for this newbuild ultra-high specification jack-up rig. Clinching this prestigious project markets another milestone for us and attests to Jurong Shipyard's ability to build harsher and more sophisticated drilling rigs. This further cements Jurong Shipyard's position as a leading builder of customised rigs and affirms our commitment to provide versatile solutions to meet our customers' diverse specifications. We thank Noble for their trust and confidence in our rig building capabilities."

In addition to this latest rig order, Jurong Shipyard is currently constructing six F&G JU3000N class jack-up rigs worth a total of US$1.3 billion for Noble. The yard had also successfully delivered two units of Bingo 9000 ultra-deepwater semi-submersibles, the Noble Danny Adkins and Noble Jim Day, in 2009 and 2010 respectively.

The contract is not expected to have any material impact on the earnings per share and net tangible assets per share of Sembcorp Marine for the year ending December 2013.

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