Don’t count on battered Sembcorp Marine being privatised: analysts

Despite booking a whopping loss provision of S$609m.

The prolonged distress in the marine business has left Sembcorp’s marine arm gasping for air, but if analysts are to be believed, there is no reason to believe it would be privatised soon.

According to an analyst report from UOB Kay Hian, Sembcorp’s management said whatever decision it makes has to be accretive to shareholders.

Additionally, UOB Kay Hian said Sembcorp said it already has a 61% stake in Sembcorp Marine, and should reserve its money to grow other businesses that give a higher yield.

“This is in view of an expected prolonged downturn in the marine business,” UOB Kay Hian said.

“SMM had earlier announced a 4Q15 net loss of S$537m due to a loss provision of S$609m for Sete Brasil drillship contracts and other rig contracts, as well as a S$150m loss from associate COSCO Shipyard Group (CSG). The provision was mostly for supply-chain costs, as well as doubtful debts pertaining to some of its riskier rig contracts,” UOB Kay Hian added.

Also Read

Shell pipeline leaks oil into Singapore’s Bukom Island

Changi Airport Group unveils three faster vessels for sea rescues

Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

I want to download the media kit