Sembcorp Marine warns of continued losses in first half of 2021
SINGAPORE (THE BUSINESS TIMES) - Sembcorp Marine (Sembmarine) estimates losses for the six months ended June 30 will likely be in the region of the full-year losses incurred for 2020, according to a profit guidance on Monday (July 12). This comes as the offshore and marine player expects incurring additional costs arising from delays in project execution as a result of the pandemic. These additional costs are due to work rescheduling, extra sub-contract work, additional material usage and other staff turnover-related costs. Thus, provisions will be made for the group's first-half results for the costs to be incurred to complete the projects over the next six to 18 months. "These provisions will have a material adverse impact on the group's H1 2021 results," Sembmarine added. Its results for the period are scheduled for release on July 29. Sembmarine reported a $583 million net loss for 2020, including $162 million in pre-tax asset impairments and provisions for the fourth quarter of last year. Sembmarine on June 24 proposed an additional $1.5 billion rights issue to shore up its financial position and accelerate its pivot towards clean energy. It also said it had inked a memorandum...
Keppel, Sembcorp Marine request trading halts
SINGAPORE - Keppel Corp and rig builder Sembcorp Marine (Sembmarine) on Thursday morning (June 24) requested in separate filings to the Singapore Exchange for a halt in the trading of their shares pending announcements. Keppel announced in January it was exiting the rig business as its offshore and marine unit pivots to clean energy, following a strategic review. Keppel Offshore & Marine would stop building offshore oil-drilling platforms, after the oil price crash saw it post record losses of $1.19 billion in 2020. Keppel O&M would be separated into three discrete parts, with two of the entities - Rig Co and Dev Co - holding the completed and uncompleted rigs respectively. Keppel said then it was also exploring inorganic options for the O&M business. Sembmarine, meanwhile, was recently fully de-merged from its parent Sembcorp Industries. Temasek Holdings, which is the biggest shareholder in Keppel and Sembmarine, dropped its plan last year to take a controlling stake in Keppel, following the company's poor financial results. Temasek's role in making a partial offer for Keppel and moving to directly own a stake in Sembmarine had been viewed by many analysts as critical for a consol...
SembMarine expects losses to continue in Q4
Sembcorp Marine (SembMarine) continued to incur losses for its fiscal third quarter ending Sept 30, with low overall business volume and execution delays, it said yesterday in a business update. SembMarine "expects losses to continue into the fourth quarter", the group added in the exchange filing. It did not provide details on the level of losses incurred in the third quarter or expected for the fourth quarter. In July, SembMarine had reported a net loss of $192.1 million for the first half of this year. In its business update, SembMarine said its Singapore yards began to resume production activities in early July, following the relaxation of Covid-19 measures. Its operating yard workforce, including sub-contractors, has since increased to almost full workforce levels. It added: "With oil prices recovering since the March collapse, there have been active reviews of deferred projects by the oil companies. "New orders visibility has improved as a result, and the group is increasingly active in bidding for new projects and discussing resumption of delayed projects." The group is actively tendering for more than 10 projects, especially in the greener energy market segments such as ren...