SHARES of Sembcorp Marine (Sembmarine) jumped as much as 6.3 per cent amid heavy trading on Monday (Apr 4) morning.

 

The counter reached S$0.102 at 9.29 am, rising 6.3 per cent or S$0.006.

 

It ended the day up 4.2 per cent or S$0.004 at S$0.10, with 185.2 million shares changing hands, making it the most traded counter by volume.

 

Last week, Sembmarine and Keppel Corporation said more time and deliberation were needed to advance the proposed combination of Keppel Offshore & Marine (Keppel O& M) and Sembmarine, although " significant progress" has been made.

 

This came some 9 months after both parties first announced talks on potentially combining the entities. Both need to complete due diligence, reach a mutual agreement on the transaction terms and finalise definitive legal documentation.

 

On Mar 30, Sembmarine' s shares dived after the group gave notice that it recorded 3 consecutive years of pre-tax losses.

 

The group has a 6-month average daily market capitalisation of S$2.6 billion as at Mar 28, which means the group still meets the financial entry criteria to avoid being placed on the Singapore Exchange' s watch list.

 

Norwegian maritime technology and equipment provider Kongsberg Maritime has won will supply a technology package for a new Wind Turbine Installation Vessel that Singapore' s Sembcorp Marine is building for the Danish offshore service provider Maersk Supply Service.

Kongsberg Maritime will supply the complete electrical system and the integrated control system for the WIV. The system will ensure optimal performance irrespective of weather conditions and sea states.

Importantly, Kongsberg said, the solution will also reduce OPEX while minimizing the environmental impact of the vessel&rsquo s offshore operations. KM&rsquo s lifecycle management system will generate long-term savings and boost visibility while the wind turbine installation vessel is in operation.

 

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The new WIV, which will install wind turbines on Equinor and BP-owned Empire Wind project off the east coast of the U.S. is expected to be delivered in 2025. 

It marks the first step in Maersk Supply Service&rsquo s expansion plans as regards the U.S. service sector within offshore wind, which is anticipated to grow to 30GW by 2030.

Shallow water drilling company Borr Drilling has won new contracts and extensions for five of its premium jack-up drilling rigs. 

" These awards increase the company' s backlog by approximately 2,530 days [around 6.9 years], excluding optional periods," Borr Drilling said, without going into details on the value of the contracts.

The premium jack-up drilling rig " Gunnlod" has secured a contract with an undisclosed operator in Southeast Asia. This contract is expected to start in direct continuation of its current contract. The work will cover 11 wells with an anticipated duration of 186 days plus options.

The premium jack-up drilling rig " Mist" had options exercised by PTTEP for a total duration of approximately 3.5 months and it is now expected to remain contracted with PTTEP until Q4 2022.

The premium jack-up drilling rig " Saga" has secured a contract with an undisclosed operator in Southeast Asia. This contract will start in direct continuation of its current contract and the work will cover a 1-well program with an anticipated duration of 45 days, Borr Drilling said.

Additionally, Borr Drilling said it had won long-term contracts in the Middle East with an undisclosed operator for two of its premium jack-up drilling rigs. The contracts have a firm duration of 3 years plus options each and are expected to begin in the second half of 2022.

These awards increase the company' s contracted fleet to 20 rigs out of a total of 23 delivered rigs, Borr Drilling said.

" Borr Drilling remains in constructive discussions with its lenders (SCM, KOM) in relation to the deferral or refinancing of its debt maturing in 2023 and expects such discussions to be successfully concluded on or before June 30th, 2022," the company added.