Adrian Loh  reiterated his buy call for Sembmarine with 11 cents target price.

• INFRASTRUCTURE

September 1, 2021, by  Sanja Pekic

Greek owner and operator of LNG carriers GasLog has completed its first conversion project from an LNG carrier to a floating storage unit (FSU).
Courtesy of GasLog

The Piraeus-based shipper announced the completion of the  GasLog Singapore  conversion project via social media.

To clarify, the converted vessel is a 155,000 cubic metres LNG carrier from 2010.

Described as high standard and technically challenging, the FSU conversion was completed with Singapore-based Sembcorp Marine Repairs.
GasLog Singapore Courtesy of GasLog

The delivery of  GasLog Singapore  took place on 7 July 2021.

Also, GasLog had signed a ten-year time charter for the FSU with Sinolam LNG Terminal.

WE refer to the article published in The Business Times on Oct 4, 2021, titled " Sembmarine revised statement of directors' intent to subscribe to rights issue after EGM" .

 

Your writer did not disclose fully the company' s response to his question. We have set out the company' s response to your writer below so that your readers are fully informed.

 

In the company' s circular of Aug 4, 2021, the statement on directors' intentions followed the language in the corporate governance advisory committee statement on director disclosures in rights issues (issued in September 2020) which recommends that " for good corporate governance, companies should disclose whether the directors intend to subscribe to their rights entitlement" .

 

When considering the statement in the subsequent offer information statement on Aug 26, 2021, the directors deliberated further and decided to add the words " in full or in part" for a more precise description of their intentions and for greater clarity. The difference in wording was not due to any change in the intention of the directors.

 

We therefore do not believe that shareholders were misled in any way.

 

Furthermore, the company respects that the investment decisions taken by the directors as shareholders are personal and would depend on their financial commitments and personal holdings, which varied significantly. This is shown in the table provided by the company and published with the article.

 

The company is encouraged that all the directors of the company have demonstrated their support by subscribing for the rights shares, in full or in part.