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SembCorp Marine- The new Frontier.
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Octavia
Supreme |
12-Jul-2021 08:55
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SembMarine expects losses in 1H21 to be in region of losses in FY20 due to provisions on cost increases
Sembcorp Marine (SembMarine) announced, on July 12, that it expects to report losses in the 1HFY2021 ended June, which is likely to be &ldquo in the region of&rdquo the full-year losses incurred in the FY2020 ended December.
This is due to the provisions undertaken by the group for the increased costs to complete the group&rsquo s ongoing projects in the FY2021 and FY2022 that were incurred in the 1HFY2021 The provisions for additional costs include the hiring of additional skilled labour from non-traditional sources to complete its projects with as little delays as possible due to the Covid-19 pandemic. |
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weekaykee
Master |
12-Jul-2021 08:52
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In their profit guidance " Group expects that losses for 1H2021 are likely to be in the region of the full year losses incurred for FY2020" This is worrying. Partially due to doubling of manpower costs from non-traditional soruces. But did so many of the previous batch of workers return home and needed to be replaced? I wonder if KOM will face the same costs.
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TigerPlay
Master |
12-Jul-2021 08:45
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Sorry, i got a different view. The previous one is demerged from Sci, that one will weaken Scm.This one is merged with kOm to make a bigger,stronger and more competitive entity, so the road will be totally different. Last one at 20cts demerged, share went down to 11.3cts lowest, then bounces back to 22cts ultimately. This one issued at 8cts, probably will start trading around 12cts and slowly go up to 20cts or more, that is my take, dyodd.
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naoshingo
Elite |
12-Jul-2021 08:43
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They make the day 2021 and 2022 cost provisioon. If I am not wrong, hence the huge loss..
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ysh2006
Supreme |
12-Jul-2021 08:20
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SMM ann, today will maybe report a loss for coming report! | ||||
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TA_Expert
Supreme |
11-Jul-2021 22:41
Yells: "The World has changed" |
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Corruption and Bribery are common in the oil and gas space. This is not just a Singapore problem but globally. The question is can the new entity (SMM + KOM) make the share price go back to at least $1? The answer is obviously no. Most analysts said that the new entity is worth at most $0.124 or so. For new investors who bought at around this price and subscribe the rights at $0.08, you will probably make money. Not forgetting those who received free SMM shares from SCI and KC will still profit as long as SMM is not zero value. The rest of the shareholders will lost their investments more than 90%. |
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better
Elite |
11-Jul-2021 21:29
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February 23, 2021, by Bojan Lepic
South Korean shipbuilder Samsung Heavy Industries has agreed to pay a settlement in a leniency deal with authorities of Brazil to settle a corruption investigation. According to a Reuters article, federal prosecutors said late on Monday that Samsung Heavy paid $148.56 million (812 million reais). FOR IMMEDIATE RELEASE
Friday, November 22, 2019
Samsung Heavy Industries Company Ltd Agrees to Pay $75 Million in Global Penalties to Resolve Foreign Bribery CaseSamsung Heavy Industries Company Limited (Samsung Heavy Industries), a South Korea-based engineering company that provides shipbuilding, offshore platform construction, and other construction and engineering services, has agreed to pay total penalties of more than $75 million to resolve the government&rsquo s investigation into violations of the Foreign Corrupt Practices Act (FCPA) arising out of a scheme to pay millions of dollars in bribes to officials in Brazil. The final installment by the Technip companies Technip Brasil and Flexibras amounts to R$271.1 million ($55,25 million). " With these amounts, Petrobras exceeds the mark of R$ 6 billion [$1,22 billion] in funds recovered through collaboration, leniency and repatriation agreements. These reimbursements arise from Petrobras' status as a victim in the crimes investigated in Operation Car Wash," Petrobras said. Operation Car Wash has been described as Brazil' s largest corruption scandal, in which government and business officials have been accused of taking bribes from services companies in exchange for hefty Petrobras contracts. Back in 2019, when the leniency agreement was reached, the U.S. Department of Justice said that TechnipFMC, a global provider of oil and gas services, and its subsidiary Technip USA, Inc. (Technip USA), had agreed to pay a combined total criminal fine of more than $296 million to resolve foreign bribery charges with authorities in the United States and Brazil.
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sutiono
Veteran |
11-Jul-2021 20:33
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But korean and china yards won almost all the jobs . No longer competitive , also due to past corruption records . Good reputable companies will shun SM and KC .
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Goldfinger
Supreme |
11-Jul-2021 20:27
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I would venture this. If the price of oil continues to rise above US$70 and US$80, the price of alternative energy sources should also rise in tandem since they are substitutes to a certain extent. So, they would also boost SMM, SCI and Keppel Corp' s other clean energy businesses.....
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Abe2021
Veteran |
11-Jul-2021 16:45
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" Market Weight" means you are free to short but it does not deny anyone to hold or buy. Market will be the judge X-factor will always change history, so won' t want to be too sure if the price must go below or above 8c. The latest report by UOB shows that the market is recovering This has potentially helped the marine offshore sector undergo a nascent recovery, as seen in the number of offshore rigs and competitive utilisation that have continued to recover. Utilisation of semi-submersibles and drillships has risen between 8-24 per cent since the start of the year, while day rates for jack-ups have increased by 15 per cent and mid-water semis have increased by 22 per cent in the same period. |
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shortyboy
Member |
11-Jul-2021 15:20
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History will repeat itself. After $0.20 right issue, price plunge towards $0.11. After $0.08 right issue price will plunge towards $0.04 cts. Especially this round $0.08 right issue flood 100% more share into market. Moron will buy at current level better wait till $0.04 | ||||
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better
Elite |
11-Jul-2021 13:27
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Abe2021
Veteran |
11-Jul-2021 09:12
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Yatsa13, basically refer to UOB report. What spot on are you talking about ! You simply ignore everything good that Temasek is trying to do. Not just ignore but twisted every of their good intent. China and Korean also face the same headwind and merged. Do they have to " demerge and merge" ???? NO, they merged. SembMarine has to do it in 2 steps. First demerge then after 9 months to carry out the merger. They know that time is of the essence so they did the merger and rights exercise for the coming contracts that are pouring in 2HFY2021. UOB report also said &ldquo According to Sembcorp Marine (SembMarine), a number of major offshore production projects will likely head towards Final Investment Decision in 2HFY2021 and thus both Keppel Corporation and SembMarine could benefit,&rdquo says Loh. Letter to the Business Times: Improper to link rights issue to potential merger of Sembcorp Marine, Keppel O& M
The 2021 Rights Issue of SembMarine, and Potential Combination between SembMarine and Keppel are two independent transactions. |
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sutiono ( Date: 10-Jul-2021 22:50) Posted:
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Supreme
Yells: "The World has changed"
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If oil and gas is making billions, why would both SCI and KC cut off their O& G arms?
Obviously, both SMM ans KOM are facing strong headwinds which nobody knows except TH and their top management.
sutiono ( Date: 10-Jul-2021 22:50) Posted:
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etilatrop ( Date: 10-Jul-2021 21:28) Posted:
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1) If business is looking up, would KC amputate KOM?
2) If business is looking up, wouldn' t SMM be getting loans easily instead of bleeding SH dry (again so soon) and cause its stock price to collapse?
3) If business is looking up, and SMM is about to get a major order, wouldn' t they announce a rights exercise in conjuction with that, or price the rights shares higher?
Yes, China and Korean yards are brimming with orders. There is a systemic problem with yards in SG, especially with SMM, that has been causing their gradual collapse and inability to get orders over the years. Strong forces are at play to undermine SMM. Just look at the the brightest market sentiments that we had for the past 6 or 7 years, for drillers, rig owners, foreign yards, etc, but SMM in its neverending pathetic state sticks out like a sore thumb.
SMM has excuses:
1) Covid induced labor crunch. Last we heard, they are working with authorities to solve the problem. How now? God knows? No word since, standard SMM accountability. Imho, SMM has severe over-capacity. Other companies would cut costs and capacity to stay afloat when they cannot get orders. Not like SMM that is spending crazily fast.
2) Supply chain disruptions and higher costs. Other yards not facing issues, just SMM? Is it enough to justify such a high rate of cash burn?
3) The longest excuse: low oil and gas prices. Well, look at the prices now. Look at how other yards snapped up billions of orders in a matter of months, while SMM swat flies, shake leg, and beg for more cash to spend. SPIT.
Yatsa13 ( Date: 10-Jul-2021 19:31) Posted:
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highlight the industry indeed has recovered. Demand for oil is also expected to rebound in 2021, on the back of expectations of an economic recovery. " The US Energy Information Administration (EIA) expects crude oil and liquids demand to experience a v-shaped rebound in 2021 with oil demand rising by 5.4 million barrels per day (mmbpd) followed by another strong year in 2022 with a growing demand of 3.65mmpd."
" According to Sembcorp Marine (SembMarine), a number of major offshore production projects will likely head towards Final Investment Decision in 2HFY2021 and thus both Keppel Corporation and SembMarine could benefit," says Loh. internationally, the market knows with the merger there is only one entity, SembMarine which means " SembMarine could benefit."
SembMarine will benefit from all the goodwills from Keppel.
indirectly he is speak good on all 3 entities, keppel, sci and sembmarine even though he said with the exception of sembmarine.
he maybe saying " market weight" , in fact he is pivoting toward " overweight"
sembmarine is currently in the raw gem that went through many challenges, waiting to transform into precious gem. ceratinly merger is going to be different from de-merger. 😜 imho.
Supreme
Yells: "The World has changed"
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By stripping away the O& G arms, both companies are super profitable especially KC.
Now here comes the trick, should TH cut off these arms by paying their own monies? Of course not. Instead, take from the gullible SMM shareholers.
sutiono ( Date: 10-Jul-2021 12:11) Posted:
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UOB Kay Hian sees Sembcorp, Yangzijiang and Keppel as ' compelling investment cases' in offshore & marine sector
https://www.theedgesingapore.com/capital/brokers-calls/uob-kay-hian-sees-sembcorp-yangzijiang-and-keppel-compelling-investment-cases
UOB Kay Hian analyst Adrian Loh has maintained &ldquo market weight&rdquo on the offshore & marine sector, following his previous sector update in mid-March.Since then, the sector has continued its recovery amid improving industry conditions, albeit at a snail&rsquo s pace.
&ldquo Since their troughs in November 2020, the number of active offshore rigs as well as competitive utilisation have continued their recovery,&rdquo Loh writes in a July 7 report.
&ldquo While utilisation rates for jack-ups have stagnated this year, utilisation for semi-subs and drillships have risen 8-24% year-to-date (y-t-d) while dayrates for jack-ups and mid-water semis have increased by 15% and 22% y-t-d respectively.&rdquo
That said, a few months&rsquo worth of data may not point to anything meaningful at the moment, Loh cautions, although the short-term trend is looking positive.
Activity within the industry is also picking up as demand for production assets could recover after experiencing capital expenditure (capex) delays related to Covid-19 in 2020.
&ldquo According to Sembcorp Marine (SembMarine), a number of major offshore production projects will likely head towards Final Investment Decision in 2HFY2021 and thus both Keppel Corporation and SembMarine could benefit,&rdquo says Loh. Following the recent OPEC+ meeting, where no agreement on increasing oil supplies to the market was reached upon, oil prices could hit US$100 ($134.78) per barrel sooner than expected.
In March, Loh had raised the possibility of reaching US$100 a barrel in the next two years due to the lack of exploration capex in the past five years.
However, with the results from the recent OPEC+ meeting, Loh says any incremental oil supply can happen only after the next meeting in August.
&ldquo A stronger oil price would be well supported in the near term,&rdquo he writes.
On this, small cap upstream stocks such as Rex International and RH Petrogras may be potential beneficiaries from the situation.
Looking ahead, Loh says investors could see a cyclical upturn start in the next six to 12 months, should activity in the oil and gas industry strengthen and lead to a revival in the offshore & marine industry.
This is based on the assumption that the current waves of Covid-19 infections are dealt with &ldquo in a reasonably quick manner&rdquo and that the global vaccine roll out is effective.
&ldquo Already, oil prices have trended upwards towards US$80 per barrel, a level that was unimaginable at the start of 2021. Clearly this has been helped by OPEC+ which to date has retained its tight grip on oil supplies, with an eye on supporting higher prices, and its own fiscal balances,&rdquo he says.
Demand for oil is also expected to rebound in 2021, on the back of expectations of an economic recovery.
&ldquo The US Energy Information Administration (EIA) expects crude oil and liquids demand to experience a v-shaped rebound in 2021 with oil demand rising by 5.4 million barrels per day (mmbpd) followed by another strong year in 2022 with a growing demand of 3.65mmpd.&rdquo
Within the sector, Loh has kept &ldquo buy&rdquo on Sembcorp Industries, Yangzijiang Shipbuilding and Keppel Corporation with target prices of $2.59, $1.90 and $6.37 respectively.
He has maintained &ldquo hold&rdquo on SembMarine with a target price of 12.4 cents.
&ldquo With the exception of SembMarine, we believe that the industrial stocks in our universe present compelling investment cases: a) Sembcorp Industries with its plans to significantly grow its renewables over the next three to five years thus attracting interest from ESG investors, b) Yangzijiang (YZJ) given our belief that it will benefit from continued strong new order flow in 2021 and potentially into 2022, and c) Keppel due to the positive sentiment surrounding the merger of its offshore & marine segment with SembMarine,&rdquo he says.
Shares in Sembcorp, Yangzijiang and Keppel closed $2.13, $1.40 and $5.21 respectively, representing P/Bs of 1.1 times, 0.8 times and 0.9 times, according to UOB Kay Hian&rsquo s estimates. Shares in SembMarine closed 12.2 cents, or 0.4 times P/B.