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SembCorp Marine- The new Frontier. Post Reply Rate topic
TA_Expert Supreme	09-Jul-2021 22:22        TA_Expert About Contact  Quote this Post!   Yells: "The World has changed"
x 0   x 0  Alert Admin	If you own nothing, better buy KC shares and not SMM. If you are existing SMM shareholder, buy KC shares to hedge the sell off in SMM. If you are both existing KC and SMM shareholder, buy more KC shares instead. If you are existing KC shareholder, buy more KC shares as SMM will benefit KC.
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sutiono Veteran	09-Jul-2021 22:20        sutiono About Contact  Quote this Post!
x 0   x 0  Alert Admin	Why Keppel wants  its name to delink to O & M , because of past corruption scandal . Can SM shake away its corruption image in the O & M Industry ?
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sutiono Veteran	09-Jul-2021 21:25        sutiono About Contact  Quote this Post!
x 0   x 0  Alert Admin	They couldn' tcareless  becasue they are just employees , nobody want to rock the boat ! etilatrop      ( Date: 09-Jul-2021 17:42) Posted: The squeaky clean image is deemed more important that actual competitiveness. This is the frustrating thing about Singapore. It is hard to compete with foreign companies when they already know your tender price and have already taken incentives to aceept other bids. SMM' s bids should merely for reference and to keep up the appearance of a tender.  At the time, the oil price collapsed, so petrobras should have considered the rigs too expensive and they had liquidity problems, so it was a convenient excuse to refuse payment and collection of the rigs, especially when they could use Sete Brasil as a buffer. Other countries are indeed making the playing field uneven. Commissions and cut backs are common (under the table) and so are subsidies (on the table). There are ways around, besides the use of consultants,  - China and Jap has been apt at providing economic aid/loans in return for the award of large contracts to their domestic companies, especially for infrastructure. Among the oil industry, this is also observable in some African states' cases that owe much money to drillers. - Some companies has also resorted to hiring domestic workers and purchasing materials (e.g. metals and oil) from domestic companies like SMM' s EJA should also have in Brazil, then there is a mutally beneficial relationship. - Having joint ventures, in which SMM has contractual deniability or SMM can be a sub-contractor, then the main contractor or the partner may be less clean without SMM culpability.  There are always ways but the problem is TH and SMM seems to be in  bochup mode. When it is treated like a dumping ground, it becomes just that. It is a joke. jackass      ( Date: 09-Jul-2021 15:46) Posted: i have some friends working at sembcorp marine - last i heard it' s very quiet there with barely any commercial projects, business volume is very low The reason behind the decline of SMM, KOM, and other marine companies such as ST Engineering Marine is very simple,  Singapore was caught for using bribery to win many, many overseas contracts some years back Nowadays due to the strict punishment involved, no local program manager/sales dare to engage in the tactics of paying bribes to win business (why would someone endanger his own rice bowl when the work done is not being appreciated ?) However, the practice of paying bribes for " recommendations" is still very prevalent and common, this is why many overseas contracts and deals are still being secured by China, Korea competitors etc .. Singapore marine sector decided to be clean by avoiding the paying of bribes, but that does not mean our competitors need to follow and do the same  When it comes to the marine sector and oil & gas business, it is as " dirty" as it gets with undertable money going round and round ...
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sutiono Veteran	09-Jul-2021 21:22        sutiono About Contact  Quote this Post!
x 0   x 0  Alert Admin	Very true and spot on ! jackass      ( Date: 09-Jul-2021 15:46) Posted: i have some friends working at sembcorp marine - last i heard it' s very quiet there with barely any commercial projects, business volume is very low The reason behind the decline of SMM, KOM, and other marine companies such as ST Engineering Marine is very simple,  Singapore was caught for using bribery to win many, many overseas contracts some years back Nowadays due to the strict punishment involved, no local program manager/sales dare to engage in the tactics of paying bribes to win business (why would someone endanger his own rice bowl when the work done is not being appreciated ?) However, the practice of paying bribes for " recommendations" is still very prevalent and common, this is why many overseas contracts and deals are still being secured by China, Korea competitors etc .. Singapore marine sector decided to be clean by avoiding the paying of bribes, but that does not mean our competitors need to follow and do the same  When it comes to the marine sector and oil & gas business, it is as " dirty" as it gets with undertable money going round and round ...
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etilatrop Member	09-Jul-2021 17:42        etilatrop About Contact  Quote this Post!
x 0   x 0  Alert Admin	The squeaky clean image is deemed more important that actual competitiveness. This is the frustrating thing about Singapore. It is hard to compete with foreign companies when they already know your tender price and have already taken incentives to aceept other bids. SMM' s bids should merely for reference and to keep up the appearance of a tender.  At the time, the oil price collapsed, so petrobras should have considered the rigs too expensive and they had liquidity problems, so it was a convenient excuse to refuse payment and collection of the rigs, especially when they could use Sete Brasil as a buffer. Other countries are indeed making the playing field uneven. Commissions and cut backs are common (under the table) and so are subsidies (on the table). There are ways around, besides the use of consultants,  - China and Jap has been apt at providing economic aid/loans in return for the award of large contracts to their domestic companies, especially for infrastructure. Among the oil industry, this is also observable in some African states' cases that owe much money to drillers. - Some companies has also resorted to hiring domestic workers and purchasing materials (e.g. metals and oil) from domestic companies like SMM' s EJA should also have in Brazil, then there is a mutally beneficial relationship. - Having joint ventures, in which SMM has contractual deniability or SMM can be a sub-contractor, then the main contractor or the partner may be less clean without SMM culpability.  There are always ways but the problem is TH and SMM seems to be in  bochup mode. When it is treated like a dumping ground, it becomes just that. It is a joke. jackass      ( Date: 09-Jul-2021 15:46) Posted: i have some friends working at sembcorp marine - last i heard it' s very quiet there with barely any commercial projects, business volume is very low The reason behind the decline of SMM, KOM, and other marine companies such as ST Engineering Marine is very simple,  Singapore was caught for using bribery to win many, many overseas contracts some years back Nowadays due to the strict punishment involved, no local program manager/sales dare to engage in the tactics of paying bribes to win business (why would someone endanger his own rice bowl when the work done is not being appreciated ?) However, the practice of paying bribes for " recommendations" is still very prevalent and common, this is why many overseas contracts and deals are still being secured by China, Korea competitors etc .. Singapore marine sector decided to be clean by avoiding the paying of bribes, but that does not mean our competitors need to follow and do the same  When it comes to the marine sector and oil & gas business, it is as " dirty" as it gets with undertable money going round and round ...
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jackass Member	09-Jul-2021 15:46        jackass About Contact  Quote this Post!
x 0   x 0  Alert Admin	i have some friends working at sembcorp marine - last i heard it' s very quiet there with barely any commercial projects, business volume is very low The reason behind the decline of SMM, KOM, and other marine companies such as ST Engineering Marine is very simple,  Singapore was caught for using bribery to win many, many overseas contracts some years back Nowadays due to the strict punishment involved, no local program manager/sales dare to engage in the tactics of paying bribes to win business (why would someone endanger his own rice bowl when the work done is not being appreciated ?) However, the practice of paying bribes for " recommendations" is still very prevalent and common, this is why many overseas contracts and deals are still being secured by China, Korea competitors etc .. Singapore marine sector decided to be clean by avoiding the paying of bribes, but that does not mean our competitors need to follow and do the same  When it comes to the marine sector and oil & gas business, it is as " dirty" as it gets with undertable money going round and round ...
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etilatrop Member	09-Jul-2021 15:16        etilatrop About Contact  Quote this Post!
x 0   x 0  Alert Admin	Indeed, once the deal goes through and KOM loss making unit is stuffed down SMM' s throat and KC get $500 million in return, KC will most likely rise like SMI. Same playbook, same tactics, like a few months ago. Meanwhile, after milking the blood out of SMM SH this 2nd round, the cash will more likely be gone by year end, instead of end 2022. $500 million is a third of the $1.5 million to be raised already. Unlikely to have enough working capital left. $2 billion raised less than a year ago was not enough, just do the math. Supposedly, the $1.5 billion to be raised is not for the $500 million to be paid to KC. Right..., so the $500 million will appear by magic? Even before the merger deal is sealed, the KC CEO already seems sure it would go through, and expects the sum of $500 million already. Need to discuss for what? Meanwhile SMM management focus on rights issue, focus on merger, can also focus on getting more orders? I doubt it. Most likely focusing on keeping jobs after merger or finding other jobs to jump to. I would too if I am in their position. Through these few years, has SMM shown pride, fighting to survival, defense of their stock price, etc? A year ago, there was a shift in management: https://www.sembmarine.com/stock-exchange-announcements/change-of-role-from-chief-financial-officer-to-chief-risk-officer 1) Why the sudden need the change CFO? Since the change, SMM has now issued two rights exercises already. 2) " Following the change, Mr Tan (New Chief Risk Officer) will in his new role report to Mr Wong Weng Sun, the President and CEO of SCM."   What risks has been even overseen and what has this CEO even accomplished with this CRO reporting directly to him?? The worrying signs from the current rights issue and merger ' discussions' are simply too much.
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TA_Expert Supreme	09-Jul-2021 14:43        TA_Expert About Contact  Quote this Post!   Yells: "The World has changed"
x 0   x 0  Alert Admin	Yes, if you owned none of them, it is best to buy KC instead of SMM. KC will rally once the deal is sealed. Just use SCI as a proxy. helloisme      ( Date: 09-Jul-2021 14:17) Posted: I will prefer to invest in Keppel than Sembcorp Marine
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TA_Expert Supreme	09-Jul-2021 14:41        TA_Expert About Contact  Quote this Post!   Yells: "The World has changed"
x 0   x 0  Alert Admin	Yes, because TH give out freebies to both SCI and KC, that' s why institutions are ok even it is a lousy deal for SMM. If there are no freebies, do you think that these big sharks/whales will agree to such deals? You are lucky as them because u owned KC too. Yatsa13      ( Date: 09-Jul-2021 13:57) Posted: no wonder all the buying. big financial institutions are collecting.  if go past 0.125 maybe i will consider to collect. i also hold kc go forth smm TA_Expert      ( Date: 09-Jul-2021 13:43) Posted: Actually only the small retail investors suffered. The big timers are institutions which have portfolios in both SCI and Keppel Corp at the same time. Yes, they suffered in SMM but they gained in SCI and Keppel Corp, so the nett effect is still positive. That' s why big timers will always vote yes. I can tell you that they will vote yes for this upcoming deal too. WIthout giving carrots in the previous and upcoming deals, there will no incentive for them to vote yes. The strategy is to own SCI in rthe first deal to hedge the losses in SMM. Now is to own Keppel Corp to hedge the losses in SMM. Investors who do not own SCI or Keppel Corp shares will suffer the most
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helloisme Veteran	09-Jul-2021 14:17        helloisme About Contact  Quote this Post!
x 0   x 0  Alert Admin	I will prefer to invest in Keppel than Sembcorp Marine
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Yatsa13 Veteran	09-Jul-2021 13:57        Yatsa13 About Contact  Quote this Post!
x 0   x 0  Alert Admin	no wonder all the buying. big financial institutions are collecting.  if go past 0.125 maybe i will consider to collect. i also hold kc go forth smm TA_Expert      ( Date: 09-Jul-2021 13:43) Posted: Actually only the small retail investors suffered. The big timers are institutions which have portfolios in both SCI and Keppel Corp at the same time. Yes, they suffered in SMM but they gained in SCI and Keppel Corp, so the nett effect is still positive. That' s why big timers will always vote yes. I can tell you that they will vote yes for this upcoming deal too. WIthout giving carrots in the previous and upcoming deals, there will no incentive for them to vote yes. The strategy is to own SCI in rthe first deal to hedge the losses in SMM. Now is to own Keppel Corp to hedge the losses in SMM. Investors who do not own SCI or Keppel Corp shares will suffer the most. sutiono      ( Date: 09-Jul-2021 10:10) Posted: Mgm just make investors lok more like suuuckers , fed SCI previously  and now Keppel .
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Abe2021 Veteran	09-Jul-2021 13:49        Abe2021 About Contact  Quote this Post!
x 0   x 0  Alert Admin	Get ready. Now warming up a little, financial institutions ok and retail investors are not . When more news are released, retail also ok. Then the rights also ok. Imagine just a few cents up and you fly over the moon Bonjour 🥸 Abe2021      ( Date: 09-Jul-2021 11:03) Posted: Well, if you think the merger is in the right direction, maybe it is time to collect and subscribe to the rights. When the x-factor is being released, you may say sayang. Don' t be clouded by all the pasar talk. Look at the big pic 😎 Rmb the rights will proceed as planned.  Today you might see a change. I like the cat cha cha. Get ready to dance  Bonjour 🥸 kvyang      ( Date: 09-Jul-2021 10:25) Posted:
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TA_Expert Supreme	09-Jul-2021 13:43        TA_Expert About Contact  Quote this Post!   Yells: "The World has changed"
x 0   x 0  Alert Admin	Actually only the small retail investors suffered. The big timers are institutions which have portfolios in both SCI and Keppel Corp at the same time. Yes, they suffered in SMM but they gained in SCI and Keppel Corp, so the nett effect is still positive. That' s why big timers will always vote yes. I can tell you that they will vote yes for this upcoming deal too. WIthout giving carrots in the previous and upcoming deals, there will no incentive for them to vote yes. The strategy is to own SCI in rthe first deal to hedge the losses in SMM. Now is to own Keppel Corp to hedge the losses in SMM. Investors who do not own SCI or Keppel Corp shares will suffer the most. sutiono      ( Date: 09-Jul-2021 10:10) Posted: Mgm just make investors lok more like suuuckers , fed SCI previously  and now Keppel .
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Isolator Supreme	09-Jul-2021 13:14        Isolator About Contact  Quote this Post!   Mood:
x 0   x 0  Alert Admin	I can say this merger is super! Long to enjoy...
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camelhump Senior	09-Jul-2021 13:05        camelhump About Contact  Quote this Post!
x 0   x 0  Alert Admin	Reason for the rights is simple, to keep company going. Wait till you see 2nd qyqtr result soon then you will know why like one analyst mentioned... Abe2021      ( Date: 09-Jul-2021 11:08) Posted: Agree with me the best talk is action and some news release. Au revoir 🥸
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sky123123 Member	09-Jul-2021 12:56        sky123123 About Contact  Quote this Post!
x 0   x 0  Alert Admin	Must thanks the editor for helping the minority investors on the questions.  i was a bit puzzle when both my spouse' s and my shares was on loan by CDP on June 16, then it follow by the annoucement on June 24. Is this insider trading? Abe2021      ( Date: 09-Jul-2021 08:07) Posted: The conclusion of the article is important and sum up the thought of the writer. I am sure we should be hearing more from the management Sembmarine should also provide a consistent narrative of its underlying competitive advantages, whether it has to do with its technical prowess in certain fields, its intellectual property, or even shifting geopolitical realities.  Shareholders of Sembmarine already know they are invested in a company that faces a tough road ahead. But they want to believe Sembmarine will eventually emerge a winner in the low-carbon global economy of the future.  Sembmarine' s board should offer them a vision of that future, and a good understanding of how the company plans to get there. Abe2021      ( Date: 08-Jul-2021 09:25) Posted: THE board of Sembcorp Marine should provide a more thorough explanation for why its recent proposals - which were immediately followed by a slump in its already depressed share price - are in the interest of minority investors. On June 24, Sembmarine announced plans to raise S$1.5 billion through a three-for-two rights issue at a deeply discounted price of S$0.08 per share. The company said Temasek Holdings would subscribe for its 42.6 per cent entitlement and excess rights such that its total subscription would be up to 67 per cent of the rights issue. DBS is underwriting the remaining 33 per cent of the rights issue. Sembmarine simultaneously announced that it would enter into negotiations to combine itself with the offshore and marine (O& M) arm of Keppel Corp. Meanwhile, Keppel said it is working with a unit of Temasek to sell Keppel O& M' s legacy rigs and associated receivables to a separate entity that will be majority owned by external investors. Keppel said that the proposed combination of its O& M arm with Sembmarine and the proposed sale of its legacy rigs are inter-conditional and will be pursued concurrently. Most market watchers will probably find it hard not to view these proposals as a strategic move by Temasek to consolidate its O& M assets. Sembmarine and Keppel both count Temasek as their single largest shareholder. Temasek has also directly involved itself in the transactions. And, perhaps most tellingly, the proposals were all announced on the same day. Yet, many minority shareholders of Sembmarine may well be wondering if they have received the short end of the stick in this corporate exercise. Since the proposals were announced, Sembmarine' s shares have slumped 35 per cent. Keppel' s shares climbed as much as 9.6 per cent before pulling back. This would not be the first time that Sembmarine has been involved in the unlocking of value at another company. Last year, Sembmarine tapped its shareholders for S$2.1 billion, through a five-for-one rights issue at what was then a deeply discounted price of S$0.20 per share. The bulk of the proceeds was used to repay a S$1.5 billion subordinated loan from its then-parent company Sembcorp Industries, in which Temasek holds a 49.5 per cent stake. Sembmarine was then demerged from Sembcorp, through a distribution in-specie of Sembcorp' s controlling stake in the recapitalised Sembmarine. Shares in Sembmarine went into a tailspin immediately after the rights issue and demerger were announced. Shares in Sembcorp have climbed more than 40 per cent. This column is not suggesting that Sembmarine' s board has acted improperly, of course. There is not enough information to make that judgement. But the board does have a duty to act in the best interests of all its shareholders. In the spirit of clearing the air, here are three broad questions the company should address: Question 1: Why is another deeply discounted  rights issue in the best interest of Sembmarine' s minority shareholders? Sembmarine has said that the re-introduction of Covid-19 measures in 2021, including tighter border controls, has exacerbated the shortage of skilled manpower and delayed the scheduled completion of projects. In particular, the company said it reached an agreement with Transocean in June to reschedule the delivery of two drillship construction contracts. This will result in the collection of some S$610 million being deferred from FY2021 and FY2022 to FY2023 and beyond. Sembmarine said this has impacted its near-term working capital position, and alluded to " tightening funding support" from its lenders. Yet, Sembmarine applauded the " collaborative spirit" of all parties involved to ensure the Transocean projects continue in spite of the challenges. The company also said it has not encountered any project cancellations so far. In short, Sembmarine' s customers are not in trouble, and the revenue and cash flows it is expecting have not been lost but delayed. Against this backdrop, is a deeply discounted rights issue underwritten by Temasek and DBS really the best way forward? Did Sembmarine, for instance, explore the possibility of working with Temasek to fund its receivables from Transocean? Temasek is, after all, helping Keppel unload its legacy rigs and associated receivables. Question 2: On what terms will Sembmarine and Keppel O& M be combined? Sembmarine and Keppel have said the combined entity will be listed, and Sembmarine' s shareholders will hold shares in the combined entity while Keppel will receive shares in the combined entity and a cash payment of up to S$500 million. Keppel has also said it plans to distribute any shares it receives in the combined entity to its shareholders. In addition, the group' s chief executive Loh Chin Hua said during a media and analyst briefing that the group plans to value Keppel O& M on a discounted cash flow basis. Sembmarine should provide its shareholders with similar clarity on how its businesses will be valued in the combination exercise. It should also provide some insight on how the S$500 million cash payment promised to Keppel might impact the combined entity' s capital raising needs once it is formed. Question 3: What is the long-term plan  for Sembmarine? This is arguably the most important question of all. Sembmarine' s board needs to demonstrate some leadership and convince the market that it is an active player in its own destiny, and not a passive vehicle for struggling Temasek-linked O& M assets. It should make it clear that it is working towards delivering long-term returns that will surpass the immediate gains unlocked at Sembcorp and Keppel. For starters, Sembmarine should sketch out its strategy for acquiring O& M assets as the industry consolidates. It should also outline the terms at which deals are likely to get done, and explain how it will ultimately extract value from any O& M assets it takes on. Sembmarine should also provide a consistent narrative of its underlying competitive advantages, whether it has to do with its technical prowess in certain fields, its intellectual property, or even shifting geopolitical realities. Shareholders of Sembmarine already know they are invested in a company that faces a tough road ahead. But they want to believe Sembmarine will eventually emerge a winner in the low-carbon global economy of the future. Sembmarine' s board should offer them a vision of that future, and a good understanding of how the company plans to get there.
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etilatrop Member	09-Jul-2021 11:53        etilatrop About Contact  Quote this Post!
x 0   x 0  Alert Admin	" most SH without financial difficulty would be subscribing to it logically" ? Why would SH subscribe when: (i) The cash raised would (again) by splurged on payment debts to banks and whatever entities like to SCI last time, or splurged on miltuple senseless acquistions and impairments/reinstatements, etc, without proper austerity and cost-cutting, leaving little to no cash for working capital or recovery? This is supported by SMM past practices. (ii) The price would very likely drop below 8c after the rights issue. This is supported by history. If there is one thing you can count on is that SMM price only gets lower. No matter, rights issue, win order, merger possibility, oil price higher or lower, COVID or recovery from it, the SMM vessel only sinks deeper.  (iii) SMM is most likely going to have ANOTHER rights issue in a few months after they have AGAIN burnt through the cash. Then SH would face further dilution, or can they keep selling their kidneys to support this company that spends and spends, without replenishing order books properly? Talk is cheap, and drawing illustrious futures for green energy or oil recoveries, blah blah is useless, when you CONTINUOUSLY FAIL to get orders. Rights issues for billions and billions to get jobs installing a few solar panels here in Singapore is a joke. (iv) When SH cannot keep up with the series of rights issues, TH will very likely takeover. Then all the monies SH pumped in before for acquistions, impairments, etc etc will benefit the final owner of SMM. At that time SH can only pray that the offer price returns them a single digit percent of what they had pumped in.   TigerPlay      ( Date: 09-Jul-2021 11:34) Posted: Since the right is placed at such a low price of 8cts, most SH without financial difficulty would be subscribing to it logically, unless confident is not there, but then u will be losing big big if dun. now, we can understand why they place it at 8cts instead of say 15cts laiow
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TigerPlay Master	09-Jul-2021 11:36        TigerPlay About Contact  Quote this Post!
x 0   x 0  Alert Admin	For now, the price should stay around 12cts till right is all settled. After that, not sure how it will move then, just hoping they dun send another surprise that will crash it...touch wood hor
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TigerPlay Master	09-Jul-2021 11:34        TigerPlay About Contact  Quote this Post!
x 0   x 0  Alert Admin	Since the right is placed at such a low price of 8cts, most SH without financial difficulty would be subscribing to it logically, unless confident is not there, but then u will be losing big big if dun. now, we can understand why they place it at 8cts instead of say 15cts laiow
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Abe2021 Veteran	09-Jul-2021 11:08        Abe2021 About Contact  Quote this Post!
x 0   x 0  Alert Admin	Agree with me the best talk is action and some news release. Au revoir 🥸
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