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Sembmarine

Sembcorp Marine posted a net loss of
  $74 million (FY 2018)
$137 million (FY 2019), 
$192million (1st half 2020)
GG Liao.

 

After the right issue they only receive a 600mil cash on hand.. 1h of 2020 already lose away 192mil.. How many half or years can they burn? It a sinking ship.. It been 3 or 4 years loses.. If really no contract till oil recover to $60, shareholder will sink with them..

michaeltan      ( Date: 15-Jul-2020 19:15) Posted: Provided the shareholders support the deal then only chance for the company to turn it around. danger      ( Date: 15-Jul-2020 18:43) Posted: 40.This is why the Sembcorp Marine&rsquo s Board and Management, after considering various financing options, believe that a $2.1 billion Equity Rights Issue (&ldquo Rights Issue&rdquo ) presents the best option for us to recapitalise the Group. The proposed Rights Issue, when completed, will strengthen our balance sheet by converting our $1.5 billion Subordinated Loan from SCI into equity on our balance sheet. This will lower our net gearing as at end 2019 from 1.82 times to 0.45 times on a pro forma basis, and significantly reduce our interest expense. We will also raise approximately $0.6 billion additional cash to fund our working capital needs and other general corporate purposes, enable us to compete for high- value new orders and overall ensure our long-term viability We hope that shareholders will support our Rights Issue, so that we will have the financial resources to better position the Company for the industry&rsquo s recovery. We want to be ready for new opportunities, particularly in the clean energy segments where we hope to enlarge our footprint in offshore wind solutions and other green solutions.

 

Provided the shareholders support the deal then only chance for the company to turn it around.

danger      ( Date: 15-Jul-2020 18:43) Posted: 40.This is why the Sembcorp Marine&rsquo s Board and Management, after considering various financing options, believe that a $2.1 billion Equity Rights Issue (&ldquo Rights Issue&rdquo ) presents the best option for us to recapitalise the Group. The proposed Rights Issue, when completed, will strengthen our balance sheet by converting our $1.5 billion Subordinated Loan from SCI into equity on our balance sheet. This will lower our net gearing as at end 2019 from 1.82 times to 0.45 times on a pro forma basis, and significantly reduce our interest expense. We will also raise approximately $0.6 billion additional cash to fund our working capital needs and other general corporate purposes, enable us to compete for high- value new orders and overall ensure our long-term viability We hope that shareholders will support our Rights Issue, so that we will have the financial resources to better position the Company for the industry&rsquo s recovery. We want to be ready for new opportunities, particularly in the clean energy segments where we hope to enlarge our footprint in offshore wind solutions and other green solutions.

 

40.This is why the Sembcorp Marine&rsquo s Board and Management, after considering various financing options, believe that a $2.1 billion Equity Rights Issue (&ldquo Rights Issue&rdquo ) presents the best option for us to recapitalise the Group. The proposed Rights Issue, when completed, will strengthen our balance sheet by converting our $1.5 billion Subordinated Loan from SCI into equity on our balance sheet. This will lower our net gearing as at end 2019 from 1.82 times to 0.45 times on a pro forma basis, and significantly reduce our interest expense. We will also raise approximately $0.6 billion additional cash to fund our working capital needs and other general corporate purposes, enable us to compete for high- value new orders and overall ensure our long-term viability

We hope that shareholders will support our Rights Issue, so that we will have the financial resources to better position the Company for the industry&rsquo s recovery. We want to be ready for new opportunities, particularly in the clean energy segments where we hope to enlarge our footprint in offshore wind solutions and other green solutions.
 

 

Better than expected. Thought the loss will be much worse

michaeltan      ( Date: 15-Jul-2020 18:24) Posted: PRESS RELEASE Sembcorp Marine reports 1H 2020 net loss of $192 million, hit by COVID-19 shutdown of production activities since April 2020 Key highlights For the 6 months to 30 June 2020 (1H 2020):  Group revenue of $906 million  Group net loss of $192 million  Net order book of $1.91 billion tangoanna      ( Date: 15-Jul-2020 18:16) Posted: Net loss attributable to shareholders was $192 million in 1H 2020, compared to the net loss of $7 million reported in 1H 2019. Terrible losses. Who is that hero who still want to vote down the rights issue?

 

Who want the sinking ship? Hopefully won' t be suspended forever.
Honestly if without the $2 billion lifeline support from parent company SCI. This company may not survive until now. 

Sgvale      ( Date: 15-Jul-2020 16:24) Posted: If privatise instead. Price could be higher than now. Clean cut

 

PRESS RELEASE Sembcorp Marine reports 1H 2020 net loss of $192 million, hit by COVID-19 shutdown of production activities since April 2020 Key highlights For the 6 months to 30 June 2020 (1H 2020):  Group revenue of $906 million  Group net loss of $192 million  Net order book of $1.91 billion

tangoanna      ( Date: 15-Jul-2020 18:16) Posted: Net loss attributable to shareholders was $192 million in 1H 2020, compared to the net loss of $7 million reported in 1H 2019. Terrible losses. Who is that hero who still want to vote down the rights issue?

 

SIAS stands for siasua is it? What happen to Midas scandal? Miss informed the shareholders of best award most transparent company.
 

FATABA      ( Date: 15-Jul-2020 12:57) Posted: Sias is really a joke ...since the Midas case where they award the MD as best ceo ( or something ) ....why they dont do anything ot even REMOVE they awarded title. .... The offerer certainly has work out what is the best offer for THEM n the FUTURE of the companies they are planning to have .  ( if they wan a privatisation ...they wld hv gone this route alrdy LOL ) Who is willing to pay SCM directly and take it private now. ( taking over all those debt ? ) Further its an offer which is up to the offerer terms n condition clearly spell out ....u can reject it if your wish.  ( private listed companies like rights etc / DO SIAS ask all companies when they issue a right issue ..LOL )  Rather then appreciate that there is another better path out now ( new energy future Temasek backing n lower debt .) : they question why this offer at poor econmic condition ??  LOL, for it to survive lah .....U mean when good times, business booming / NO debt then they offer a 5for1 rights ?  SIAS value is diminishing today ( sorry to say this ) ....especially since the Midas saga which here will remember .  On the flip side ....ITS MUCH EASIER to what would happen to SCM ....IF there is NO offer now , or worst this ONLY offer is dead  ( pay debt , no oil rig,, interest payment on debt growing ,  how to participate in new energy business ....who is going to loan you $$/ customer want to know if  you are around in one year time ? )  The outcome is obvious.  Just my opinion . DYODD   Joelton      ( Date: 15-Jul-2020 10:22) Posted: Sias seeks answers from Sembcorp and Sembmarine ahead of EGMs Investor group asks if other options have been looked into, such as privatising SCM   THE Securities Investors Association Singapore (Sias) is seeking answers from Sembcorp Industries (SCI) and Sembcorp Marine (SCM) on why they are undertaking a S$2.1 billion recapitalisation and divorce amid poor economic conditions.   The investor group wants to know whether the two have explored other options, including a privatisation of SCM, and why they consider their proposed transaction the best option.   SCI and SCM have proposed a recapitalisation of Sembcorp Marine through a S$2.1 billion renounceable rights issue, and a proposed demerger of the two companies via a distribution in specie of SCI' s stake in the recapitalised SCM to SCI shareholders.   SCM hopes to raise S$2.1 billion under a five-for-one renounceable rights issue at an issue price of S$0.20 per share. SCI has undertaken to subscribe for up to S$1.5 billion of rights shares, by setting off the S$1.5 billion outstanding under its subordinated loan to SCM. Temasek will sub-underwrite the remaining S$600 million.   The proposed separation will be via a distribution in specie of SCI' s stake in the recapitalised SCM to SCI shareholders as dividends. Shareholders of SCI will get between 427 and 491 SCM shares for every 100 SCI shares, with no cash outlay required.   Both will be seeking their respective shareholders' approval for the transaction at extraordinary general meetings (EGMs), expected between end-August and early September.   The rights issue is conditional on SCM shareholders passing a resolution to waive their rights to receive a general offer from Temasek and its concert parties in connection with the proposed distribution.   The proposed distribution and the rights issue are inter-conditional, and will proceed only if shareholder approvals are received for all resolutions at both companies' EGMs.   David Gerald, Sias president and chief executive officer, asks what will happen to the transaction if any one of the resolutions is not passed, and whether there is a contingency plan.   On the proposed rights issue, he noted that SCI is owed S$1.5 billion by SCM.   " Arguably, the economic effect is that SCI is writing off SCM' s debt. The proposal benefits SCI' s shareholders since they receive between 427 and 491 SCM shares without additional payment, (but) how does writing off the debt of a related party benefit SCI as a company?" he asked.   He wondered if the reduction of SCI' s debt after the transaction is driven by accounting treatment rather than expected economic improvements to SCI' s business.   " It can be argued that the expected improvements in earnings per share and return on equity and net debt-to-earning before interest, tax, depreciation and amortisation ratio are dependent on SCI not consolidating SCM' s debt. Again, this is an outcome of accounting treatment.   " Can management discuss specific initiatives and/or projects, independent of accounting treatment, that will add real shareholder value?" Mr Gerald asked.   He sought specifics from SCI on how much shareholder value is going to be improved as a result of the proposed transaction.   He also asked if SCI management would consider abstaining from voting on the rights issue, given that it owns 61 per cent of SCM.   " SCI has provided an irrevocable undertaking to vote in favour of the rights issue. Since a simple majority of 50 per cent is required, does this not suggest that even if all SCM' s public shareholders vote against the proposal, it will still be approved?"   " Would management like to clarify how this proposal, as presently structured, gives SCM' s public shareholders any actual say in the matter?"   He wants SCM to explain how using S$600 million for working capital and general corporate purposes, including debt servicing, will create a strong long-term future for the group.   Noting that interest rates have fallen substantially in recent months, he asked if SCM would consider refinancing its debt rather than raising fresh funds from SCM' s public shareholders.   SCM management has been asked to explain how it would execute " building a sustainable business model for the future" post transaction.   " The proposed recapitalisation improves SCM' s financial health, but it does not, on its own, improve shareholder value in the long-term," Mr Gerald said.

 

Net loss attributable to shareholders was $192 million in 1H 2020, compared to the net loss of $7 million reported in 1H 2019.

Terrible losses. Who is that hero who still want to vote down the rights issue?

 

Privatise a company include HOLDING or paying up  its debt ....look at SCM who is willing to do it ? ( if any) 
T and SCI has certainly look at this if not they dont hv to come up  this merger/right plan . 
So I really doubt any chance.  And if any how can the offer b any good w that amt of debt .
Dyodd

Sgvale      ( Date: 15-Jul-2020 16:24) Posted: If privatise instead. Price could be higher than now. Clean cut

 

If privatise instead. Price could be higher than now. Clean cut

 

Sias is really a joke ...since the Midas case where they award the MD as best ceo ( or something ) ....why they dont do anything ot even REMOVE they awarded title. ....

The offerer certainly has work out what is the best offer for THEM n the FUTURE of the companies they are planning to have . 
( if they wan a privatisation ...they wld hv gone this route alrdy LOL ) Who is willing to pay SCM directly and take it private now. ( taking over all those debt ? )

Further its an offer which is up to the offerer terms n condition clearly spell out ....u can reject it if your wish. 
( private listed companies like rights etc / DO SIAS ask all companies when they issue a right issue ..LOL ) 

Rather then appreciate that there is another better path out now ( new energy future Temasek backing n lower debt .) : they question why this offer at poor econmic condition ??  LOL, for it to survive lah .....U mean when good times, business booming / NO debt then they offer a 5for1 rights ? 

SIAS value is diminishing today ( sorry to say this ) ....especially since the Midas saga which here will remember . 

On the flip side ....ITS MUCH EASIER to what would happen to SCM ....IF there is NO offer now , or worst this ONLY offer is dead 
( pay debt , no oil rig,, interest payment on debt growing ,  how to participate in new energy business ....who is going to loan you $$/ customer want to know if 
you are around in one year time ? )  The outcome is obvious. 
Just my opinion . DYODD

 

Joelton      ( Date: 15-Jul-2020 10:22) Posted: Sias seeks answers from Sembcorp and Sembmarine ahead of EGMs Investor group asks if other options have been looked into, such as privatising SCM   THE Securities Investors Association Singapore (Sias) is seeking answers from Sembcorp Industries (SCI) and Sembcorp Marine (SCM) on why they are undertaking a S$2.1 billion recapitalisation and divorce amid poor economic conditions.   The investor group wants to know whether the two have explored other options, including a privatisation of SCM, and why they consider their proposed transaction the best option.   SCI and SCM have proposed a recapitalisation of Sembcorp Marine through a S$2.1 billion renounceable rights issue, and a proposed demerger of the two companies via a distribution in specie of SCI' s stake in the recapitalised SCM to SCI shareholders.   SCM hopes to raise S$2.1 billion under a five-for-one renounceable rights issue at an issue price of S$0.20 per share. SCI has undertaken to subscribe for up to S$1.5 billion of rights shares, by setting off the S$1.5 billion outstanding under its subordinated loan to SCM. Temasek will sub-underwrite the remaining S$600 million.   The proposed separation will be via a distribution in specie of SCI' s stake in the recapitalised SCM to SCI shareholders as dividends. Shareholders of SCI will get between 427 and 491 SCM shares for every 100 SCI shares, with no cash outlay required.   Both will be seeking their respective shareholders' approval for the transaction at extraordinary general meetings (EGMs), expected between end-August and early September.   The rights issue is conditional on SCM shareholders passing a resolution to waive their rights to receive a general offer from Temasek and its concert parties in connection with the proposed distribution.   The proposed distribution and the rights issue are inter-conditional, and will proceed only if shareholder approvals are received for all resolutions at both companies' EGMs.   David Gerald, Sias president and chief executive officer, asks what will happen to the transaction if any one of the resolutions is not passed, and whether there is a contingency plan.   On the proposed rights issue, he noted that SCI is owed S$1.5 billion by SCM.   " Arguably, the economic effect is that SCI is writing off SCM' s debt. The proposal benefits SCI' s shareholders since they receive between 427 and 491 SCM shares without additional payment, (but) how does writing off the debt of a related party benefit SCI as a company?" he asked.   He wondered if the reduction of SCI' s debt after the transaction is driven by accounting treatment rather than expected economic improvements to SCI' s business.   " It can be argued that the expected improvements in earnings per share and return on equity and net debt-to-earning before interest, tax, depreciation and amortisation ratio are dependent on SCI not consolidating SCM' s debt. Again, this is an outcome of accounting treatment.   " Can management discuss specific initiatives and/or projects, independent of accounting treatment, that will add real shareholder value?" Mr Gerald asked.   He sought specifics from SCI on how much shareholder value is going to be improved as a result of the proposed transaction.   He also asked if SCI management would consider abstaining from voting on the rights issue, given that it owns 61 per cent of SCM.   " SCI has provided an irrevocable undertaking to vote in favour of the rights issue. Since a simple majority of 50 per cent is required, does this not suggest that even if all SCM' s public shareholders vote against the proposal, it will still be approved?"   " Would management like to clarify how this proposal, as presently structured, gives SCM' s public shareholders any actual say in the matter?"   He wants SCM to explain how using S$600 million for working capital and general corporate purposes, including debt servicing, will create a strong long-term future for the group.   Noting that interest rates have fallen substantially in recent months, he asked if SCM would consider refinancing its debt rather than raising fresh funds from SCM' s public shareholders.   SCM management has been asked to explain how it would execute " building a sustainable business model for the future" post transaction.   " The proposed recapitalisation improves SCM' s financial health, but it does not, on its own, improve shareholder value in the long-term," Mr Gerald said.

 

sias.org.sg/event/sembcorp-industries-virtual-dialogue-session-for-shareholders/

 

better than uplorry right?

Octavia      ( Date: 15-Jul-2020 10:35) Posted: Literally force shareholders to take bitter pill like it anot.

 

not sure if SIAS got the fact right, there are 3 resolutions right, SCI will abstain for the last round specific to whitewash resolution. SCI Irrevocable undertaking only apply to ordinary resolution and not whitewash, with three conditions being interconditional. i wish SIAs can get the facts right sometimes

Joelton      ( Date: 15-Jul-2020 10:22) Posted: Sias seeks answers from Sembcorp and Sembmarine ahead of EGMs Investor group asks if other options have been looked into, such as privatising SCM   THE Securities Investors Association Singapore (Sias) is seeking answers from Sembcorp Industries (SCI) and Sembcorp Marine (SCM) on why they are undertaking a S$2.1 billion recapitalisation and divorce amid poor economic conditions.   The investor group wants to know whether the two have explored other options, including a privatisation of SCM, and why they consider their proposed transaction the best option.   SCI and SCM have proposed a recapitalisation of Sembcorp Marine through a S$2.1 billion renounceable rights issue, and a proposed demerger of the two companies via a distribution in specie of SCI' s stake in the recapitalised SCM to SCI shareholders.   SCM hopes to raise S$2.1 billion under a five-for-one renounceable rights issue at an issue price of S$0.20 per share. SCI has undertaken to subscribe for up to S$1.5 billion of rights shares, by setting off the S$1.5 billion outstanding under its subordinated loan to SCM. Temasek will sub-underwrite the remaining S$600 million.   The proposed separation will be via a distribution in specie of SCI' s stake in the recapitalised SCM to SCI shareholders as dividends. Shareholders of SCI will get between 427 and 491 SCM shares for every 100 SCI shares, with no cash outlay required.   Both will be seeking their respective shareholders' approval for the transaction at extraordinary general meetings (EGMs), expected between end-August and early September.   The rights issue is conditional on SCM shareholders passing a resolution to waive their rights to receive a general offer from Temasek and its concert parties in connection with the proposed distribution.   The proposed distribution and the rights issue are inter-conditional, and will proceed only if shareholder approvals are received for all resolutions at both companies' EGMs.   David Gerald, Sias president and chief executive officer, asks what will happen to the transaction if any one of the resolutions is not passed, and whether there is a contingency plan.   On the proposed rights issue, he noted that SCI is owed S$1.5 billion by SCM.   " Arguably, the economic effect is that SCI is writing off SCM' s debt. The proposal benefits SCI' s shareholders since they receive between 427 and 491 SCM shares without additional payment, (but) how does writing off the debt of a related party benefit SCI as a company?" he asked.   He wondered if the reduction of SCI' s debt after the transaction is driven by accounting treatment rather than expected economic improvements to SCI' s business.   " It can be argued that the expected improvements in earnings per share and return on equity and net debt-to-earning before interest, tax, depreciation and amortisation ratio are dependent on SCI not consolidating SCM' s debt. Again, this is an outcome of accounting treatment.   " Can management discuss specific initiatives and/or projects, independent of accounting treatment, that will add real shareholder value?" Mr Gerald asked.   He sought specifics from SCI on how much shareholder value is going to be improved as a result of the proposed transaction.   He also asked if SCI management would consider abstaining from voting on the rights issue, given that it owns 61 per cent of SCM.   " SCI has provided an irrevocable undertaking to vote in favour of the rights issue. Since a simple majority of 50 per cent is required, does this not suggest that even if all SCM' s public shareholders vote against the proposal, it will still be approved?"   " Would management like to clarify how this proposal, as presently structured, gives SCM' s public shareholders any actual say in the matter?"   He wants SCM to explain how using S$600 million for working capital and general corporate purposes, including debt servicing, will create a strong long-term future for the group.   Noting that interest rates have fallen substantially in recent months, he asked if SCM would consider refinancing its debt rather than raising fresh funds from SCM' s public shareholders.   SCM management has been asked to explain how it would execute " building a sustainable business model for the future" post transaction.   " The proposed recapitalisation improves SCM' s financial health, but it does not, on its own, improve shareholder value in the long-term," Mr Gerald said.

 

Literally force shareholders to take bitter pill like it anot.

 

 

Will it have more Good news to take it higher? Stuck for long.

better      ( Date: 10-Jul-2020 14:22) Posted: Breaking news: Sembcorp Marine and GE bag contract to build giant wind farm in North Sea worth S$5.3b The trading pattern for sembcorp marine has been pretty bullish the last few weeks. Almost without fail, the accumulators of sembcorp shares will sell down the share by 1-2 cents in the last minutes of every trading day so they can buy more shares at lower prices the following day. With sembcorp marine CEO being the co-chair of  International Advisory Panel on Maritime Decarbonisation, it is highly likely to win more wind farm and renewable projects in the coming years. The " accumulators" of sembcorp shares are likely to veto the rights issue like me as Sembcorp marine is in good financial position with over S$1+billion cash to tap on if need be. (remaining S$600m from SCI' s surbordinated loan and a USD$500m revolving facility by Standard Chartered bank to its wholly-owned subsidiary, Estaleiro Jurong Aracruz Ltda (&ldquo EJA&rdquo ), secured on the 5th June 2020) With crude oil prices back to slightly above USD$40 per barrel, the rig orders should start flowing again soon. Looks like 2021 would be a boom year for SMM. Disclaimer: I am an interested party with about 950k SMM shares

 

It's still a good news. And to think about it, it's a most likely deal since it's published. Profits may not be this term. Not until 2022 to see it included into their financial reporting. Look long term.

josemmm123      ( Date: 10-Jul-2020 19:49) Posted: i dun think it will move the share price cos is not even signed or approved and the whole thing only starts 2022. 2021 is for approval. Now only " preferred" partner, nothing concrete.. and Semb Marine role is just building the platform only and it does not mean it will be profit, they may incur a loss if the they bid too low. Dun place too much hope. GE Renewable Energy' s Grid Solutions is the main winner if approved. businesstimes.com.sg/companies-markets/sembmarine-and-ge-bag-contract-to-build-wind-farm-in-north-sea SEMBCORP Marine and its consortium partner have been picked by German utilities company RWE as the preferred suppliers of the electrical transmission system for one of the world' s biggest offshore wind farms located at sea north-east of the United Kingdom. Sembcorp Marine, together with GE Renewable Energy' s Grid Solutions, will start early design works for the Sofia Offshore Wind Farm this month. The full contract is subject to a final investment decision, which is due in the first quarter of 2021.      If approved, it is expected that Sembcorp Marine will build and install the wind farm& rsquo s offshore converter platform. As the consortium leader, GE& rsquo s Grid Solutions will be responsible for the engineering, procurement, construction and installation of the two HVDC converter stations.