Shipping & Marine

What you must know about Sembcorp Marine's latest acquisition move

It's acquiring membership interests in Equinox. According to DBS Vickers, Sembcorp Marine (SMM) announced that its subsidiary Sembawang Shipyard Pte Ltd has exercised its voting rights to acquire all the membership interests in Equinox Offshore Brazil Cooperative U.A (EOB) and shares in Equinox Offshore ARV3 BV (EO ARV3) as EO ARV3 remained in default of its payment obligations for the conversion of the accommodation and repair vessel ARV3 due to financing difficulties.  Read ››

IMDEX Asia 2015 exhibition space already 65% booked

Exhibition space fast dwindling. In a release, organizers of International Maritime Defence Exhibition (IMDEX Asia) said that 65% of exhibition space for IMDEX Asia 2015 has already been booked, following a successful show of its ninth edition last week. Read ››

Here are the 2 biggest threats to Sembcorp Marine's new Tuas Yard

It'll start operating around July 2013. According to Barclays, the new Tuas yard remains on schedule to commence operations in July 2013, with the four new dry docks adding c1.6mn DWT of capacity, more than doubling the current capacity at Jurong Shipyard.  With additional fabrication capacity of c144,000mn metric tonnes annually and c80% crane coverage from the improved crane capabilities, Sembcorp Marine expects to improve efficiency and lower costs. Read ››

Why NOL is still likely to struggle with orderbook problems until 2015

Spot rates have been diving sharply. According to DBS, the Asia-Europe/ Mediterranean spot rates have nosedived at a speed we hadn’t anticipated at the start of 2013, and are currently at their lowest since early-2012.  So far, three rounds of rate increases have proved unsuccessful in 2013, as the supply glut meant capacity discipline didn’t hold much sway. Read ››

Why 2013 might be a record year for Singapore's jack-up deliveries

55 units are to be delivered. According to Barclays, 2013 is on track to record the highest number of jack-up deliveries in the past 30 years. Read ››

Here is the biggest threat to NOL on its way to recovery

Freight rates for 2Q13 have dipped. Citing the Shanghai Containerised Freight Index, OCBC reported that freight rates for 2Q13 thus far have declined quite considerably across most routes – with the exception of the Intra-Asia route – and this could hurt the ongoing recovery process for NOL. Read ››

Sembcorp Marine's new Tuas yard predicted to boost cost savings to 20%

How will margins benefit? According to Barclays, Sembcorp Marine’s CEO, Mr Wong Weng Sun, presented at the annual Offshore Technology Conference on ‘The development of the next-generation yard’, in reference to the opening of the company’s new Tuas yard in Singapore. Read ››

Torkis David Parlaungan Batubara resigns as Samudera Shipping Line CEO

He was also executive director and member of the Nominating Committee. Read ››

Bumitama Agri's core earnings fell 24% to Rp151.5 bn

Whipped by higher transportation cost. According to DBS, Bumitama’s 1Q13 core earnings came in at Rp151.5 bn (-24% y-o-y), representing only 15% of our initial FY estimates.  Read ››

Nam Cheong's net profit jumped 8% to RM35.8m

Revenue also climbed 14% to RM234.7m. According to OCBC Investment Research, Nam Cheong Limited’s revenue and net profit increased by 14% and 8% YoY to RM234.7m and RM35.8m in 1Q13 respectively.  Here's more: Read ››

Marco Polo Marine's net profit soared 121% to S$9.3m

But revenue fell 31%. According to OCBC Investment Research, Marco Polo Marine reported a 31%YoY fall in revenue to S$21.3m but a 121% rise in net profit to S$9.3m in 2QFY13, such that 1HFY13 net profit accounted for 58% of our full year estimate. Read ››

Ezion drew an impressive 227.8% jump in net profit to US$46.2m

Stronger quarters ahead, says analyst. According to OCBC Investment Research, Ezion Holdings reported a 79.3% YoY rise in revenue to US$54.8m and a 227.8% increase in net profit to US$46.2m in 1Q13. Read ››

Sembcorp Marine can still get the jitters from Korean, Chinese rivals

Even if shiprepair sales surge 14%. According to DBS, order book stands at S$13.6b, with work stretching up to 2019 due to the Petrobras projects’ (S$7.9bn) long duration of 8 years.  Although book to bill ratio is high at 3.2x, revenue visibility for 2014 will drop to 63% backed by existing orders. Read ››

Sembcorp Marine pops the champagne on $13.6b orderbook

Deliveries are extending up to 2019. According to Nomura, Sembcorp Marine reported 1Q13 PATMI of SGD119mn, up 5% on y-y basis though significantly lower than consensus of SGD158mn on sales of SGD1.05bn (up 11.4% y-y).  Higher profitability vs. Read ››

VARD wins US$70m deal with Island Offshore

Delivery is set in 3Q14. According to OCBC Investment Research, Vard Holdings, previously known as STX OSV, secured a contract with Island Offshore for the construction of one advanced offshore support vessel worth approximately NOK400m (US$70m).  Here's more: Read ››

Ezra's subsea division sealed US$75m deal with Statoil

Project to last through 2015. Ezra Holdings Limited announced that its subsea division, EMAS AMC, has been awarded a subsea engineering, procurement and offshore construction contract from Statoil for the Smørbukk South Extension’s project. Read ››

Sembcorp Marine appoints two directors

Eddie Teh Ewe Guan and Eric Ang Teik Lim were both named as non-executive director. Read ››

Why Keppel is likely to lose to Sembcorp in recent jack-up rig race

SMM's CJ-70 track record is impressive. Accordng to CIMB, Upstream has reported that Noble Drilling is in pole position to secure a CJ-70 jack-up rig drilling chartering contract from Statoil, which could be announced soon.  This could be followed by the award of rig construction to the Statoil-nominated yards of SMM and Daewoo Shipbuilding. Read ››

Nam Cheong braces for 2 waves of Malaysian orders

19 contracts up for grabs. According to OSK DMG, following the first wave of 24 vessels chartered in 1H13, awarded by Petronas Carigali’s drilling division, it is expecting two more waves. Read ››