Sembmarine mulls over selling West Rigel
If it happens, Sembmarine's net gearing could fall to 70%.
Sembcorp Marine's (Sembmarine) sale of its West Rigel submersible might be on the horizon, UOB Kay Hian said, citing rig brokers.
A Sembmarine spokesperson declined to comment and said the reports are based on market hearsay.
"Should there be any material developments related to Sembcorp Marine, please be assured that we will issue the necessary market announcement," the spokesperson said.
According to UOB Kay Hian, the key focus of such an event will be the deleveraging of Sembmarine’s balance sheet. If the provisions made are sufficient, the rig can be sold for no loss.
"Under such a scenario, the cash inflow from such a transaction will see our 2018 net gearing decline from 85% to ~70%," said UOB Kay Hian analyst Foo Zhi Wei.
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