SembMarine hit with trading query after sharp share price spike

Its share price surged after a massive loss.

The Singapore Exchange has issued a trading query against Sembcorp Marine following the unabated rise in the rig builder’s share price.

SembMarine, which reported its first full-year loss in over a decade on Monday, saw its shares surge by 7.5% in Tuesday’s trading session. The counter closed at $1.57 per share, compared to Monday’s closing price of $1.46 per unit.

The group’s share price continued to rise in early trading on Wednesday. It was one of the top gainers as of 11:30 AM, with the counter up 4.8% to $1.645. Some 4.3 million shares have changed hands.

Analysts reckon that SembMarine’s surge might be driven by a possible privatisation by its major shareholder Temasek, or by its parent company Sembcorp Industries.

“The possible privatization of SembCorp Marine, either by its parent company, Sembcorp Industries, or more possibly by Temasek, could cause an upward rerating catalyst for the stock,” said Joel Ng, analyst at KGI Fraser.

In the fourth quarter, SembMarine reported a staggering net loss of $537m, on back of large provisions for Sete Brasil drillships and other rigs under construction.

“SembMarine is currently trading at its 20 year trough valuations and a privatization angle would make sense in the long term, especially given the strategic importance of the two major Offshore & Marine yards to Singapore’s role as a leading global marine hub,” Ng said.

The people you want to reach are already in this room.

Every quarter, SBR lands on the desks of the founders, CFOs, and directors running Asia's most consequential companies. Every day, they open our newsletter and read our website. It's a room that took twenty years to build — and it's the one most of our partners are trying to get into.

The good news is that the door is open. We work with companies on thought leadership articles, sponsored content, industry summits across Southeast Asia, regional awards programmes, podcasts, and media placements in print and digital. The shape of the right partnership depends on what you're trying to do, which is why we'd rather start with a conversation than send a rate card.

If you have something this room should know about, tell us. We'll tell you honestly whether we can help, and how.

No rate cards until we understand the brief. It's a better use of everyone's time.

Book a meeting

| Or download the media kit (PDF)

240,000 senior readers quarterly in print Top 1,700 Singapore companies reached

7 markets across Southeast Asia