Don’t count on battered Sembcorp Marine being privatised: analysts

Despite booking a whopping loss provision of S$609m.

The prolonged distress in the marine business has left Sembcorp’s marine arm gasping for air, but if analysts are to be believed, there is no reason to believe it would be privatised soon.

According to an analyst report from UOB Kay Hian, Sembcorp’s management said whatever decision it makes has to be accretive to shareholders.

Additionally, UOB Kay Hian said Sembcorp said it already has a 61% stake in Sembcorp Marine, and should reserve its money to grow other businesses that give a higher yield.

“This is in view of an expected prolonged downturn in the marine business,” UOB Kay Hian said.

“SMM had earlier announced a 4Q15 net loss of S$537m due to a loss provision of S$609m for Sete Brasil drillship contracts and other rig contracts, as well as a S$150m loss from associate COSCO Shipyard Group (CSG). The provision was mostly for supply-chain costs, as well as doubtful debts pertaining to some of its riskier rig contracts,” UOB Kay Hian added.

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