Why Sembcorp should not expect much from its shipyard segment

Its new build orders will likely remain below required replenishment levels.

Sembcorp Marine's earnings outlook for shipyards remains weak, a report by UOB KayHian noted. This comes as new build orders are likely to remain below the $4b to $5b order replenishment level that the group requires annually.

"However, we are cognizant of tactical trades in the current environment, driven by contract awards. We estimate that for every $500m in additional contract wins above our assumption, translates to a 3-4% upside to target price," the brokerage firm said.

Meanwhile, UOB noted that the group is well-positioned to capitalise on higher liquefied natural gas demand, which will spur the need for more LNG terminals.

Sembcorp Marine (SMM) is well-positioned to capitalise on this through its stake in GraviFloat. GraviFloat’s technology of redeployable, gravity-based, modularised LNG and LPG terminals serves as a 10-30% more cost-effective solution than FSRU solutions. This is an attractive proposition in the current budget-conscious environment.

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