Seatrium (formerly known as SembMarine)

[iam802]

This one since I last posted .... did not manage to rebound.

Rather, it hovers around 1.40 and sometimes go below it. Very narrow trading range.

When it consolidate at a level for too long, it reminds me of the chart we saw for Keppel T&T.
- one fine day, it may just jump off the cliff.

link to Keppel T&T chart.
viewtopic.php?f=47&t=1416&p=31826#p31806

[winston]

From CIMB:-

SembCorp Marine (S$1.37) - Production pipeline still positive

SembCorp Marine has secured a S$200m FPSO conversion contract from Modec. We believe that the outlook for the production segment is more positive than rigbuilding as infrastructure is needed to support oil discoveries in recent years.

Separately, SMOE and Saipem are contending with Nippon Steel for a US$600m processing platform project from Premier Oil. We believe that the production segment in the offshore & marine value chain would be less susceptible to credit volatility as FPSO and processing platforms are typically owned and operated by
oil companies with stronger financial muscles.

Maintain Outperform and target price of S$2.28, still based on blended valuations.

[winston]

From Kim Eng:-

Sembcorp Marine – Company update (Rohan Suppiah 64321455) Previous day closing price: $1.61
Recommendation: Hold (maintained)
Target price: $2.10 (maintained)

Sembcorp Marine (SMM) has announced that it has reached agreement with BNP Paribas for a full and final amicable settlement of their original claim of US$50.7m arising from the forex derivatives transaction losses that stemmed from allegedly unauthorised trading carried out by SMM’s ex-finance chief. The claim has been settled for around US$30m.
The outstanding US$50.7m was previously recorded as a continent liability, while another separate charge of S$308.2m had been taken in its FY07 earnings for claims from other banks. Arising from this latest settlement, SMM will now take a charge of approximately US$30m in the fourth quarter of 2008. All outstanding liabilities have now been either provided or accounted for.

We are unable to determine the status of the outstanding disputes with the other banks, but we believe that SMM is unlikely to pursue the matter further. SMM is now in a position to move on from this issue. The latest charge amounts to some 2 cents per share, and will not have a significant effect on SMM’s book value per share. Furthermore, the market has already long ago factored in this liability, and is unlikely to further affect sentiment on the stock.

On account of this latest charge, our FY08 forecast is reduced to S$438.3m, from S$484.5m previously. We maintain our Hold recommendation on SMM, with target price at S$2.10, but we see no near term catalysts for the stock. Fundamentally, the demand for new rigs will remain muted in the current economic environment, with weak demand, crude oil prices below production breakeven and the inability for customers to secure financing for new orders.

[kennynah]

finally, a settlement to this matter, after 1 year into this debacle...

[millionairemind]

January 9, 2009, 7.39 pm (Singapore time)

SembCorp revises terms of 2 rigs, worth unchanged at US$430m

By ANGELA TAN

SembCorp Marine on Friday said PPL Shipyard, a subsidiary, and Seadrill have agreed to revised terms on the two jack up rigs ordered by Seadrill in June 2008.

The company did not reveal details but said the revised terms are mutually beneficial to all parties and that the contract value of the two jack-up rigs remains the same at US$430 million.

It said this is not expected to have any material impact on the net tangible assets and earnings per share of Sembcorp Marine for the year ending December 31, 2009.

[winston]

Singapore Hot Stocks-Sembcorp Marine falls on downgrade

SINGAPORE, Jan 19 (Reuters) - Shares of Sembcorp Marine fell as much as 3 percent on Monday after Credit Suisse downgraded the firm to "underperform" from its previous "neutral" rating.

Credit Suisse also cut its target price to S$0.95 from S$2.15 in a report on Monday as one of the firm's clients, Norway-based Petromena , has said it is facing a $300 million funding gap on three rigs being constructed by Sembcorp.

Petromena and a related firm LOG Rig jointly owe $1.2 billion to Sembcorp Marine, the Credit Suisse report estimated.

"Until Petromena's workout is successfully completed, potential threat of a major customer default may overshadow Sembcorp Marine's share price performance," said analyst Haider Ali.

By 0430 GMT, Sembcorp was down 3 percent to S$1.61.

[winston]

Hmm... Has the cancellation stops ? Is oil now US$150 ? Or people now have financing to drill again ?

=================================================================

Singapore Hot Stocks-Sembcorp Marine gains strong profit

SINGAPORE, Feb 25 (Reuters) - Sembcorp Marine , the world's number two builder of offshore oil rigs, gained as much as 6.5 percent, after the company reported a sharp rise in fourth quarter earnings and gave a positive outlook.

After the market close on Tuesday, Sembcorp Marine said it earned S$69.4 million ($45.5 million) in the three months to December, compared with S$800,000 a year ago when it was hit by foreign exchange losses. The firm also said despite the impact of the financial crisis on oil prices, the long-term fundamentals for marine and offshore industry were positive given the global reliance on oil and the depletion of fossil fuels.

[ID:nSGC001033] A local dealer said Sembcorp Marine's earnings beat market forecasts and an order book of S$9 billion also reassured investors.

"In fact, the company said they were looking for acquisitions, which tells investors that they are cash-rich," he said.

Another dealer, however, attributed Sembcorp Marine's rise partially to short covering after it had fallen sharply in past week. Shares of Sembcorp Marine are still down 12.5 percent so far this year, undeperforming the benchmark Straits Times Index <.FTSTI> which is down 7.6 percent.

By 0201 GMT, Sembcorp Marine was up 5.8 percent at S$1.46, outperforming the benchmark Straits Times Index which rose 0.5 percent.

[winston]

DBS Research Maintains Buy on SembCorp Marine (TP: $1.88).

The company’s new order conversions remain healthy, orders cancellation risk is now lower and the likelihood of more cash payment re-scheduling is low.

Valuation is undemanding at 6.7X FY09 PE.

[winston]

SEMBCORP MARINE - Nomura increased its price target for Sembcorp Marine to S$2.39 from S$2.23 and maintained its "buy" rating after the oil rig builder secured a contract worth $247 million from SeaDragon Offshore Limited this week.

[millionairemind]

April 29, 2009
SembMarine ends rig order
SEMBCORP Marine Ltd, the world's second-biggest maker of oil rigs, terminated a US$423 million (S$632 million) contract with a PetroMena ASA unit, saying the customer missed the final payment for a semi-submersible rig, reported Bloomberg news.

Sembcorp Marine plans to sell the rig and is 'confident that it will be able to recover all outstanding amounts,' the company said in a statement to the Singapore stock exchange on Wednesday. The amount of the final payment was not given.

A 66 per cent slump in crude oil prices from a peak in July amid the global credit crunch has prompted some rig operators to cancel orders with shipyards or delay payments.

Oil producers are cutting capital budgets 17 percent this year after demand slowed, according to Tristone Capital Inc.

Sembcorp Marine's Jurong Shipyard Pte won the order from PetroRig I Pte, a wholly-owned unit of Norway?s PetroMena, in October 2005.

PetroMena has had difficulties financing some rig construction orders, according to Vytautau Bagdonas, an analyst at Orion Securities in a Feb 25 note.

Sembcorp Marine gained 2 per cent to close the morning session at S$2.03 in Singapore before the statement about PetroMena was issued. The stock has gained 21 per cent this year, compared with the 3.8 per cent rise in the Straits Times Index.

PetroMena's shares have slumped 78 per cent this year.

Sembcorp Marine on April 14 said it is seeking more information on PetroProd Ltd, which was placed under provincial liquidation. Sembcorp Marine won a contract from the Singapore-based oil-services provider to build a $442 million jack-up rig in 2007 and has another order to convert a tanker into a floating production and storage unit.