Seatrium Limited (formerly SembCorp Marine and KOM)

[CY09]

Market has given a thumbs down to the proposed rights and shares have fallen 25% to be at 14 cents.

In terms of asset value, SCM is a steal. However, the continuous amount of rights raising is depleting investor's war chest and they risk being overly concentrated on SCM

I wonder how many investors will rise up and vote against the rights issue.

[retired1again]

Agreed that this new round of right issue is depleting especially retail investors war chest with 2 heavy weight right issue exercises within 1 year.

Temasek has given their Irrevocable undertaking to vote in favor of this new right issue and to subscribe up to 67% of total right issue. It is sad and painful but this is almost be a done deal.

[valuebuddies]

I feel like, its not the right time to announce the rights issue, or if they could put the strike price at anything higher than 15c at lower dilution ratio, it would be something positive to the share price, taking into consideration of the strong support from Temasek and DBS. Now, we have 8c as the base price, probably we wouldn't see anything positive to the share price until the rights issue is confirmed.

[CY09]

I do agree with "valuebuddies". The discount to TERP for this round (35.7%) is higher than last year's discount to TERP at 35.1% to last price; the difference in discount is even more pronounced if 5 days VWAP is used. This is weird because SCM is now in a stronger financial position with a lower leverage ratio and higher net cash balance. It would have been more paltabale if the discount was in the region of low 20+% to TERP.

As a shareholder of SCM, I plan to write to SIAS to appeal and question on why such a huge discount is needed.

[dydx]

After the proposed 3-for-2 rights issue @$0.08 per new share, SembCorp Marine will end up having an enlarged shares base of close to 31.4b issued shares..
https://links.sgx.com/FileOpen/Launch%20...eID=672228

More than enough shares for the population of the whole world!

[Shrivathsa]

Back in 2017, there was speculation that Sembcorp and Keppel Corp would agree on a deal to merge the Oil Rig businesses of Keppel Corp and Sembcorp Marine together.

I am not sure why, but I think the deal was rejected by Sembcorp Marine.

Sembcorp Marine was trading at SGD 1.8 then.

In hindsight, they should have done that as it would have spared this kind of devaluation of Sembcorp Marine from the days of trading at SGD 1.8 to SGD 0.08, a 95% drop.

[donmihaihai]

Back in 2017, there was speculation that Sembcorp and Keppel Corp would agree on a deal to merge the Oil Rig businesses of Keppel Corp and Sembcorp Marine together.

I am not sure why, but I think the deal was rejected by Sembcorp Marine.

Sembcorp Marine was trading at SGD 1.8 then.

In hindsight, they should have done that as it would have spared this kind of devaluation of Sembcorp Marine from the days of trading at SGD 1.8 to SGD 0.08, a 95% drop.

Merger then or now will not change how well the company operates. Share price is another story.

Sembcorp Marine financial position was very weak at dec 2020. Cash call is not a surprise. In fact keppel segmental result at the same time say it is as bad or even weaker. Add that on unable to carry out normal operation due to manpower. Not that hard to guess what next

[¯|_(ツ)_/¯]

SembCorp Marine@12

Sembcorp Marine Ltd, through its wholly owned subsidiary, Estaleiro Jurong Aracruz (EJA), has secured an Amendment Contract from Tupi B.V. valued at about USD175 million (approximately SGD230 million) for modification work to be completed on the Floating Production Storage and Offloading (FPSO) P-71 oil and gas vessel.

Originally designed for the Tupi field, the FPSO P-71 will undergo modification and integration at EJA for deployment at the Itapu field.

This Project provides an opportunity to showcase EJA’s capabilities to undertake large scale and complex engineering projects with quick design adaptation and superior subsea layout

Amid the pandemic-induced challenges, we remain committed to the safe and timely execution of the project.
https://links.sgx.com/FileOpen/Annouceme...eID=673223

Stay home and stay safe, everyone.
When I read this news, all the key words for project failure came into my mine. What was management of SembCorp Marine thinking?
1) Originally designed for Tupi field and now need to modify to cater for Itapu field - had they consider the extends of the modification needed?
2) Yes, they sure did. This is going to be a large scale and complex project.
3) ok. if this is the case, ample time will be given for the changes, right?
I doubt so, first, the design phase is cut short - see they use the word "quick design"?
Then see the word "timely execution" which means that need to squeeze implementation time (other than squeezing design time) too.

[¯|_(ツ)_/¯]

SMM@12
Clarifications on BT letters by Ben Paul:
https://links.sgx.com/FileOpen/LETTER%20...eID=673880


Coincidentally, yesterday in his maiden speech in Parliament as minister of MOF shared his actual concern on this sector too. 

Watch the youtube video and see whether it's inline with what you think.
https://www.youtube.com/watch?v=Qu9wxR3yFRg

Stay home and stay safe, everyone.

[Shrivathsa]

Interesting article in the Straits Times about how retail investors are buying into the stock in the belief that

a) There will be a take-over by Temasek and
b) There will be a premium to the VWAP of the last traded price.

https://www.straitstimes.com/business/co...sembmarine

Summary for valuebuddies, who are pressed for time, In the opinion of the analyst, even if there is a take-over, the price will be eight cents to ensure that Sembcorp Marine stays listed.