Sembcorp completes S$1.5b rights offering

The company said the raised capital is enough to meet "projected operation funding requirements” until 2022.

Sembcorp Marine Ltd has completed its S$1.5b rights offering in September 2021.

With the completion, the company said it will be able to meet its “projected operational funding requirements through to at least end-2022.”

The company currently has 16 projects under execution and two of which are scheduled for completion in FY2021, 12 by FY2022, and the rest by 2025.

Completed projects during the quarter were the fabrication of two wellhead and one riser topsides and two bridges for deployment to TotalEnergies’ Tyra East Redevelopment Field; and delivery of Offshore Substation (OSS) and Reactive Compensation Station (RCS) in August 2021 to Ørsted Wind Power subsidiary Optimus Wind Limited.

Out of the 16 projects, five were delayed by one to three months due to COVID which the company expects to bring losses to the company in 1H2021. 

Sembcorp said it will be able to quantify its actual losses from the delays by end of the financial year ending 31 December 2021.

Meanwhile, the company also has S$0.18b worth of ongoing repairs and upgrades for delivery by 2022. 

Aside from their projects under execution, the capital raised was used to repay a S$430 million loan facility.