Sembmarine dreads double whammy from pandemic and oil price drop

They are expecting business activity to remain low.

Sembcorp Marine (Sembmarine) is expecting to face difficulties in securing new orders amidst the collapse in oil prices, according to a local bourse filing. Further, the COVID-19 pandemic has resulted in delays in the execution and completion of their existing projects.

The pandemic has specifically weighed on its global shipping operations and the repairs & upgrades business. Industry-wide cuts in capital expenditure (CAPEX) have affected the group’s ongoing negotiations and finalisation of new orders, including the Siccar Point Cambo Floating Production, Storage and Offloading (FPSO) project.

The project’s final investment decision (FID) is now postponed until 2021.

“The above have resulted in low overall business volume for the Group. This in turn impacted the group’s revenue recognition and overall bottom line performance,” Sembmarine stated.

So far, Sembmarine revealed that they generated positive cash flow from operations in Q1 and remained in a net current liabilities position, arising mainly from loans maturing in 2020. Net finance costs also rose on the back of ongoing refinancing measures.

“We are finalising with our lenders to refinance and re-profile these loans with longer term maturities. We have adequate existing loan facilities to refinance current borrowings as they fall due,” the group added.

However, Sembmarine is expecting their business activity levels to remain low, except for the repairs & upgrades segment. Overall business volumes for all segments are projected to further weaken for the rest of the year. “Our current priority is to ensure that we have adequate liquidity to sustain operations and ride through this severe downturn,” the firm said.

You're the reader we write for. You're also the person our partners want to reach.

If that sentence describes you — a founder, a C-suite, someone whose attention companies pay good money for — then you already understand why SBR works. We've spent twenty years earning the trust of readers exactly like you. Which is exactly what makes this an interesting place for your company to show up, too.

The ways it can show up are broader than most people assume — thought leadership articles, sponsored content, industry summits across Southeast Asia, regional awards programmes, podcasts, and media placements in print and digital. The right fit depends on what you're trying to do, which is why we'd rather start with a conversation than send a rate card.

If your company has something this audience should know about, we'd like to hear what you're working on.

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

Top News

30 One-Sentence Stories From People Who Have Built Better Habits

None of these stories are mine. They were sent to me by readers of Atomic Habits. My hope is that these examples will illustrate how real people are putting the book into practice. They will show you what people are actually doing to build good habits and break bad ones. And hopefully, they will spark some ideas for how you can do the same.

news conversion

SBR 5 Lorem Ipsum News 2 [8 May]

Lorem Ipsum is simply dummy text of the printing and typesetting industry. Lorem Ipsum has been the industry's standard dummy text ever since the 1500s, when an unknown printer took a galley of type and scrambled it to make a type specimen book. It has survived not only five centuries, but also the leap into electronic typesetting, remaining essentially unchanged. It was popularised in the 1960s with the release of Letraset sheets containing Lorem Ipsum passages, and more recently with desktop publishing software like Aldus PageMaker including versions of Lorem Ipsum.

SBR 4 Lorem Ipsum [8 May Top Stories]