Sembcorp Marine disposes nine jackup rigs for $1.8b

Their worth is a 30% drop from the original value.

Sembcorp Marine disposed nine jackup rigs to Borr Drilling Limited (Borr) for $1.8b (US$1.3b).

According to DBS Equity Research, the price suggests an average resale price of $196.4m (US$144m) per rig, a 30% drop from the original contract value.

However, the loss of income is largely offset by deposits collected and provisions made.

DBS said Borr's upfront payment of US$502m would help to lower Sembcorp Marine’s net gearing by 0.25x.

Here's more from DBS Equity Research:

The successful disposal of all six terminated jackup rigs and three newbuild jackup rigs (options which customers failed to exercise) removes a major concern on SMM.

The only other jackup rig currently under construction for Japan Drilling is considered “safe” as it is backed by BOT Lease.

SMM will continue to actively market West Rigel - the harsh-environment ultra-deepwater semisubmersible rig built for financially distressed North Atlantic Drilling at a contract value of US$568m.

Reaching the people who run Asia's businesses is harder than it used to be.

Inboxes are crowded. Attention is short. The executives you most want to reach — the founders, CFOs, and operators who actually move budgets — are the hardest to find through the usual channels. If you're building a company, a category, or a reputation, you already know this.

We've spent twenty years building the room they read. Singapore Business Review is where senior decision makers in Singapore and across Southeast Asia come for business coverage they can't get elsewhere — in print, online, and in person at the summits and roundtables we host across seven markets.

If you have something these readers should know about — a point of view worth publishing, a product worth their attention, an event worth their time — we'd like to hear what you're trying to do.

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