SembMarine's order pipeline could hit $3b in 2019

One major deal is a floating production storage and offloading (FPSO) contract that could be worth up to $2.76b (US$2b).

Although order wins have been behind expectations in m2019 amidst project delays in final investment decisions (FIDs), Sembcorp Marine’s (SMM) strong order pipeline could secure $3b or more worth of new orders in 2019, DBS Equity Research said. The research firm is also positive on SMM’s offshore capital expenditure (capex) recovery ahead.

Amongst these contracts may include a Gravifloat modularised liquefied natural gas (LNG) which could go around $1b, two large Compressed Gas Liquid carriers for SeaOne Caribbean valued at $800m in total, and Rosebank’s floating production storage and offloading (FPSO) contract that could be worth up to $2.76b (US$2b).

The firm has so far clinched around $1b of new orders YTD.

Also read: Sembcorp Marine sank into a $29.76m loss in Q3

Other upside risk could come from privatisation or merger & acquisition (M&A) activities, as well as the write-back of provisions from successful deliveries or vessel sales, DBS Equity Research said.

Meanwhile, key downside risks include continued sinking of oil prices which would affect rig count and new building activities, execution risks in new product types.

SMM experiecned its net profits sink further to $29.76m in Q3 amidst loss upon the sale of a semi-submersible and continued low overall business volume which impacted the absorption of overhead costs.

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