singapores sembcorp marine ltd wins north sea contract worth us1 billion 1177922015

Sembcorp secures its second billion dollar contract in the space of six months

Blue avatar for guest contributors
By :  ,  Financial Analyst

Sembcorp Marine Ltd (SGX:S51) said today (September 1) that its subsidiary SMOE Pte Ltd had won an Engineering, Procurement and Construction (EPC) contract worth over US$1 billion (SG$1.41 billion) including long lead items from Maersk Oil North Sea UK Limited.

The contract is for the construction of a central processing facility, two connecting bridges, a wellhead platform and utilities and living quarters’ platform topsides for Maersk’s Culzean Field Development located about 145 miles east of Aberdeen. The work will be accomplished in the UK sector of the Central North sea where the water is approximately 90 metres deep.

Mr. Ho Nee Sin, Sembcorp Marine’s Executive Vice-President and Head of Offshore Platforms said: “We are pleased to secure this mega contract despite stiff competition from world class yards. This is another prestigious North Sea project undertaken by the company where we will work closely with our UK subsidiary Sembmarine SLP as a team.”

While the core fabrication works of the project would be executed at the Sembcorp Marine Admiralty Yard in Singapore, works on a power generation module, two bridges and a flare will be undertaken by  the Sembmarine SLP yard in Lowestoft, UK, Sembcorp said.

This is the second billion-dollar contract secured by Sembcorp in the space of two months. In July the company announced that it had won an Engineering and Construction contract worth approximately US$1 billion with Heerema Offshore Services B.V. (HOS) to build a new DP3 semi-submersible crane vessel (NSCV). The vessel would be designed for activities on the installation and the commissioning of major offshore facilities across the globe and would be built at the Sembcorp Marine Tuas Boulevard Yard, a state-of-the-art yard facility designed to maximise operational synergy and production efficiency.

For the second quarter, Sembcorp Marine reported a profit that was 15 per cent below analysts’ expectations due to lower revenue, higher interest costs and losses on account of COSCO. The company declared a lower interim dividend per share of four Singapore cents.

Sembcorp Marine Ltd (SGX:S51) shares closed August 31 at $2.45, up 2.51 per cent.

Related tags:

Open an account today

Experience award-winning platforms with fast and secure execution.

Web Trader platform

Our sophisticated web-based platform is packed with features.
Economic Calendar