Sembcorp Marine posts S$535 million quarterly loss as orders shrink

yahoo55 · Feb 15, 2016

http://www.businesstimes.com.sg/com...osts-s535-mln-quarterly-loss-as-orders-shrink

Sembcorp Marine posts S$535 million quarterly loss as orders shrink

Feb 15, 2016 5:53 PM

[SINGAPORE] Rig builder Sembcorp Marine Ltd posted a S$535.2 million fourth-quarter loss, hurt by inventories write-downs, provision for foreseeable losses, and as customers delay rig-building projects.

Sembcorp Marine, which competes with its cross-town rival Keppel Corp Ltd for building jack-up rigs, made a S$278 million provision in the fourth quarter for foreseeable losses on contracts in progress.

The group's net order book backlog as of Dec 31, 2015 was S$10.4 billion.

REUTERS

yahoo55 · Feb 15, 2016

Also today COSCO Corp (Singapore) Ltd reported its fourth-quarter loss widened to S$483.8 million from a loss of S$13.2 million a year ago.

Papsmearer · Feb 15, 2016

Going the way of NOL soon?

Cerebral · Feb 15, 2016

This is only the beginning. More to come

Brightkid · Feb 15, 2016

All these under Temasek?

Guess is easier to name their winners in their portfolio? Not that many, if any at all.

JohnTan · Feb 15, 2016

Time to short Sembcorp Marine and Sembcorp Industries?

winnipegjets · Feb 15, 2016

JohnTan said:
Time to short Sembcorp Marine and Sembcorp Industries?

Don't bother. How much can you make?

yahoo55 · Feb 17, 2016

Papsmearer said:
Going the way of NOL soon?

I'm beginning to think so, now investors are hoping that Temasek will bail them out by privatizing the company. More Sinkies CPF money getting burnt by PAP to save GLCs.

http://www.reuters.com/article/sembcorp-marine-brazil-idUSL3N15U2OT

Sembcorp order book may drop $3.2 billion if Sete contracts canceled

Mon Feb 15, 2016 5:10am EST

Feb 15 Singapore rig-builder Sembcorp Marine's order book will be cut by S$3.2 billion ($2.29 billion) should all seven Sete Brasil contracts be canceled, its chief executive said on Monday.

yahoo55 · Feb 17, 2016

http://www.todayonline.com/business/sembcorp-marine-suffers-s537m-q4-loss-brazil-woes

Sembcorp Marine suffers S$537m Q4 loss on Brazil woes

Updated: 10:23 AM, February 16, 2016

Sembcorp Marine’s bigger rival, Keppel Corp, was also hit as Sete Brasil, a major customer for the pair, is running out of funds and has not paid both rig builders since November 2014. Keppel said last month it took a charge of S$230 million because of Sete Brasil.

Sete Brasil has US$10.5 billion (S$14.7 billion) of orders placed with Keppel and Sembcorp Marine, accounting for about 40 per cent of the companies’ order books, according to Nomura Holdings and DBS Vickers Securities. The Brazilian company fell into financial distress after it was unable to secure long-term financing amid allegations of kickbacks to its only client, state-run oil producer Petrobras.

Worldwide, builders of floating facilities for drilling and production have reported losses in recent quarters as oil plunged more than 40 per cent in the past year, leading companies to cut spending and cancel orders. Keppel and Sembcorp Marine face the risk that clients will ask for further delivery delays or cancellations and that new orders will dry up, with crude oil trading at lows not seen in more than a decade. AGENCIES

yahoo55 · Feb 17, 2016

http://www.channelnewsasia.com/news/business/singapore/cosco-singapore-reports-s/2517052.html

COSCO Singapore reports S$570m loss for 2015

Updated 15 Feb 2016 19:30

SINGAPORE: COSCO Singapore has reported a net loss of S$570 million for 2015, hurt by writedown of inventory and possible non-payment by some of its customers.

Announcing this in a statement on Monday (15 Feb), the Singapore-listed Chinese shipyard said the global offshore market continued to slow down significantly with no signs of improvement, due to the weak global economy and depressed oil prices.

These conditions are "likely to persist and even worsen in 2016", it added.

Meanwhile, group turnover decreased 17 percent to S$3.52 billion in 2015, owing to decrease in shipyard and shipping revenue.

Orders for rigs and other offshore and marine equipment have fallen sharply over the past year, as oil companies reduced spending on exploration and production amid the sharp drop in oil prices.

yahoo55 · Feb 17, 2016

Singapore’s exports continue downward slide with 9.9% tumble in January

Published 17 Feb 2016

Singapore’s non-oil domestic exports (NODX) slipped 9.9% year-on-year in January, extending its 7.2% contraction in December.

According to IE Singapore, the drop was on back of a decline in both electronic and non-electronic exports. Shipments to all top markets declined on a year-on-year basis, with the exception of exports to the European Union and Malaysia.

On a year-on-year basis, electronic NODX declined by 0.6% in January 2016, following a 0.3% per cent decrease in the previous month. Meanwhile, non-electronic exports dropped by 13.9% last month, extending the 10.3% decline in the preceding month.

Exports to nearly all top markets dropped, led by China, Taiwan and Hong Kong. NODX to China declined by 25.2% per cent in January, following the previous month’s decrease of 18.7%. Exports to Taiwan dropped 26.5%, while shipments to Hong Kong dropped 9.6%.

Meanwhile, NODX to emerging markets contracted by 19.2% in January, following the 10.0 per cent decrease in the previous month.

On a year-on-year basis, total trade contracted by 14.4% last month following the 8.4% decline in the previous month.

- See more at: http://sbr.com.sg/economy/in-focus/...ide-99-tumble-in-january#sthash.eR6Av7By.dpuf

garlic · Feb 17, 2016

JohnTan said:
Time to short Sembcorp Marine and Sembcorp Industries?

Surprisingly still announced dividends of 2c...

50000 · Feb 17, 2016

yahoo55 said:
http://www.todayonline.com/business/sembcorp-marine-suffers-s537m-q4-loss-brazil-woes

according to the article, Semb Marine made provisions and impairment charges of $609m for the quarter. Only $329m were attributed to the problems with Sete Brazil. That means the balance of $280m is for other things. What else did they hide and use Brasil as an excuse?

blissquek · Feb 18, 2016

JohnTan said:
Time to short Sembcorp Marine and Sembcorp Industries?

You cannot beat the war chest of Ho Ching...you will get burn.

Just look at Olam vs Nobel....that will tell you the story.

yahoo55 · Feb 18, 2016

50000 said:
according to the article, Semb Marine made provisions and impairment charges of $609m for the quarter. Only $329m were attributed to the problems with Sete Brazil. That means the balance of $280m is for other things. What else did they hide and use Brasil as an excuse?

Sete Brazil is 40% of their business. The remaining 60% consists of smaller customers that are also struggling, which is probably what the $280m impairment is for. Semb Marine has been quiet about the status of their other customers.

Forget Sete Brasil: There’s an even bigger cancellation storm ahead for rig builders

Published: 20 Jan 16

While corruption-riddled Sete Brasil’s fate hangs in the balance, Singapore’s two biggest rig builders should also brace for a wave of contract cancellations from its other large customers.

A report by Maybank Kim Eng highlighted that both Keppel Corporation and Sembcorp Marine have already faced order deferments from their clients. The report warned that it is possible that these deferments may eventually turn into cancellations.

“Yards finance their construction with working capital and do not get paid unless clients take delivery. While clients could still take delivery in the end, deferment carries the risk of order cancellation,” Maybank Kim Eng said.

The report warned that a continued downbeat market for oil and depressed asset prices could pile the pressure on clients to forgo deposits. And as many rigs are contracted on backend-loaded payment terms such as 20% downpayment and 80% payment on delivery, both Keppel and SMM may be unable to re-sell contracted rigs at their original prices.

This will lead to a write-down of book values and already-recognised profits. Maybank Kim Eng estimates that both companies stand to lose up to $1 billion if these order deferments do turn into deferments.

“With depressed asset prices and delivery uncertainties, yards may need to mark down their inventories and work-in-progress (WIP). Recognised profits may need to be reversed. We estimate that Keppel and SMM may need to write down as much as SGD1b and SGD0.9b respectively,” said the report.

“More than half our estimate writedown relates to non-Sete Brasil contracts. In our view, this is the other shoe that has yet to drop,” Maybank Kim Eng warned.

- See more at: http://sbr.com.sg/energy-offshore/i...-storm-ahead-rig-builder#sthash.dDohTRCV.dpuf

yahoo55 · Feb 18, 2016

More and more retrenchments coming for Sinkies as the Casinos are also affected.

http://www.straitstimes.com/busines...aid-off-over-30-amid-lean-spell-more-bad-debt

RWS laid off over 30 amid lean spell, more bad debt

Published Feb 17, 2016, 5:00 am SGT

Genting Singapore saw net profit slide 81 per cent to $82.94 million for the nine months to Sept 30, as revenue fell 17 per cent to $1.85 billion. Revenue from gaming fell 21 per cent to $1.38 billion for the period. The company will announce its full-year results tomorrow.

yahoo55 · Feb 18, 2016

Chart of the Day: See the worrying crash in Singapore’s exports to China

Published: 18 Feb 2016

Singapore started the year on a weak footing, after total exports to China booked a staggering 25.2% year-on-year drop in January.

Statistics from IE Singapore show that exports to China dropped mainly because of shipment pumps, which crashed by 96.9%, petrochemicals, which slipped by 24.4% and primary chemicals, which declined by 58.3%.

The weak performance in January follows an 18.7% contraction in December.

Analysts warn that continued weakness in China—Singapore’s largest export market—bodes ill for the city-state’s economic growth for the entire year.

- See more at: http://sbr.com.sg/economy/news/char...ingapore’s-exports-china#sthash.XSYU7Z09.dpuf

yahoo55 · Feb 23, 2016

Brazilian police investigating Keppel for bribery and corruption ...

https://finance.yahoo.com/news/poli...ngapores-123901143.html?nhp=1&linkId=21494961

Police say probing Petrobras contracts with Singapore's Keppel

SAO PAULO, Feb 22 (Reuters) - Brazilian police said on Monday they were looking into possible bribes paid in contracts signed by state-run oil company Petrobras and shipbuilder Sete Brasil with Singapore's Keppel Fels.

Federal police carried out a fresh wave of searches and arrests on Monday in the ongoing "Operations Car Wash" corruption investigation that started nearly two years ago.

Brazilian engineering giant Odebrecht, one of the main companies at the center of the scandal, said its offices in Sao Paulo, Rio de Janeiro and in Bahia were searched by police.

yahoo55 · Feb 24, 2016

https://vulcanpost.com/534241/list-of-companies-cutting-jobs/

Singapore Downturn? Here's The List Of Companies Cutting Jobs in Singapore Over The Past Few Months

Here’s the list of the companies laying off Singapore employees since late last year:

1. Standard Chartered
2. HSBC
3. RWS
4. Rakuten
5. Maersk
6. Yahoo Singapore
7. Barclays
8. Royal Bank of Scotland
9. Credit Suisse
10. Deutsche Bank AG
11. Goldman Sachs

Companies that have closed down all their Singapore outlets recently and retrenched their Singapore staff:

12. California Fitness
13. Comics Connection
14. M)phosis
15. Evernote Singapore

yahoo55 · Feb 24, 2016

https://sg.finance.yahoo.com/news/s...ly-unaffordable-report-220045113--sector.html

Singapore homes seriously unaffordable: report

Property Guru – Tue, Feb 23, 2016 6:00 AM SGT

Singapores market cooling measures have been effective in reducing the prices of HDB flats and private homes over the past few years, but housing costs here are still seen as too high, revealed findings published by a global report last month.

According to the 12th Annual Demographia International Housing Affordability Survey, Singapore has a seriously unaffordable rating of 5.0, no change from last years survey.

To assess housing affordability, the report uses the median multiple indicator, which is the median house price divided by gross annual median household income, to rate housing affordability across 367 cities in nine countries.

A grade of 3.0 and below is considered affordable, 3.1 to 4.0 (moderately unaffordable), 4.1 to 5.0 (seriously unaffordable) and 5.1 and over (severely unaffordable).

Sembcorp Marine posts S$535 million quarterly loss as orders shrink

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