Sembcorp Marine Interim Business Update for 3Q & 9M 2020
Production has resumed and tender activities for new projects increased in 3Q 2020.
Singapore, 11 November 2020: Sembcorp Marine is today issuing its interim Business Update for the third quarter 2020 and nine months ended 30 September 2020, following the adoption of semi-annual reporting of its results with effect from FY 2020.
Impact of COVID-19 Pandemic and Low Oil Prices
2. Following the relaxation of COVID-19 measures in Singapore since June 2020, our Singapore yards began to resume production activities in early July 2020. Our operating yard workforce (including sub-contractors) have now increased to almost full workforce levels.
3. With oil prices recovering since the March collapse, there have been active reviews of deferred projects by the oil companies. New orders visibility has improved as a result and the Group is increasingly active in bidding for new projects and discussing resumption of delayed projects.
4. The Group continued to incur losses for 3Q 2020, with low overall business volume and execution delays.
5. The Group is actively tendering for more than 10 projects, especially in the greener energy market segments such as Renewable Energy and Gas Solutions. A similar number of tenders are also in progress for the Process Solutions segment (such as FPSOs, FSOs and FPUs).
6. Sembcorp Marine is currently executing a total of $1.78 billion of significant projects, as listed below.
7. In addition, our Repairs & Upgrades business is undertaking $0.33 billion of ongoing jobs and new orders secured during the quarter.
8. In consultation with our customers, delivery dates for most of our existing projects have been rescheduled by between 3 to 12 months. To-date, there has been no cancellation of any of our existing projects.
9. The Group delivered the Tangguh LNG modules in June 2020 and the Offshore Windfarm Jacket foundations for the Hornsea 2 project in August 2020.
10. The successful completion of the Group’s $2.1 billion rights issue has strengthened our liquidity position and balance sheet.
11. Sembcorp Marine is now focused on executing our projects and securing new orders.
12. We will work to manage our costs and liquidity prudently to ensure we are able to sustain our operations and ride through the severe industry downturn and COVID-19 pandemic.
13. Sembcorp Marine expects losses to continue into the fourth quarter.
For more information, please contact:
Ms Lisa Lee
Head of Investor Relations
DID: +65 6971 7042
Mr Lin Daoyi
Manager, Corporate Communications
DID: +65 6971 7040
For the PDF version of this announcement, please click here.