(18-11-2015, 04:41 PM)cfa Wrote: [ -> ]Find fault to cancel order when market turns bad .
Rather surprised SMM took this order from a very small and unproven player .
But if SMM has a case to fight , Marco Polo may not have the financial muscle to face the legal suit .
Very good observations... very likely MP buying time to try and salvage whatever they could since it is likely that they cannot survive the winter... they take delivery they can find banker and face no revenue...
They find fault, fight the case may still stand slim chance to get off the hook...
In any case, that's the whole issue about trying to meet budgets and target... take on smelly legs, downturn come the people who got off the hooks are likely the super salesmen who have probably gone away with their fat bonuses...
Lose-lose?
(18-11-2015, 05:39 PM)greengiraffe Wrote: [ -> ] (18-11-2015, 04:41 PM)cfa Wrote: [ -> ]Find fault to cancel order when market turns bad .
Rather surprised SMM took this order from a very small and unproven player .
But if SMM has a case to fight , Marco Polo may not have the financial muscle to face the legal suit .
Very good observations... very likely MP buying time to try and salvage whatever they could since it is likely that they cannot survive the winter... they take delivery they can find banker and face no revenue...
They find fault, fight the case may still stand slim chance to get off the hook...
In any case, that's the whole issue about trying to meet budgets and target... take on smelly legs, downturn come the people who got off the hooks are likely the super salesmen who have probably gone away with their fat bonuses...
Lose-lose?
The value of this rig is far more than the shareholder fund of MP , was SMM so desperate for this order ?
(19-11-2015, 02:25 PM)snapsnap Wrote: [ -> ]Nov 19, 2015 - SembMarine and Marco Polo Marine in spat over termination of rig contract.
http://sdb.theedgemarkets.com/2015/SMR/S...uxvd97.pdf
it seems something is brewing !
If oil price is more than USD100.00 , even there are more cracks , MP will still overlook it and may even push for early delivery !
(19-11-2015, 03:24 PM)cfa Wrote: [ -> ] (19-11-2015, 02:25 PM)snapsnap Wrote: [ -> ]Nov 19, 2015 - SembMarine and Marco Polo Marine in spat over termination of rig contract.
http://sdb.theedgemarkets.com/2015/SMR/S...uxvd97.pdf
it seems something is brewing !
If oil price is more than USD100.00 , even there are more cracks , MP will still overlook it and may even push for early delivery !
Hehe...everybody can tell vivian hsu's hubby trying to play dirty....
(07-02-2012, 06:12 PM)Musicwhiz Wrote: [ -> ]Surpassing $5.00. (Not Vested)
Business Times - 07 Feb 2012
SembMarine bags US$792.5m contract in Brazil
Deal to build drillship paves way for more from Sete Brasil; opens wider market for SembMarine
By LYNN KAN
SEMBCORP Marine bagged a US$792.5 million contract from Sete Brasil to build a drillship, setting the stage for more units to come from the Petrobras-backed rig-owner.
Said Wong Weng Sun, president and CEO of SembMarine: 'We believe this order will be the first of many orders in Sete Brasil's ambitious drillship expansion programme to develop the giant Brazilian pre-oil fields.'
Market talk has had it that Brazilian state oil company Petrobras has already approved a 21-rig tender to Sete Brasil. Therefore, deepwater rigs and drillship construction contracts are expected to be awarded in the coming months.
The construction will be based on Jurong Shipyard's proprietary 'Jurong Espadon' drillship design. Mr Wong said the order represents 'the first drillship that our group is building for Brazil'.
It will also be the first project to be built at the Singaporean rigbuilder's new Brazilian yard Estaleiro Jurong Aracruz.
The drillship will be delivered no later than the second quarter of 2015.
Analysts foresee this drillship unit heralds more similar orders to come.
'We believe this is in addition to the six drillship bids that (SembMarine) submitted in 2011,' said CIMB analyst Lim Siew Khee.
The contract 'positions (SembMarine) very well to penetrate beyond its earlier target of 6-7 drillships ... since Estaleiro Atlantico Sul - a local yard - is behind schedule in delivery.
SembMarine may potentially take over a portion of its seven-drillship contract', said Citi analysts in a report.
SembMarine's drillship contract value is believed to be about 30 per cent higher than those built by Samsung Heavy Industries, and would address the higher costs of building in Brazil, said Jason Saw of DMG & Partners.
Added Kay Lim, head of securities research at DNB: 'We expect the higher pricing to mitigate the higher construction risks in Brazil and expect the project to be profitable.'
Sete Brasil's approval of SembMarine's design is also a 'breakaway' from the Korean shipbuilders, 'whose designs have dominated market share over the past cycle', noted Citi analysts.
'Acceptance of this rig will also improve SembMarine's marketability to international drillers and widen its market,' said Citi.
With more clarity on Petrobras-related drillship orders, CIMB thinks SembMarine's order wins will be in the range of US$8 billion rather than the US$6 billion it projected earlier.
SembMarine jumped 11 cents in yesterday's trading session to end at $4.96.
--------------------
What an irony, 4 years later, the sudden plunge in oil price has the company testing $2 soon. Such is the nature of the stock market and its cyclical nature for some companies
(18-11-2015, 05:39 PM)greengiraffe Wrote: [ -> ] (18-11-2015, 04:41 PM)cfa Wrote: [ -> ]Find fault to cancel order when market turns bad .
Rather surprised SMM took this order from a very small and unproven player .
But if SMM has a case to fight , Marco Polo may not have the financial muscle to face the legal suit .
Very good observations... very likely MP buying time to try and salvage whatever they could since it is likely that they cannot survive the winter... they take delivery they can find banker and face no revenue...
They find fault, fight the case may still stand slim chance to get off the hook...
In any case, that's the whole issue about trying to meet budgets and target... take on smelly legs, downturn come the people who got off the hooks are likely the super salesmen who have probably gone away with their fat bonuses...
Lose-lose?
http://www.valuebuddies.com/thread-520-page-3.html
Sembmarine is caught between the rock and hard surface... lose-lose due to global industry turbulence...
If court rules in SMM favour, MPM bankrupt unless some banks willing to loan?