Jurong Shipyard enters into a standstill agreement with North Atlantic Drilling
Singapore, December 3, 2015: Sembcorp Marine Ltd (the “Company”) wishes to announce that a standstill agreement has been reached between North Atlantic Drilling Ltd (“NADL”) and Jurong Shipyard Pte Ltd (“JSPL”), a wholly owned subsidiary of the Company, for the delivery of the sixth generation harsh environment semi-submersible drilling rig, the West Rigel (the “Unit”), until June 2016.
During the standstill period until June 2016, NADL will continue to market the Unit for an acceptable drilling contract and JSPL will have the right to sell the Unit at an acceptable price. The Unit will remain at the JSPL yard in Singapore during this period.
In the event no employment is secured and no alternative transaction is completed when the standstill period concludes, the parties have agreed to form a Joint Asset Holding Company for joint ownership of the Unit to be owned 23% by NADL and 77% by JSPL. NADL will continue to market the Unit for the Joint Asset Holding Company for an acceptable drilling contract while JSPL will continue to market the Unit for sale.
*another one can't pay up?
With Iranian oil coming online soon, gonna just get uglier from here.
(03-12-2015, 08:02 PM)CCUV Wrote: [ -> ]Jurong Shipyard enters into a standstill agreement with North Atlantic Drilling
Singapore, December 3, 2015: Sembcorp Marine Ltd (the “Company”) wishes to announce that a standstill agreement has been reached between North Atlantic Drilling Ltd (“NADL”) and Jurong Shipyard Pte Ltd (“JSPL”), a wholly owned subsidiary of the Company, for the delivery of the sixth generation harsh environment semi-submersible drilling rig, the West Rigel (the “Unit”), until June 2016.
During the standstill period until June 2016, NADL will continue to market the Unit for an acceptable drilling contract and JSPL will have the right to sell the Unit at an acceptable price. The Unit will remain at the JSPL yard in Singapore during this period.
In the event no employment is secured and no alternative transaction is completed when the standstill period concludes, the parties have agreed to form a Joint Asset Holding Company for joint ownership of the Unit to be owned 23% by NADL and 77% by JSPL. NADL will continue to market the Unit for the Joint Asset Holding Company for an acceptable drilling contract while JSPL will continue to market the Unit for sale.
*another one can't pay up?
While discussing the SCM vs MPM conflict with my marine biz based friend, he mentioned that he sees a possibility that SCM could end up operating the rig together with MPM eventually. At least, this was why there are so many rig owners in US, whom had evolved from builders after their building boom ended....His view proved to be prescient with this announcement.
Following Equinox Offshore's default in 2013, SCM had set up a company to operate ARV3 (Aquarius Brasil) on a 5 year charter with Petrobras. I don't remember seeing it been sold, so SCM may have build up a certain level of expertise in offshore marine operations since.
From new shipyards to outright owning/operating newbuilds, the business is getting more and more asset heavy. It is only a matter of time it needs a cash call if the downturn doesn't end soon.
(03-12-2015, 10:49 PM)weijian Wrote: [ -> ] (03-12-2015, 08:02 PM)CCUV Wrote: [ -> ]Jurong Shipyard enters into a standstill agreement with North Atlantic Drilling
Singapore, December 3, 2015: Sembcorp Marine Ltd (the “Company”) wishes to announce that a standstill agreement has been reached between North Atlantic Drilling Ltd (“NADL”) and Jurong Shipyard Pte Ltd (“JSPL”), a wholly owned subsidiary of the Company, for the delivery of the sixth generation harsh environment semi-submersible drilling rig, the West Rigel (the “Unit”), until June 2016.
During the standstill period until June 2016, NADL will continue to market the Unit for an acceptable drilling contract and JSPL will have the right to sell the Unit at an acceptable price. The Unit will remain at the JSPL yard in Singapore during this period.
In the event no employment is secured and no alternative transaction is completed when the standstill period concludes, the parties have agreed to form a Joint Asset Holding Company for joint ownership of the Unit to be owned 23% by NADL and 77% by JSPL. NADL will continue to market the Unit for the Joint Asset Holding Company for an acceptable drilling contract while JSPL will continue to market the Unit for sale.
*another one can't pay up?
While discussing the SCM vs MPM conflict with my marine biz based friend, he mentioned that he sees a possibility that SCM could end up operating the rig together with MPM eventually. At least, this was why there are so many rig owners in US, whom had evolved from builders after their building boom ended....His view proved to be prescient with this announcement.
Following Equinox Offshore's default in 2013, SCM had set up a company to operate ARV3 (Aquarius Brasil) on a 5 year charter with Petrobras. I don't remember seeing it been sold, so SCM may have build up a certain level of expertise in offshore marine operations since.
From new shipyards to outright owning/operating newbuilds, the business is getting more and more asset heavy. It is only a matter of time it needs a cash call if the downturn doesn't end soon.
MPM might have problem coughing out cash for the "JV".
(03-12-2015, 11:48 PM)GPD Wrote: [ -> ]MPM might have problem coughing out cash for the "JV".
Well, I do know it has already paid 10%. In the latest announcement, notice that NADL owns 23% in the JV. The order was done in the good old times of 2012 and its % ownership is not far from the 20% down payment in those days.
(04-12-2015, 07:03 AM)weijian Wrote: [ -> ] (03-12-2015, 11:48 PM)GPD Wrote: [ -> ]MPM might have problem coughing out cash for the "JV".
Well, I do know it has already paid 10%. In the latest announcement, notice that NADL owns 23% in the JV. The order was done in the good old times of 2012 and its % ownership is not far from the 20% down payment in those days.
I think MPM wants out becos they want their deposit back and went on to publicly criticizing SMM quality of work. They have about $124mil of loan due in less than a year which they can refinance but likely to incur higher interest. Net gearing is about 1.2 based on last quarter results.
Given the businesses they are in, they might get into cashflow problem very soon.
SDRL - North Atlantic Drilling Ltd. Announces Agreement with Jurong Shipyard
Hamilton, Bermuda, December 3, 2015 - North Atlantic Drilling Ltd. ("NADL" or "the Company") announces today that a standstill agreement effective until June 2016 has been reached with Jurong Shipyard ("Jurong") for the delivery of the sixth generation harsh environment semi-submersible drilling rig, the West Rigel (the "Unit").
During the standstill period until June 2016, NADL will continue to market the Unit for an acceptable drilling contract and the Unit will remain at the Jurong Shipyard in Singapore. Jurong and NADL can also consider other commercial opportunities for the Unit during this period.
In the event no employment is secured and no alternative transaction is completed when the standstill period concludes, NADL and Jurong have agreed to form a Joint Asset Holding Company for joint ownership of the Unit to be owned 23% by NADL and 77% by Jurong. NADL will continue to market the Unit for the Joint Asset Holding Company.
This information is subject of the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.
http://www.seadrill.com/investor-relatio...970997.xml
Seems more gloomy ahead for Semb Marine
Just to check, among the O&G related counters, semb marine might be the one closest to it's fair value currently?
It has already issued a profit guidance, with the gloomy factors priced in. Kep corp has yet to issue any..
So, semb marine's downside seems limited for now in my view
(08-12-2015, 01:42 PM)alex Wrote: [ -> ]Just to check, among the O&G related counters, semb marine might be the one closest to it's fair value currently?
It has already issued a profit guidance, with the gloomy factors priced in. Kep corp has yet to issue any..
So, semb marine's downside seems limited for now in my view
I'm waiting sembmar at $1
I hope it will get to $1 too.