ValueBuddies.com : Value Investing Forum - Singapore, Hong Kong, U.S.

Full Version: SembCorp Industries
You're currently viewing a stripped down version of our content. View the full version with proper formatting.
Pages: 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25
Sembcorp Appointed by PUB to Build Singapore's Largest Floating Solar Farm on Tengeh Reservoir
* Sembcorp surges ahead with innovative green energy and sustainable environmental solutions to support a renewable future

Sembcorp Industries (Sembcorp) announces that it has, through its wholly-owned subsidiary Sembcorp Solar Singapore, been named as the preferred bidder to build a 60 megawatt-peak (MWp) floating solar photovoltaic (PV) system on Tengeh Reservoir. When completed in 2021, it will be one of the world’s largest single floating solar PV systems.

With this project, Sembcorp will be one of the largest renewable energy players in Singapore with approximately 240MWp of solar capacity in the country. Moving ahead with the development of a floating solar farm underscores Sembcorp’s commitment to support Singapore’s move towards achieving its new solar target of at least 2 gigawatt-peak (GWp) by 2030.

Sembcorp Solar Singapore will proceed to execute the requisite project agreements, and work towards satisfaction of the conditions precedents set out in PUB’s request for proposal.
(04-05-2017, 12:44 PM)Ben Wrote: [ -> ]Just purely my personal opinion. This new guy from Temasek, taking over from veteran Tan KF, is not a young chap. That means he will not be helming SCI for too long. He is probably here for a specific task, restructing/strategic review, they are more or less the same, just different terms. So I am expecting some rather drastic changes, and not business as usual going forward. Once these objectives are achieved, someone younger will take over and take SCI over the next decade, just like Tan KF.

Interesting time to watch the development.

LEADERSHIP SUCCESSION AT SEMBCORP INDUSTRIES - Wong Kim Yin to succeed Neil McGregor as Group President & CEO 

Singapore, March 16, 2020 – Sembcorp Industries is pleased to announce its leadership succession. Neil McGregor, who will turn 65 this year, will be retiring as Group President & CEO on June 30, 2020. He will be succeeded by Wong Kim Yin, 50, with effect from July 1, 2020. Mr McGregor will remain as advisor until December 31, 2020.

https://links.sgx.com/FileOpen/Leadershi...eID=600736
11 May 2020 Semcorp PUB sign 25-year Power Purchase Agreement (PPA)
(click for details)


60 megawatt-peak (MWp) as part of PUB vision of 2GWp by 2030
What: floating solar PV system
where: Tengeh Reservoir
Extend: design, build, own and operate

Stay home and stay safe, everyone.
18 May 2020 Sembcorp outlook on FY2020
(click for details)


Extract:
"The COVID-19 pandemic is severely impacting global economic activity, with the International Monetary Fund (IMF) expecting the pandemic to cause a global recession in 2020. In addition, oil prices have also seen a sharp decline. Notwithstanding the adverse business conditions, the Group expects to maintain positive operating cash flow in 2020 underpinned by its long-term contracts and diversified portfolio of businesses."

Stay home and stay safe, everyone.
this stock seems to be in downward trend since a few years ago. The oil rig business has very big impact on them. What's everyone's opinion going forward?
4 June 2020 Halted SembCorp & SembMarine

https://links.sgx.com/1.0.0/corporate-an...fca6bf466c
https://links.sgx.com/1.0.0/corporate-an...5ed58b39b5

Stay home and stay safe, valuebuddies.
8 June 2020 5 SembMarine 5 for 1 rights and demerger
Both SembMarine and Sembcorp requested halt to be lifted today at 8:30am
https://links.sgx.com/1.0.0/corporate-an...b24d9a5939
https://links.sgx.com/1.0.0/corporate-an...db3738fb65

A) Recaptialisation of SembMarine
a. 5 rights shares for every 1 existing SembMarine share at S$0.20 per rights share
b. SembMarine last closed $0.74 on 3 Jun 2020
c. Gross proceed $2.1b ($1.5b is to repay Sembcorp, $0.6b is for working capital and general corporate purposes, including debt servicing)

B) Demerger of SembMarine from SembCorp
a. Distribution in specie of SembMarine shares held by SembCorp post completion of rights issue
b. Each SembCorp shareholders would receive between 427 and 491 SembMarine shares for every 100 SembCorp shares owned
c. After demerger, SembCorp get rid of the $1.5b subordinated credit facility granted to SembMarine in Jun 2019
(click for details)

Stay home and stay safe, valuebuddies.
Interesting turn of events. SembCorp industries (SCI) shot up by 40% today!

In summary, hopefully my understanding is not wrong, it is interesting because SCI has 'volunteered' to convert its subordinated loan of 1.5b extended to sembMarine into new shares of SembMarine. So it goes something like, SCI feels like it doesnt want to collect back $1.5b from SembMarine, so it graciously ask for shares instead.

Imagine, a situation when a bank cant collect back its loans, and is repaid in the form of shares (are the shares worthless or not, the investor has to decide), then the stockmarket happily cheers on for the bank with a 40% rise

Very interesting! I would suggest that existing shareholders of SCI should take the chance to exit. But these days, the market is a bit siao siao, its shares can of course shoot higher. As of now, it is trading at 2.16 (up from 1.53 in the previous close)

Punting on SCI doesnt quite make sense, SembMarine perhaps a better speculation

As for SembMarine, i know little about its business, i would just say that it gets better capitalised but existing shareholders are more or less 'wiped out' with the huge dilution
I believe the situation for SCI-SCM is not really similar to the case of a bank loaning its customers. SCM is a child of SCI and the current suite of corporate actions suggest that there will be a new daddy for SCM soon. Maybe this is the premium that is been unlocked when a problematic child gets weaned off you, and your balance sheet and earnings numbers become better and more focused, together with a more certain future. Looking at how SCM is performing in parellel, maybe there is some arbitrage on going? Anyways, there are probably thousands of other reasons that one can think of to try to explain price movements.

Existing SCM shareholders wouldn't be wiped out with the huge dilution if they subscribe to the rights issue. On the contrary, if they think Sembmarine is cheap, they may even buy more or subscribe for additional rights for an increased stake proportionally.
The underlying white Knight is temasek government support which rightly has to be present given that almost 100billion cake has been distributed including the job support scheme which also supported foreign companies (whether they are profitable or not) across the board
Pages: 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25