Seatrium Limited (formerly SembCorp Marine and KOM)

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#81
(08-11-2014, 08:45 AM)weijian Wrote: Transocean has been a significant customer to the Sporean rig builders, with Keppel FELS securing 5 jackups and Jurong Shipyard securing 2 drillships orders from them in the last 1 year. This includes options for another 5 jackups and 3 drillships respectively.

Can someone explain to me what's the meaning about "option for another 5 jackups and 3 drill ships"?

As in Transocean has a choice to buy 5 jackups and 3 drillships and Keppel cannot reject them at all as an option has been granted?
If this, is the case, keppel like some big shot ....

I mean, seriously, who cares about this "option", it's as good as nothing...i can go to semb marine to do it..

Maybe im not understanding the value of this "option" properly? Can enlighten?

Vested in Semb corp, Sembmarine and Keppel and sleeping well at night
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#82
(20-11-2014, 05:37 PM)Stephen Wrote:
(08-11-2014, 08:45 AM)weijian Wrote: Transocean has been a significant customer to the Sporean rig builders, with Keppel FELS securing 5 jackups and Jurong Shipyard securing 2 drillships orders from them in the last 1 year. This includes options for another 5 jackups and 3 drillships respectively.

Can someone explain to me what's the meaning about "option for another 5 jackups and 3 drill ships"?

As in Transocean has a choice to buy 5 jackups and 3 drillships and Keppel cannot reject them at all as an option has been granted?
If this, is the case, keppel like some big shot ....

I mean, seriously, who cares about this "option", it's as good as nothing...i can go to semb marine to do it..

Maybe im not understanding the value of this "option" properly? Can enlighten?

Vested in Semb corp, Sembmarine and Keppel and sleeping well at night

Option... means that TransOcean can order them exclusively if they want to...

Options in this case usually refer to bull mkt situation when yard capacity are highly priced... not available...

However in the upcoming lull, TransOcean can easily let them lapse. Inoption theory terms TransOcean long a call to build from Kep and Semb.

Buddy... if u look at the tsunami brewing in global O&G, I think Kep and Semb will be standing... however how much bullet holes they will take will be dependent on how long the tsunami lasts...

In life sometimes it good not to be iron teeth. In investments, if you are long funds, better to buy high sell higher.

Odd Lots Vested
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#83
(20-11-2014, 06:33 PM)greengiraffe Wrote:
(20-11-2014, 05:37 PM)Stephen Wrote: [quote='weijian' pid='99412' dateline='1415407522']
Transocean has been a significant customer to the Sporean rig builders, with Keppel FELS securing 5 jackups and Jurong Shipyard securing 2 drillships orders from them in the last 1 year. This includes options for another 5 jackups and 3 drillships respectively.

Can someone explain to me what's the meaning about "option for another 5 jackups and 3 drill ships"?

Option is a contractual obligation to the awarded Supplier when they participant in the tender.

The award party normally will call for a tender with some options. The objective is to bulk buying at a cheaper rate. Lock in the price contractually and no obligation to buy(exercise option) at this instant.
失信于民,何以取信于天下...
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#84
(20-11-2014, 07:49 PM)VIChris Wrote:
(20-11-2014, 06:33 PM)greengiraffe Wrote:
(20-11-2014, 05:37 PM)Stephen Wrote: [quote='weijian' pid='99412' dateline='1415407522']
Transocean has been a significant customer to the Sporean rig builders, with Keppel FELS securing 5 jackups and Jurong Shipyard securing 2 drillships orders from them in the last 1 year. This includes options for another 5 jackups and 3 drillships respectively.

Can someone explain to me what's the meaning about "option for another 5 jackups and 3 drill ships"?

Option is a contractual obligation to the awarded Supplier when they participant in the tender.

The award party normally will call for a tender with some options. The objective is to bulk buying at a cheaper rate. Lock in the price contractually and no obligation to buy(exercise option) at this instant.

Ah thanks Vchris..locking in price makes sense to me.

GG, yeah hopefully, i can sleep as well next year! Keeping fingers cross that the korean and china yards will be decimated and only the strong will survive
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#85
(20-11-2014, 08:45 PM)Stephen Wrote:
(20-11-2014, 07:49 PM)VIChris Wrote:
(20-11-2014, 06:33 PM)greengiraffe Wrote:
(20-11-2014, 05:37 PM)Stephen Wrote: [quote='weijian' pid='99412' dateline='1415407522']
Transocean has been a significant customer to the Sporean rig builders, with Keppel FELS securing 5 jackups and Jurong Shipyard securing 2 drillships orders from them in the last 1 year. This includes options for another 5 jackups and 3 drillships respectively.

Can someone explain to me what's the meaning about "option for another 5 jackups and 3 drill ships"?

Option is a contractual obligation to the awarded Supplier when they participant in the tender.

The award party normally will call for a tender with some options. The objective is to bulk buying at a cheaper rate. Lock in the price contractually and no obligation to buy(exercise option) at this instant.

Ah thanks Vchris..locking in price makes sense to me.

GG, yeah hopefully, i can sleep as well next year! Keeping fingers cross that the korean and china yards will be decimated and only the strong will survive

u have what i have also
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#86
Wondering if there is any adverse impact on Singapore O&G plays...

Brazil tallies over US$9b in suspicious Petrobras deals: report
21 Nov5:50 AM
Brasilia

BRAZIL'S finance ministry has uncovered more than US$9 billion in suspicious transactions involving Petrobras, the state oil giant at the centre of a massive corruption scandal, a newspaper reported on Wednesday.

The finance ministry audit has identified suspicious deposits and withdrawals totalling 23.7 billion reais (S$12 billion) between 2011 and 2014.

The paper said the transactions involved thousands of people and companies who did business with Petrobras, Brazil's biggest company, over that period.

According to the ministry auditor, COAF, cash transactions alone totalled 350.6 million, Globo said.

The auditor's office told AFP only its chairman could confirm the sums, adding he was away and unable to comment.

The report came as investigators interview dozens of suspects, including two former Petrobras directors and senior executives of some of Brazil's leading companies, in connection with a multibillion corruption scandal dubbed "Operation Car Wash".

Investigators believe as much as US$4 billion were allegedly paid to members of the ruling Workers Party and other politicians between 2004 and 2012 to buy influence with cash creamed off inflated Petrobras contracts.

The head of Brazil's accounts watchdog, Augusto Nardes, estimated on Monday that the kickbacks paid via inflated contracts could have totalled more than US$1.16 billion. "Based on the figures we have it's certainly the biggest scandal in Brazilian history," Mr Nardes told Globo.

Some of those arrested have offered to cooperate with the investigation and also pay back in some cases tens of millions of dollars as they seek a plea bargain. AFP
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#87
Commodities cycles are mega cycles that can last 20-30 years. It's tricky enough to time your entry into commodities miners/producers/drillers. It's even more tricky to invest in their suppliers and vendors. Just by looking at the company's financials for the past 5-10 years is not enough. You need to look at the commodity trends for the past 20-30 years.

If one is not that familiar with the oil rig industry like GG, it's better to avoid Semb Marine and Kepcorp for the benefit of doubt. Why forsake the whole forest for 2 trees? You don't bet long on oil when the OPEC producing countries are engaging the US oil producers in a price war. You don't hold USD cash when the Fed is printing more money

Just my personal opinion.
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#88
Hi Brother,

Thanks for your compliment. I m only commenting based on rear mirror vision... My crystal ball forward is unclear as well.

I just happened to be a junior analyst when I started off... unfortunately, I missed the upcycle totally as well. I still remembering writing to the BT forum urging Lim Chee Onn to breakup Kepcorp's conglomerate business in early 2000s.

Then again, I missed the confusing forest altogether till now...

Don't let me convinced and confused you.

However, you did point out good points... when it is a big trend especially deflationary ones - its better to steer clear than to fight. The smart $ would have been shorted long time back and already reaping good profits.

Anyway, downtrend can present bear traps like short and quick rebounds and hence all the more we must be cautious.

Odd Lots Vested
GG

(23-11-2014, 04:43 PM)Tiggerbee Wrote: Commodities cycles are mega cycles that can last 20-30 years. It's tricky enough to time your entry into commodities miners/producers/drillers. It's even more tricky to invest in their suppliers and vendors. Just by looking at the company's financials for the past 5-10 years is not enough. You need to look at the commodity trends for the past 20-30 years.

If one is not that familiar with the oil rig industry like GG, it's better to avoid Semb Marine and Kepcorp for the benefit of doubt. Why forsake the whole forest for 2 trees? You don't bet long on oil when the OPEC producing countries are engaging the US oil producers in a price war. You don't hold USD cash when the Fed is printing more money

Just my personal opinion.
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#89
^^ Wow were you one of them that persuaded him to unload SPC which he continued to feel bitter over? Big Grin
Before you speak, listen. Before you write, think. Before you spend, earn. Before you invest, investigate. Before you criticize, wait. Before you pray, forgive. Before you quit, try. Before you retire, save. Before you die, give. –William A. Ward

Think Asset-Business-Structure (ABS)
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#90
The news is more critical to SembMarine than Keppel, thus I post the article here. It will ease the concern of payment...

(not vested in both SembMarine and Keppel)

Key customer of Keppel, SembMarine gets credit line, says Credit Suisse

SINGAPORE (Jan 19): Concerns about Keppel Corp ( Financial Dashboard) and Sembcorp Marine ( Financial Dashboard) not getting paid on time by a key customer in Brazil should ease following a report that Sete Brasil has secured long-term financing to pay for the construction of at least eight rigs, according to Credit Suisse.

Sete Brasil, a joint venture between Petrobras and the Brazilian government set up in 2010 to spearhead the construction of 29 locally-built drilling rigs, will reportedly sign an agreement with Brazilian Development Bank (BNDES) for a US$5.2-billion ($6.8-billion) facility in the next few weeks, Credit Suisse analysts Gerald Wong and Hwang Shih Haur said in a note, citing Brasil Energia.

The money will be used for building eight of the 29 rigs that Sete Brasil has ordered.

The eight rigs include three drill ships being built by SembMarine and two semi-submersibles by Keppel.
...
http://www.theedgemarkets.com/sg/article...dit-suisse
“夏则资皮,冬则资纱,旱则资船,水则资车” - 范蠡
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