Homepage
PR Newswire
02-11-2016, 01:51 AM
(30-10-2016, 05:03 PM)BlueKelah Wrote: recent SOTP assessment by DBS on 28/9/2016 a month ago when share price around $2.50.
Sembcorp Industries buy TP $3.10 DBS
Not much change since then. Coal prices have gone through the roof recent quarters so india utilities might get hit in next few quarters. If Singapore goes into recession it might hit the utilities side as well. Sembcorp Marine will likely have to be CUT OFF or consolidated somewhere else to stem the bleeding.
SCI had already secured long term coal supply for TPCIL, 10mil tonnes over 10yrs signed in feb2012, 40mil tonnes over 20yrs signed in Jun2013. At time of announcing the partial acquisition of SGPL In feb2014, it also mentioned having been allocated local mining rights by the Indian authorities. I reckon substantial supply of its coal fuel should therefore be hedged.