Seatrium Limited (formerly SembCorp Marine and KOM)

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Besides the North Atlantic high spec rig been "marketed" for sale together (~77% owned by SCM), 3 more rigs finally announced cancellation. Together with the 2 from Perisai in Aug, this brings to a total of 6 rigs that SCM holds on its inventory (Oro Negro-3, Perisai-2 and MPM-1)

Sembmarine cancels three Oro Negro rigs (4/10/2017):
https://fairplay.ihs.com/commerce/articl...negro-rigs

Singapore, 31 August 2017: Sembcorp Marine Ltd (the “Company”) wishes to announce that its wholly-owned subsidiary, PPL Shipyard Pte Ltd, has terminated two contracts with the subsidiaries of Perisai Petroleum Teknologi Bhd, for the construction of two jack-up rigs following the expiry of the existing Deferment Agreements.
http://www.sembmarine.com/stock-exchange...d-pte-ltd/
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Does this mean that these 6 rigs have been constructed, and are now sitting on SCM's yards, waiting to be sold?
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Oro Negro (3rigs) and Perisai (2 rigs) have been mentioned in previously be technically accepted (or 98% completed), while MPM (1 rig) was rejected due to "too many cracks" but disputed by SCM (contract terminated and now under lawsuit i believe)...So all 6 rigs should just to be activated from some sort of cold stack condition, to start drilling.

Based on AR15, a 280mil SGD impairment was made for these 6 rigs (~1.25bil USD contract value) and no further impairment was made for FY16, although all profit recognition was reversed in FY15 when the rigs were delayed. Doesn't take a genius to figure out there will be another impairment coming up in FY17.

SCM had previously took over and operated a ARV3 (accommodation and repair vessel at 227mil) when its prior owner Equinox Offshore Brazil defaulted but it already had a 5year charter with Petrobras.
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Rigs sold...

http://infopub.sgx.com/FileOpen/SCM%20Pr...eID=473339
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The sale is decent with SMM getting 500 mil cash upfront.

However, SMM has to be the "banker" for this scheme where they are giving a 5 year loan amount of US$800 mil to Borr Drilling at "market rates". So there will be a hefty trade receivable sitting in its balance sheet for 5 years.
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SCM financing Borr Drilling US$800milos?

Borr Drilling also brought over the Transocean's rigs at US$1.2billions before this deal... also funded by KepCorp?

:O
1) Try NOT to LOSE money!
2) Do NOT SELL in BEAR, BUY-BUY-BUY! invest in managements/companies that does the same!
3) CASH in hand is KING in BEAR! 
4) In BULL, SELL-SELL-SELL! 
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(08-10-2017, 12:46 PM)brattzz Wrote: SCM financing Borr Drilling US$800milos?

Borr Drilling also brought over the Transocean's rigs at US$1.2billions before this deal... also funded by KepCorp?

:O


Keppel FELs seem to be in a "slightly better position of strength" since Transocean's orders were delayed, compared to SCM's completed-but-not-delivered rigs. Borr took over the contracts at quite almost unchanged contract values wrt to Keppel FELs and seems like Transocean is taking the 20% downpayment hit themselves.

keppel fels announcement: http://www.kepcorp.com/en/news_item.aspx?sid=6986
Borr and Transocean's deal: https://www.bassoe.no/investors-throwing...g/news/38/
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so what does Borr Drilling (ex-seadrill) sees in the current low oil price, end of deep sea oil production environment? :O
good timing to pick up cheap rigs at discount? or excellent financing schemes?

buying at the bottom izzit? Big Grin
1) Try NOT to LOSE money!
2) Do NOT SELL in BEAR, BUY-BUY-BUY! invest in managements/companies that does the same!
3) CASH in hand is KING in BEAR! 
4) In BULL, SELL-SELL-SELL! 
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The results are probably non-event but will be interesting to see what SCI review due next week will say... I'm of the view that Keppel might takeover SMM
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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(01-11-2017, 05:19 PM)specuvestor Wrote: The results are probably non-event but will be interesting to see what SCI review due next week will say... I'm of the view that Keppel might takeover SMM

I think the best for keppel is to spin-off the O&G arm and merge with Sembmar. It will sink even faster if it were to absorb sembmar.  Big Grin
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