SembMarine: Not aware of reasons for share price jump

Singapore shipyards in Tuas areaSingapore shipyards in Tuas area

Sembcorp Marine told SGX Thursday it wasn’t aware of any reason not previously announced to explain the jump in its share price Wednesday.

Shares of SembMarine ended Wednesday up 7.86 percent at S$1.51, off the day’s high of S$1.54.

SGX had issued a query over trading activity to SembMarine Wednesday.

“The company, in its ordinary course of business, negotiates contracts with its customers. There is no certainty that any transaction will materialize,” the rigbuilder said in a filing to SGX. “The company will, in compliance with the listing rules, issue announcements if and when there are material contracts secured.”

SembMarine added that various recent media reports and ratings updates by stock brokerages might impact its share price, although it didn’t cite any specific item.

In June, Sembcorp Industries agreed to provide Sembcorp Marine with a five-year subordinated loan of S$2 billion to strengthen the rig builder’s financial position amid an on-going severe global downturn in the offshore and marine industry.

Earlier this month, the company said it lodged a suspicious transaction report with the Commercial Affairs Department of the Singapore Police Force over the activities of Martin Cheah Kok Choon during the time he was employed as president of the company’s Brazilian subsidiary. That was in response to Brazilian authorities’ investigation into Cheah,  SembMarine said.

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