Sembcorp Marine lands new contracts valued at S$400 million

Sembcorp Marine obtained new contracts valued at S$400 million from new and repeat customers including the offshore gas and wind farm developments and cruise ship upgrades, the company said in a filing to SGX Monday.

“Despite the challenging market conditions, we have been steadfastly pursuing the available pockets of opportunities. I am very pleased that our teams have translated several of these opportunities into new contracts,” Weng Sun, SembMarine’s president and CEO, said in the statement.

The projects aren’t expected to materially affect earnings per share for the current fiscal year, SembMarine said.

Conversion project

Sembcorp Marine Rigs & Floaters signed deals with joint ventures of Shapoorji Pallonji Oil and Gas and Bumi Armada to convert a very large crude carrier (VLCC) into a floating production, storage and offloading (FPSO) unit to be deployed on India’s east coast, the filing said.

The VLCC will produce up to 90,000 barrels of oil per day and have a storage facility for 1.3 million barrels, SembMarine said.

The project, which is scheduled for delivery in 2021’s second half, includes hull repairs and upgrading and fabricating at least three topside modules to be installed on the vessel, the filing said.

Wind farm

Among the projects, Sembcorp Marine Offshore Platforms landed a contract from Jan De Nul N.V. to fabricate 15 jacket foundations for the Formosa 2 Wind Farm, the filing said.

The 376 megawatt Formosa 2, located 4 kilometers offshore Taiwan in the Taiwan Strait, will be Taiwan’s largest offshore wind farm, and is expected to generate enough electricity for more than 380,000 households when operation begins in late 2021, SembMarine said.

“The partnership with Jan De Nul on Formosa 2 represents our first exploit in the highly competitive Taiwanese offshore wind sector,” said Samuel Wong, Sembcorp Marine’s head of offshore platforms. “This is an important opportunity to extend our engineering solutions into the Asian offshore renewable energy markets.”

The jacket foundations are scheduled to be delivered by December 2020, the filing said.

Cruise ship refit

Sembcorp Marine Repairs & Upgrades obtained a project to refitting the Asuka II, Japan’s largest cruise ship, for NYK Cruises, the filing said.

The project, which will be executed over 45 days, includes installing a sulpher oxide scrubber unit to comply with new environmental regulations taking effect next year, SembMarine said.

In addition, SembMarine said it obtained three new gas projects.

Gas projects

This included converting an LNG tanker into a floating storage and regasification unit (FSRU) for a joint venture between Mitusi O.S.K. Lines and Karpower International, the filing said.

The second gas project is converting NYK Line’s former gas carrier LNG Flora into a floating storage unit for Gasfin development, while the third project was to upgrade the FSRU BW Magna for BW LNG, the filing said.

Delivery for the three pojects is expected between the end of this year and February 2020, SembMarine said.

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