To The Moon

$SEMBCORP MARINE LTD(S51.SI)$ posted a net order book of S$7.1 billion as at the end of its third quarter.

About S$6.7 billion of its order book comprises new contracts acquired in the year to date, including an engineering, procurement and construction contract worth about S$4.3 billion to build an oil tanker for Brazil-owned Petrobras for delivery in FY2026.

The marine and offshore engineering group expects to complete three of its 12 ongoing projects by the end of the year, while its remaining nine projects are scheduled for delivery between 2023 and 2026.

As at end-September 2022, the group has two renewable solutions projects under execution; three process solutions projects; four gas solutions; two ocean living solutions projects; and one advanced drilling rig solutions project.

Sembmarine said in a business update on Tuesday (Nov 15) that it continues to experience the “residual effects” of Covid-19 measures related to skilled labour required for delayed projects and the accompanying costs. Earnings from completed projects and new orders were not sufficient to offset these costs, the group said.

As such, the group is anticipating losses for H2 FY2022 to be similar to those incurred in H1 of the same financial year.

The share price has been trending downward 📉this morning might be due to the above news.