SEMBCORP MARINE LTD
S51.SI
Sembcorp Marine - Readying For Ballast Water Convention In Sep
- As the global marine industry prepares for the implementation of the Ballast Water Convention on 8 Sep this year, there is still some uncertainty regarding the questions of suitable equipment choice for different vessel types.
- Recall that the Convention will require all ships in international trade to manage their ballast water and sediments to certain standards. In this respect, Sembcorp Marine (SMM) has examined various ballast water technologies and established collaborations with manufacturers around the world over the past two years.
- Its Green Technology Retrofit solutions segment provides treatment systems from a select group of equipment manufacturers such as Coldharbour GLD BWT.
- Looking ahead, there would likely be more vessels requiring modifications for ballast water systems, translating to ship repair/modification work for SMM. However, the big uptick, we believe, still has to come from sizeable orders relating to SMM’s fabrication business.
- Maintain BUY with S$2.01 fair value estimate with undemanding valuations.
Low Pei Han CFA
OCBC Investment
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http://www.ocbcresearch.com/
2017-06-12
OCBC Investment
SGX Stock
Analyst Report
2.010
Same
2.010
