Sembcorp Marine - OCBC Investment 2020-07-16: Impacted By Covid-19 

SEMBCORP MARINE LTD (SGX:S51) | SGinvestors.io SEMBCORP MARINE LTD (SGX:S51)

Sembcorp Marine - Impacted By Covid-19 

  • Deeper into the red in 1H20.
  • Sembcorp Marine’s CEO takes 50% pay cut; senior management. 15%.
  • Expect losses in foreseeable quarters.



Price action since last report



Sembcorp Marine sinks further into the red in 1H20

  • In Sembcorp Marine’s recent 1H20 results release, the group reported a 41% y-o-y drop in revenue to S$906m and suffered a net loss of S$192m compared to a net loss of S$6.8m in 1H19. This was mainly due to Covid-19 delaying execution of projects, higher costs recognized for rigs and floaters and specialized shipbuilding projects, and lower margin recognition from offshore platforms. This was partially offset by profit from repairs and upgrades and government grants related to Covid-19.
  • Sembcorp Marine’s CEO has volunteered a 50% pay cut, while senior management will take a 15% salary reduction, middle management 10% and rest of the employees a 5% cut. Those earning less than $1.8k a month will not have any salary reduction.


Losses to continue into foreseeable quarters






OCBC Research Team OCBC Investment Research | https://www.iocbc.com/ 2020-07-16
SGX Stock Analyst Report HOLD UPGRADE SELL 0.47 DOWN 0.550



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