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Hot stock: Sembcorp Marine down after profit warning

Marine logistics player Marco Polo Marine and rigbuilder Sembcorp Marine traded shots at each other overnight in an ongoing contractual dispute over a US$214.3 million rigbuilding contract.

RIGBUILDER Sembcorp Marine traded 4.6 per cent lower to S$1.965 at 9.16am on Wednesday morning. Around 1.5 million shares were traded.

Parent Sembcorp Industries was also down 2.5 per cent to S$3.17 on 1.3 million shares traded.

The activity was after Sembcorp Marine said on Tuesday evening that it is expected to make a net loss for its fourth quarter ending Dec 31, 2015, and a significant decline in net profit for 2015.

The loss is due to "the challenging operating environment and customers deferring or seeking to defer their rig orders".

Sembcorp Marine is embroiled in a legal dispute with marine logistics firm Marco Polo Marine over a terminated US$214.3 million rigbuilding contract.

Marco Polo said on Wednesday morning that it is under no obligation to pay a US$21.43 million progress payment that Sembcorp has asked for. Sembcorp's PPL Shipyard began legal action against Marco Polo on Tuesday, demanding that Marco Polo, as a guarantor, pay the progress payment due to it.