Brokers' take

Sembcorp Marine | Sell

Dec 2 close: S$1.97

Target price: S$1.75

Maybank Kim Eng Research, Dec 2

Q4 FY15 is not yet over, but Sembcorp Marine is already sure that it will make a loss. Other than weaker revenue recognition, we suspect that it may be required to set aside significant provisions for the Marco Polo jackup rig that the latter seeks to terminate. We estimate that S$35 million of Ebit has been recognised. But the actual provision may be higher than this as it may also need to provide for

The auditors may push for maximum provision as there may not be an easily assessable market value for the r…