Brokers' take
Sembcorp Marine | Buy Oct 9 close: S$1.815 Target price: S$1.98 OCBC Investment Research, Oct 9
Sembcorp Marine announced on Friday that PPL Shipyard has signed agreements for the sale of nine Pacific Class 400 jackup drilling rigs to Borr Drilling for a total of about US$1.3 billion (about S$1.77 billion or US$144 million per rig) plus a market-based fee calculated based on an uplift in value of the rigs sold.
Borr will take delivery of the nine rigs progressively over a 14-month period from Q4 2017 to Q1 2019, and will make an upfront down payment of about US$500 million; the balance US$800 million will be paid at any time within five years from the respective delivery dates of the rigs. The nine rigs include all six rigs from contracts PPL had earlier terminated with its original customers, and three rigs presently under various stages of construction completion.
KEYWORDS IN THIS ARTICLE
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Companies & Markets
UBS weighs synthetic risk transfer amid capital boost proposals
Oil settles higher on supply concerns in the Mid-East, economic woes subdue gains
S-Reits falter as investors weigh possibility of zero rate cuts in 2024
CapitaLand Investment posts total revenue of S$650 million for Q1
Europe: Stoxx 600 logs best day in three months as banks shine
US: Stocks rally after strong tech results