Hot stock: Sembmarine drops 4.9% after giving notice of 3 straight years of losses

SHARES of mainboard-listed Sembcorp Marine (Sembmarine) saw heavy trading on Tuesday (Mar 29) after the group gave notice that it recorded 3 consecutive years of pre-tax losses.

The marine and offshore group's counter dropped as much as 4.9 per cent or S$0.005 to reach a low of S$0.098 as at 10.36 am.

By 2.34 pm, Sembmarine's shares were 3.9 per cent or S$0.004 lower at S$0.099 and were the most heavily traded by volume with 273.6 million shares changing hands.

The group has a 6-month average daily market capitalisation of S$2.6 billion as at Mar 28, which means the group still meets the financial entry criteria to avoid being placed on the Singapore Exchange's watch list.

Firms are placed on the SGX watch list if they record losses for the 3 latest consecutive financial years and have an average daily market cap of under S$40 million over the last 6 months.

Sembmarine issued notices for 3 consecutive years of pre-tax losses in both 2021 and 2020.

READ MORE: Sembmarine records 3 straight years of losses, meets criteria to avoid watch list