Hot stock: Sembmarine up 6.2% after UK wind farm contract win

SHARES of mainboard-listed Sembcorp Marine (Sembmarine) hit a two-month high on Tuesday after it said on Monday that it clinched a £600 million (S$1.12 billion) UK wind farm contract together with GE Renewable Energy's Grid Solutions.

The counter hit an intraday high and closed at 17.1 Singapore cents on Tuesday, up 6.2 per cent or one cent. The last time the counter closed near this level was on Jan 20, 2021.

The offshore and marine company was also the most traded by volume on the Singapore bourse with 385.6 million shares changing hands.

The stock has been on the downtrend since Sembmarine's demerger from Sembcorp Industries and is trading at around half its book value.

Together with GE Renewable Energy, Sembmarine will supply a high-voltage direct current electrical system for UK-based Sofia Offshore Wind Farm.

The project, which spans 593 square kilometres, will power about 1.2 million UK homes with clean and renewable energy, making Sofia one of the largest wind farms in the world once the project is completed.

Sembmarine's scope of work in this contract includes design, construction, installation and commissioning of the offshore converter platform. The construction of the platform will start this year and is slated for delivery and installation at the wind farm site in 2023.