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SembMarine bags 2 renewable energy projects worth over S$200m

SEMBCORP Marine has taken on two separate renewable energy projects valued at more than S$200 million, the group announced on Monday morning.

It is moving into the ropax ferry design and construction niche with the design and construction of three such battery-operated vessels carrying passengers and vehicles, slated for delivery to Norwegian ferry and express boat operator Norled AS in Q4 2020.

Sembcorp Marine will also build two topsides at its integrated yard facilities for deployment at a wind farm in the British North Sea, under an engineering, procurement, construction, hook-up and commissioning deal with a subsidiary of Ørsted Wind Power. Delivery is set for Q1 2021.

Tan Heng Jack, head of specialised shipbuilding for Sembcorp Marine, said in a media statement that the ropax ferry deal "demonstrates our ambition to be a leading provider of renewable energy-driven solutions" and added that the group hopes that the project will lead to "a long-term relationship that brings many more future collaborations" with Norled.

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Meanwhile, Samuel Wong, head of offshore platforms, said the group was "very grateful... for the opportunity to progress further in the competitive offshore renewable energy market" with the wind power contract.

Sembcorp Marine said that it expects a positive contribution to its earnings from the two contracts, but added that the deals are not expected to have any material impact on its net tangible assets and earnings per share for the year to Dec 31.

The group most recently reported third-quarter losses of S$29.8 million for the three months to Sept 30, against profits of S$100.7 million the year before, in results released last week.

Sembcorp Marine was down by S$0.11, or 6.4 per cent, to S$1.61 at last Friday's close.