SembMarine gives notice of 3 consecutive years of losses

RIG builder Sembcorp Marine has given notice that it has recorded pre-tax losses for three consecutive years. However, the group's six-monthly average daily market capitalisation is S$2.46 billion as at Thursday.

This means the group still meets the financial entry criteria to avoid being placed on the Singapore Exchange's (SGX) watch list.

According to bourse listing rules, mainboard-listed companies will be placed on the watch list under the financial entry criteria if they record pre-tax losses for the three most recently completed consecutive financial years, and fail to maintain an average daily market cap of at least S$40 million over the last six months.

Companies in the watch list must take active steps to satisfy the financial requirements within 36 months from the date they are placed on the watch list.

That means recording a consolidated pre-tax profit for the most recently completed financial year, based on the latest full-year consolidated audited accounts, and having an average daily market cap of S$40 million or more. Otherwise, they will be delisted from the SGX, or have their trading suspended with a view to delisting.

SembMarine recorded a net loss of S$137 million for fiscal 2019, compared with a net loss of S$74 million in fiscal 2018, according to its 2019 annual report.

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This was mainly due to the accelerated depreciation of S$48 million arising from its Tanjong Kling Yard and continued low overall business volumes. The loss was partially offset by its repairs and upgrades segment, which rose on improved margins and better product mix.

SembMarine shares ended at 68.5 Singapore cents on Thursday, up two cents or 3 per cent.