SembMarine: Provision adequate despite client's bonds pressure

Singapore

SEMBCORP Marine (SembMarine) maintained that its provision for risks on its rig-building projects remains adequate despite news of its Kuala Lumpur-listed client, Perisai Petroleum Teknologi Bhd, facing heat to redeem S$125 million securities due in October.

Perisai Petroleum said it will commence discussions with holders of the Singapore-dollar bonds issued under a S$700 million multi-currency term note programme. DBS data shows these bonds have already dipped to a record low price of 60 cents this month.