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Hot stock: Sembcorp Marine down after profit warning

Marine logistics player Marco Polo Marine and rigbuilder Sembcorp Marine traded shots at each other overnight in an ongoing contractual dispute over a US$214.3 million rigbuilding contract.

RIGBUILDER Sembcorp Marine traded 4.6 per cent lower to S$1.965 at 9.16am on Wednesday morning. Around 1.5 million shares were traded.

Parent Sembcorp Industries was also down 2.5 per cent to S$3.17 on 1.3 million shares traded.

The activity was after Sembcorp Marine said on Tuesday evening that it is expected to make a net loss for its fourth quarter ending Dec 31, 2015, and a significant decline in net profit for 2015.

The loss is due to "the challenging operating environment and customers deferring or seeking to defer their rig orders".

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Sembcorp Marine is embroiled in a legal dispute with marine logistics firm Marco Polo Marine over a terminated US$214.3 million rigbuilding contract.

Marco Polo said on Wednesday morning that it is under no obligation to pay a US$21.43 million progress payment that Sembcorp has asked for. Sembcorp's PPL Shipyard began legal action against Marco Polo on Tuesday, demanding that Marco Polo, as a guarantor, pay the progress payment due to it.

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