Rig Builder News

Singapore's Sembcorp Marine (Sembmarine) scrapped a deal to merge with Keppel Corp's offshore and marine unit and form new company, in favour of directly buying the unit for S$4.50 billion ($3.19 billion), the Temasek-backed oil rig builder said on Thursday. The new structure also lowers the value of Keppel's unit by S$378 million from the S$4.87 billion valuation it got according to the terms of the previous agreement struck in April, Sembmarine said. This deal gives Sembmarine's shareholders a bigger stake –– of 46% stake…

Singapore's Sembcorp Marine Ltd (Sembmarine) said on Friday its half-year loss narrowed 78% from a year earlier, as the oil rig builder finished delayed projects after pandemic curbs were eased while also benefiting from cost management.The company said its overall order visibility has improved on the back of rising oil prices and renewed concerns about energy security amid geopolitical tensions.Sembmarine has been a loss-making business since it posted an annual loss in 2018, in an industry plagued by oil price volatility, a drop in new orders, and the pandemic's impact.The company on Friday

Singapore-based shipbuilder Sembcorp Marine has delivered the world's first 8th generation drillship, the Deepwater Atlas, to its owner Transocean.The Deepwater Atlas is the first of two ultra-deepwater drillships based on the Sembcorp Marine's Jurong Espadon 3T design. The completed drillship features three-million pound hook-load hoisting capacity and, according to the rigbuilder, sets a new frontier for next generation drillships with its ability to accommodate well control systems for 20,000 psi (pounds per square inch) drilling and completion operations.

Singapore's Keppel Offshore & Marine has signed a framework agreement with offshore wind industry giant Ørsted for future offshore substation (OSS) projects."The agreement is part of a strategic initiative to strengthen the long-term partnership of the two companies and streamline processes for future OSS projects. This follows Keppel O&M’s recent completion of its first project for Ørsted in Singapore in September 2021 – two OSS for Taiwan’s Greater Changhua 1 & 2a offshore wind farms…

Keppel Offshore & Marine, an offshore construction subsidiary of Singapore's Keppel Corp, expects challenging conditions ahead due to the drop in oil prices but says its business diversification into gas and renewables has paid off.The company has traditionally been called an "offshore rig builder" as this was the Keppel O&M's core business in the heydays before the 2014-16 collapse in oil prices when oil fell from over $100 a barrel to below $30.However, with offshore drilling rig orders dwindling…

Singapore-based offshore drilling rig builder Keppel Offshore & Marine has delivered a newbuild jack-up drilling rig to Norway's Borr Drilling.The rig, named Hild, was built to Keppel's KFELS Super B Class design. The Hild is the sixth jack-up that Keppel has delivered to Borr Drilling, out of the 11 that have been ordered. It is capable of operating in 400 feet water depth and drilling to 35,000 feet. The jack-up is equipped with a maximum combined cantilever load of 2,700 kips and high capacity hook loads of two million poundsFollowing this delivery…

Singapore-based offshore rig builder Keppel Offshore & Marine has partnered up with Energy Market Authority (EMA) to develop energy solutions in the areas of distributed energy resources, digitalization and emerging low carbon alternatives.As part of the $10 million partnership, EMA and Keppel O&M are launching a grant call for solutions relating to energy storage systems and smart power grids for the offshore and marine environment. "These solutions should seek to reduce overall energy usage and carbon footprint while enhancing overall operational efficiency.

Singapore state investor Temasek Holdings is offering to buy control of conglomerate Keppel Corp in a S$4.1 billion ($3 billion) deal that could hasten a consolidation in the rig building sector which is battling the effects of low oil prices.The announcement, which confirmed what two sources with knowledge of the matter told Reuters earlier on Monday, boosted shares in rig builder Sembcorp Marine by 12% on expectations of a likely shake-up in the industry. Shares in Sembcorp's parent Sembcorp Industries rose 10%.Keppel's offshore and marine unit…

Singaporean rig builder Sembcorp Marine said on Wednesday that authorities had searched its shipyard in Brazil as part of a graft investigation, sending its shares lower and underlining the staying power of Brazil's ongoing "Car Wash" corruption probe.Sembcorp Marine said the search was related to investigations against former consultant Guilherme Esteves de Jesus, adding that Martin Cheah Kok Choon, the former president of the Estaleiro Jurong Aracruz shipyard, was also under investigation.In a separate statement…

Singapore-based rig builder Keppel FELS announced Friday it has delivered a new jackup rig to EnscoRowan. The US based driller, the product of a recent merger between Ensco and Rowan, has a contract to deploy the rig in the UK North Sea.The harsh environment newbuild ENSCO 123 is constructed to an enhanced version of Keppel’s state-of-the-art KFELS Super A Class design, the builder said. It was ordered by Ensco in November 2013 and originally planned for delivery in 2016.ENSCO 123 is the ninth harsh environment jackup built and delivered by Keppel to EnscoRowan.

Neptune Energy Norge AS has hired the newly built Beacon Atlantic semi-submersible drilling rig for up to 16 wells offshore Norway.The oil and gas producer said in a press release that it has chartered the rig from China’s rig builder CIMC Raffles, and the rig will be managed by the Norwegian offshore drilling specialist Odfjell Drilling.The commencement of the drilling operations is expected to be in Q4 2019 and the estimated duration of the firm program is 400 days. CIMC Raffles and Odfjell Drilling are further establishing a project team at the shipyard to prepare and mobilize for the operations in the North Sea.CIMC Raffles and Odfjell…

Singaporean rig builder Sembcorp Marine Ltd swung into the red in the second quarter, and cautioned a trend of negative operating profit would continue in the near term as overall business volume remains low.It turned in a loss of S$55.6 million ($40.68 million) for the three months ended June, compared with a profit of S$5.1 million in the same period a year ago.Sembcorp Marine, majority owned by industrial conglomerate Sembcorp Industries Ltd, saw its revenue more than double to S$1.63 billion due to revenue recognition on delivery of some rigs.

Singaporean rig builder Sembcorp Marine Ltd said on Wednesday first-quarter profit fell 86 percent, and signaled a subdued outlook for orders and business volumes.Sembcorp Marine said profit came in at S$5.3 million ($4 million) for the three-month period ended March, compared with S$37 million in the same period a year ago.The year-ago profit was boosted by an one-off gain from the disposal of Sembcorp Marine's stake in Cosco Shipyard Co.Overall business volume has remained significantly below peak levels…

Construction work has begun on a joint venture to build a shipyard on Saudi Arabia's eastern coast, oil rig builder Lamprell Plc said in a statement on Friday. The joint venture, International Maritime Industries (IMI), started operations after reaching agreement for a loan from the state-backed Saudi Industrial Development Fund (SIDF), the statement said. The SIDF agreed in principle last year to provide 3.75 billion riyals ($1 billion) in financing for the project. IMI is a partnership between United Arab Emirates-based Lamprell, state oil giant Saudi Aramco, National Shipping Co of Saudi Arabia (Bahri) and South Korea's Hyundai Heavy Industries Co.

Singapore's Sembcorp Marine swung to a net loss in the fourth quarter, with revenue plunging 21 percent due to lower rig-building revenue, fewer floater and offshore platforms projects.   The rig builder reported a net loss of S$33.8 million ($25.59 million) for the three months ended December, compared with profit of S$34.3 million a year ago.   The company's full-year net profit slumped 82 percent to S$14.1 million. Analysts expected Sembcorp to report a net income of S$70.6 million for the full year, according to Thomson Reuters data.   Reporting by Aradhana Aravindan

Shares of Singaporean rig-builder Sembcorp Marine closed 12 percent lower on Monday, their biggest daily fall in nine years, prompting a query from the bourse regarding the trading activity.   This is the second time in a month the Singapore stock exchange has issued a trading query to Sembcorp Marine after a sharp rise in the stock on Jan. 23.   Shares of the company closed down 32 Singapore cents at S$2.37 on Monday. They have risen 29 percent so far this year.   The company will report its financial results next week.     (Editing by Vyas Mohan)

Sembcorp Marine has denied the rumours that it was mulling the sale of all or part of subsidiary PPL Shipyard, according to a report in the Business Times. "Neither our rig-building subsidiary PPL Shipyard nor any of the yards from which PPL is operating are up for sale," says the company. SembMarine is understood to have sought valuation for one or more of PPL Shipyard's waterfront assets, sparking market talk over its plans for its rig-building subsidiary. Asset valuations are typically done when owners are evaluating financial options, including divestment. A SembMarine spokesman, responding to an enquiry from The Business Times, denied that the yard group is putting up PPL Shipyard or any of the rig-builder's yards for sale.

Keppel Corp, the world's biggest oil rig builder, is still hard hit by the downturn in the oil industry and will now shut down three yards in its homeland. Singapore-based offshore company Keppel reduced its direct work force by about one third. The workforce has been reduced by 2,620 employees in the fourth quarter a cut of 11.8%. For 2016 as a whole Keppel reduced its direct workforce by 10,600, some 3,800, and about 6,800 overseas, or 35% of its total direct workforce. The number of sub-contractors in Singapore has also been reduced by 3,300. Keppel and peers have been slashing jobs as demand for offshore drilling rigs slumped amid weak oil prices. Though a decision by OPEC to reduce output renewed optimism, Keppel said it isn't expecting a quick recovery.

Oil rig builder Lamprell Plc reported a 64.7 percent fall in revenue in the first half of the year and cut its full-year forecast, hurt by lower activity levels across the industry.   The company said it expected revenue for 2017 to be in the range of $370 million to $390 million, as it saw continuing low levels of walk-in work. Lamprell had forecast full-year revenue to be in the lower half of the $400 million-$500 million range in March.   Lamprell, which runs three rig building yards in the UAE, said revenue fell to $159.2 million in the six months ended June 30 from $451.3 million a year ago.   Reporting by Arathy S Nair

Singaporean rig builder Sembcorp Marine Ltd said it had agreed to buy the 15 percent of PPL Shipyard Pte Ltd it did not already own for about $115 million from PPL Holdings Pte Ltd and E-Interface Holdings Ltd. "This will enable the company to optimally manage the businesses, finance and resources of PPLS, and fully align the latter's corporate strategies to the company to generate sustainable returns," SembMarine said in a statement. PPL Shipyard, 85 percent owned by SembMarine, designs and builds oil rigs and ships. Last week, SembMarine, which has been suffering from a slump in orders due to low oil prices, agreed to buy Norway-based ship design firm LMG Marin AS for $20 million.

British oil rig builder Lamprell sees full-year revenue slipping to the bottom of its guidance range because of stagnant oil sector investment and losses at a windfarm project, it said on Wednesday, sending its shares sharply lower. The company said that total losses on its East Anglia One (EA1) offshore windfarm project would be about $80 million because of mounting costs for unplanned staffing and equipment requirements. "We anticipated a challenging 2017 given the weakness of our end markets…

Singaporean rig builder Sembcorp Marine Ltd. posted a loss in the third quarter, hurt by higher financing costs and a fall in orders due to weak oil prices.   The company posted a net loss of S$21.8 million ($15.7 million) for the three months ended Sept. 30, compared with a net profit of S$32.1 million a year ago.   ($1 = 1.3906 Singapore dollars) (Reporting by Aradhana Aravindan; Editing by Amrutha Gayathri)

Singapore's Sembcorp Marine Ltd swung to a loss in the third quarter and the rig builder's revenue was hurt by customers deferring rig deliveries amid a protracted downturn in the oil and natural gas market. The company posted a net loss of S$21.8 million ($15.7 million) for the three months ended Sept. 30, compared with a net profit of S$32.1 million a year ago. It said the bottomline was hurt by higher financing costs, share of losses from associates and foreign exchange impact. The company, majority-owned by industrial conglomerate Sembcorp Industries Ltd, said revenue dropped 21 percent.