SembMarine bags $200m renewable energy projects

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

It is moving into the ropax ferry design and construction niche, with three such battery-operated vessels which can carry passengers and vehicles - slated for delivery to Norwegian ferry and express boat operator Norled AS in the fourth quarter of 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 Orsted Wind Power. Delivery is set for the first quarter of 2021.

Mr 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".

He added that the group hopes the project will lead to "a long-term relationship that brings many more future collaborations" with Norled.

Meanwhile, Mr 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 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.

Sembcorp Marine said 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 $29.8 million for the three months to Sept 30, against profits of $100.7 million the year before, in results released last week.

Sembcorp Marine was up by one cent, or 0.62 per cent, to $1.62 at yesterday's close.

A version of this article appeared in the print edition of The Straits Times on October 30, 2018, with the headline 'SembMarine bags $200m renewable energy projects'. Print Edition | Subscribe