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Sembcorp Marine Reports Better Start to 2022 Amid Improving Energy Markets

An illustration of a Sembcorp Marine-designed Wind Turbine Installation Vessel for Maersk Supply Service. Illustration courtesy Maersk Supply Service

Sembcorp Marine Reports Better Start to 2022 Amid Improving Energy Markets

Mike Schuler
Total Views: 1020
May 18, 2022

Singaporean shipbuilder Sembcorp Marine says the first half of 2022 is shaping to be “significantly better” than the first half of 2021 as the industry outlook for energy, including oil and gas, renewables and other “green solutions,” continues to improve.

The outlook was provided in an interim business update for Q1 2022, in which the shipbuilder highlights the completion of several key projects and new project opportunities in “cleaner” offshore and marine solutions, such as renewables and new energy.

Sembcorp Marine said it has already achieved “multiple project completions” already in 2022, notwithstanding “pandemic-related resource constraints and shortages of skilled workers.” The shipbuilder started the year with a total of 17 projects under execution, with 12 projects scheduled for completion and delivery in FY2022. Year-to-date, 12 projects have been completed. Among them, the delivery of the newbuild FPSO, the Johan Castberg, to Equinor for harsh-environment operation in the Barents Sea off Norway.

The company also highlighted its “landmark win” in the renewable energy sector with a newbuild contract for Wind Turbine Installation Vessel for Maersk Supply Service, a unit of A.P. Moller-Maersk, which will be built to a proprietary design by Sembcorp Marine’s in-house design team.

As of March 31, Sembcorp Marine had a net order book of S$1.75 billion (US $1.25 billion), consisting of S$1.51 billion of projects under execution and S$0.24 billion of ongoing Repairs & Upgrades projects.

Notably, Semcorp Marine in April entered into a definitive merger agreement with Singaporean rival Keppel Offshore & Marine, which, if approved, will result in the creation of a new combined entity that will be world’s biggest builder of oil rigs and push the new company further into renewables and alternative energy solutions.

Sembcorp’s business update said renewables and cleaner/green solutions comprise approximately 65% of the its net order book.

“The industry outlook for the oil & gas, renewables and other green solutions continues to improve,” Sembcorp’s update said. “The Group is actively responding to new opportunities and is focused on converting its orders pipeline into firm contracts in FY2022.”

“The Group expects its financial performance in 1H2022 to be significantly better than 1H2021.”

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