Sembcorp Marine Ltd., which posted its first loss in more than a decade in the fourth quarter, saw its shares jump by the most in nearly a month amid talk that the company could be taken private.
The world’s second-largest builder of oil rigs on Monday reported a net loss of S$537 million ($384 million) for the three months through December, the first quarterly loss since it started reporting data in 2003. The company took impairment charges and provisions of S$609 million for projects of client Sete Brasil Participacoes SA and others.
Shares rose as much as 8.2 percent in Singapore before finishing up 7.5 percent at S$1.57, amid speculation that Temasek Holdings Pte could take the rig builder private. Sembcorp Marine stock has fallen 48 percent in the past year, making it the second-worst performer on Singapore’s Straits Times Index.
The chance of a restructuring is rising as Sembcorp Marine’s gearing has reached 1.1 times, Daiwa analyst Royston Tan wrote in a note to clients Tuesday. An offer from Temasek would help investors cut losses, as the weak outlook for the oil-rig industry could drive down shares from here, KGI Securities analyst Joel Ng said Tuesday. Temasek, which owns 49.5 percent of Sembcorp Marine’s parent, declined to comment in an e-mailed response to Bloomberg.
Brazil Energy Insight 
Leave a comment