Stock Market Today-Sembcorp Marine shares jump on deal to sell 9 rigs for US$1.3b

SINGAPORE - Sembcorp Marine shares surged 9.5 cents or 5.48 cents to S$1.83 on Monday morning (Oct 9) after it said it will proceed with the sale of nine jackup drilling rigs to Borr Drilling for US$1.3 billion (S$1.77 billion), or US$144 million per rig.

Although the sale will result in a loss of about S$15 million for SembMarine, it improves the rigbuilder's liquidity position.

Borr Drilling will make an upfront down payment of about US$500 million, with the balance of US$800 million to be paid at any time within five years from the respective delivery dates of the rigs.

The nine apparatuses sold incorporate every one of the six apparatuses from contracts which had been ended with its unique clients, and three apparatuses by and by under different phases of development finishing. 

In the previous two months, SembMarine had ended requests for five apparatuses with clients Oro Negro and Perisai; every unit was requested at about US$208 million out of 2013, said OCBC investigator Low Pei Han. 

Ms Low kept up a purchase approach SembMarine with a S$1.98 per share reasonable esteem assess on Monday.

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