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SembMarine wins deals worth more than S$200m

The Business Times by ANNABETH LEOW


OFFSHORE and marine group Sembcorp Marine is set to build its first battery-operated passenger ferries for Norwegian operator Norled AS.

Three hybrid vessels will be delivered in the fourth quarter of 2020, as Sembcorp Marine plunges into the roll-on/roll-off passenger ferry design and construction segment. The vessels will be deployed to ply the short-sea Hella-Vangsnes-Dragsvik service route.

The Norway ferry deal was one of two contracts unveiled by Sembcorp Marine on Monday, with a combined value of more than S$200 million.

Sembcorp Marine is also building two topsides at its integrated yard facilities for a subsidiary of �rsted Wind Power, in an engineering, procurement, construction, hook-up and commissioning works agreement.

The topsides, slated for delivery in the first quarter of 2021, are headed to an offshore wind farm in the North Sea.

Tan Heng Jack, Sembcorp Marine's head of specialised shipbuilding, said in a statement that the group hopes the ferry deal will result in "a long-term relationship that brings many more future collaborations" with Norled.

Sembcorp Marine added that it expects the two new contracts to have a positive contribution on its earnings, but it is not looking to any material impact on net tangible assets and earnings per share for the year to Dec 31.

The group most recently reported third-quarter losses of S$29.8 million for the three months to Sept 30, in results released late last week.

Phillip Securities analyst Chen Guangzhi upgraded the counter to "neutral" on Monday, citing a price correction, but wrote that "net order book continues to decline".

The counter closed up by one Singapore cent, or 0.62 per cent, to S$1.62, after the announcement.