So much had been discussed lately on Sembcorp lately, be it Sembcorp Industries (SCI) or Sembcorp marine (SCM).
Both SCM and SCI stock prices are at their 5 year low.
Profit warning
The price decline is primarily after SCM issue profit warning on 1 Dec for coming quarterly result. This is at the back of one of the worst oil crisis for decades which resulted likely in the lack of new orders, potential terminations and postponements of existing contracts. SCI marine division owns ~61% of SCM. The marine division contributes ~>40% of SCI bottom line in 2014. If SCMis to suffer in profit, so will SCI then.
Not all bad
To buffer the bad news from rigs cancellation from Marco polo and postponement from North Alantic Drilling, SCI had announced a couple of good news thereafter also. SCI utility segment has signed an MOA to invest and develop a US$300mil gas-fired power ......