On June 8, both companies jointly announced a demerger that will result in the cessation of Sembmarine as a 61%-owned subsidiary of Sembcorp. This will come after a recapitalisation exercise of Sembmarine.
Sembmarine will no longer be a drag on parent Sembcorp Industries after a rights issue and demerger. Can the offshore unit recapture its glory days?
SINGAPORE (June 12): For the last half decade or so, Sembcorp Marine (Sembmarine) has been hit by declining revenue and several annual losses amid a severe slump in the oil industry. As a result, the consolidation of its weak performance has been a drag on its parent company, the conglomerate Sembcorp Industries. However, the latter has patiently kept faith with the offshore services provider in the hopes that it will eventually turn around as and when the oil industry recovers. That is until now.
