Singapore’s Sembcorp Marine has recorded pre-tax losses for the past three consecutive years, but the offshore and marine contractor has avoided being placed on the Singapore Stock Exchange’s (SGX) watch-list due to its impressive market capitalisation.
Sembmarine on Wednesday confirmed its financial woes that were exacerbated by protracted periods of downtime at its local yards coupled with the difficulty in hiring workers from South Asia during the height of the coronavirus pandemic.
“We wish to draw investors’ attention to Rule 1311(1) of the [SGX] Listing Manual which states that the Exchange will place an issuer on a watch-list if it records: pre-tax losses for the three most recently completed consecutive financial years — based on audited full-year consolidated accounts — and an average daily market capitalisation of less than S$40 million (US$29.53 million) over the last six months,” said the company.
Fortunately for Sembmarine its latest six-month average daily market capitalisation was S$2.641 billion.
“The company will make an immediate announcement should it be notified by the Exchange that it will be placed on the watch-list,” added Sembmarine.
The contractor in late February posted a S$1.171 billion net loss for 2021 after making provisions totalling S$839 million.
“Because of the pandemic… the past two years have been among the most challenging years in recent memory,” Sembmarine chief executive Wong Weng Sun said at the time.
“Our projects under execution faced shortages of skilled workers and supply chain constraints, which resulted in significant cost overruns.”
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