Sembcorp Marine denies PPL Shipyard sale rumours

Sembcorp Marine denies PPL Shipyard sale rumours

Local Singapore newspaper Business Times is reporting that struggling Sembcorp Marine is weighing up selling all or part of subsidiary PPL Shipyard.

“SembMarine is understood to have sought valuation for one or more of PPL Shipyard’s waterfront assets,” the newspaper reported today.

Sembcorp Marine, however, has denied the rumours.

In August this year Sembcorp Marine signed a sale and purchase agreement to buy the remaining 15% stake it did not already own in PPL Shipyard. PPL Shipyard designs, builds, repairs and upgrades oil rigs, ships and other vessels from its base in Singapore.

Sembcorp Marine first bought a 50% stake in the yard in 2001, followed by the acquisition for another 35% in 2003.

With orders for new rigs at their lowest level in a generation, Sembcorp Marine has come under pressure this year. It recently offloaded its 30% stake in China’s Cosco Shipyard Group.

Sam Chambers

Starting out with the Informa Group in 2000 in Hong Kong, Sam Chambers became editor of Maritime Asia magazine as well as East Asia Editor for the world’s oldest newspaper, Lloyd’s List. In 2005 he pursued a freelance career and wrote for a variety of titles including taking on the role of Asia Editor at Seatrade magazine and China correspondent for Supply Chain Asia. His work has also appeared in The Economist, The New York Times, The Sunday Times and The International Herald Tribune.

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