Keppel, Sembcorp Reach Deal with Embattled Brazil Firm
Singapore firms Keppel Corp and Sembcorp Marine said on Monday they had reached settlements with indebted Brazilian firm Sete Brasil over long-standing contracts to build drillships and rigs.Sete, which leased oil rigs to Brazil's state oil firm Petroleo Brasileiro SA (Petrobras), filed for bankruptcy protection in 2016 after being engulfed in a massive corruption scandal.Keppel and Sembcorp Marine are among a host of firms caught up in the wide-ranging "Car Wash" investigation.
Shipbuilding: Keppel Sees Rig Recovery, Profits Up
Singaporean conglomerate Keppel Corp posted improved results for the fourth quarter, helped by narrower losses in its offshore and marine division, and said it was seeing signs of recovery in the rig industry.The company on Thursday reported a net profit of S$135 million ($99.2 million) for the quarter ended December, compared with a net loss of S$492 million a year earlier, when it accounted for a fine its rig-building unit…
Keppel Q2 Profit up 44 Percent
Singapore's Keppel Corp posted a 44 percent rise in its second-quarter profit, citing stronger earnings from its property and infrastructure divisions that offset losses in its other segments, including offshore and marine.Keppel, whose businesses range from rig-building to property development, posted a net profit of S$246 million ($179 million)for the quarter ended June, versus S$171 million a year-ago.Total revenue at the company, in which Singapore state investor Temasek is the biggest shareholder, was S$1.52 billion, slightl
Sembcorp Marine Outlook Subdued on Q1 Profit Slump
Singaporean rig builder Sembcorp Marine Ltd said on Wednesday first-quarter profit fell 86 percent, and signaled a subdued outlook for orders and business volumes.Sembcorp Marine said profit came in at S$5.3 million ($4 million) for the three-month period ended March, compared with S$37 million in the same period a year ago.The year-ago profit was boosted by an one-off gain from the disposal of Sembcorp Marine's stake in Cosco Shipyard Co.Overall business volume has remained significantly below peak levels…
Keppel Posts First Quarterly Loss in 14 Years
Singaporean conglomerate Keppel Corp swung to its first quarterly net loss in 14 years, after accounting for a huge fine its rig-building unit agreed to pay to resolve investigations into charges it bribed Brazilian officials. Keppel, last month, said its offshore rig-building business had agreed to pay more than $422 million to resolve the bribery probe brought against it by authorities in the United States, Brazil and Singapore. Investigations with respect to the individuals involved are ongoing.
Ex-Keppel Lawyer Cooperated in Brazil Bribery Probe
A former lawyer at Keppel Corp Ltd's oil rig building business secretly pleaded guilty and cooperated with U.S. authorities before the Singapore-based company agreed to pay $422 million to settle charges it bribed Brazilian officials, according to court documents. Jeffery Chow, a former senior member of Keppel Offshore & Marine Ltd's legal department, cut a deal to help prosecutors in their probe of Keppel and other former executives, according to the documents unsealed on Tuesday in federal court in Brooklyn.
Sembcorp Marine Swings to Q4 Profit
Annual revenue lowest since 2006. Singapore's Sembcorp Marine Ltd (SembMarine) swung to profit in the fourth quarter of 2016 after provisions pulled the rig builder into a loss the year earlier, but a downturn in oil prices pushed annual revenue to its lowest in a decade. SembMarine and compatriot Keppel Corp Ltd have been suffering from an oversupply of offshore oil drilling rigs, with customers delaying contracts and refraining from placing orders while oil hovers at about half its 2014 peak.
Sembcorp Marine Swings to Loss in Q3
Singapore's Sembcorp Marine Ltd swung to a loss in the third quarter and the rig builder's revenue was hurt by customers deferring rig deliveries amid a protracted downturn in the oil and natural gas market. The company posted a net loss of S$21.8 million ($15.7 million) for the three months ended Sept. 30, compared with a net profit of S$32.1 million a year ago. It said the bottomline was hurt by higher financing costs, share of losses from associates and foreign exchange impact.
Sete Brasil to seek up to $5 bln funding
Sete Brasil Participações SA presented a draft reorganization plan on Friday that includes seeking up to $5 billion in funding and downsizing business, three months after the Brazilian rig leaser sought court protection against 18 billion reais ($5.7 billion) in looming debt payments. Rio de Janeiro-based Sete Brasil is asking creditors, which include some of the world's leading shipbuilders and Brazil's largest lenders, to endorse a plan to help build between eight and 12 rigs…
Keppel Posts Fifth Straight Quarterly Profit Drop
Q2 net profit S$205 mln vs S$397 mln year ago; offshore and marine revenue down 54 pct. Second-quarter profits at Singaporean rigbuilder Keppel Corp fell 48 percent from a year ago, fifth straight decline in quarterly profit, weighed down by lower revenues at its offshore and marine segment. The conglomerate, whose businesses include property development and infrastructure, and its smaller rival Sembcorp Marine have been hit by the 60 percent drop in oil prices since mid-2014.
Sembcorp Profit Halved as Clients Defer Projects
Revenue falls 30 pct; order book at S$9.7 billion. Singapore rig-builder Sembcorp Marine's quarterly profit halved as customers deferred projects, and it faces prolonged uncertainty on contracts from its biggest client, Sete Brasil, whose shareholders have approved its bankruptcy. Sembcorp Marine posted a profit of S$55 million ($41 million) for the three months ended March 31, compared with a profit of S$106 million a year ago.
Keppel Q1 Profit hit by Offshore, Marine Segment
Singapore conglomerate Keppel Corp posted a 41 percent fall in quarterly profit, its fourth straight decline, as offshore and marine segment revenue slumped because of the deferment of some projects and suspension of contracts related to Sete Brasil. Keppel, one of the world's largest builders of offshore drilling rigs, has been hit by the 60 percent drop in oil prices since mid-2014. Its businesses include property development and infrastructure.
Petrobras Sought Arbitration for Sete Brasil talks, Sources Say
State-controlled Petróleo Brasileiro SA unsuccesfully sought the appointment of arbiters to rework a long-term contract with debt-laden drilling rig leaser Sete Brasil Participações SA, according to three sources with knowledge of the situation. The proposal, made in recent weeks, called on each party to name three mediators to rework the contract, said the sources, who requested anonymity since the plan is private. The contract between Petrobras and Sete Brasil has been in dispute for two years.
Sembcorp Marine posts first Quarterly Loss.
Posts S$535 mln loss vs year ago profit; net order book backlog at S$10.4 billion. Singaporean rig builder Sembcorp Marine Ltd posted its first quarterly loss, hit by writedowns and project delays by its key customers, underscoring the strain caused by plunging crude oil prices. The company also warned that it expects the downtrend to last longer than previous cycles as Singapore's $10 billion rig building industry faces cancellations and a dearth of new orders.
Enseda Shipbuilding & Surviving the Petrobras Crisis
Enseada Shipbuilding was established to build deepwater drillships for Petrobras. Seventy percent of the company is owned by a consortium composed of Brazilian companies, Odebrecht (50 percent), OAS (25 percent), UTC (25 percent), with the remaining 30 percent belonging to Japanese shipbuilding giant, Kawasaki Heavy Industry (KHI). With all the Brazilian shareholders involved in the Car Wash “Lava Jato” operation, investigating corruption and embezzlement schemes with Petrobras…
Mitsubishi-led Group Exiting Stake in Brazil Shipyard
A group of Japanese shipbuilders led by Mitsubishi Heavy Industries Ltd (MHI) plans to exit its 30 percent stake in Brazilian shipbuilder Ecovix and declare the investment as a loss, Valor Economico newspaper reported on Tuesday. The group led by MHI plans to sell its stake in Ecovix, which it bought in 2013 for about $300 million, to Jackson Empreendimentos for a "symbolic amount," Valor reported. Jackson Empreendimentos owns the remaining 70 percent of Ecovix…
Banco do Brasil Expects Sete Brasil Finance Deal by Year-end
Banco do Brasil SA expects to reach an agreement, along with other creditors, with troubled Brazilian offshore drillship builder and leaser Sete Brasil over its outstanding debts by the end of the year, the bank's chief executive said on Monday. State-led Banco do Brasil, which plans to restart a loan program for suppliers of state-run oil company Petroleo Brasileiro SA this week, also aims to help finance companies bidding for hydroelectric concessions at an auction in November, CEO Alexandre Abreu said.
Petrobras Reaches Deal for Reorganization of Sete Brasil
Brazilian state-run oil company Petrobras and other investors reached an agreement to approve the restructuring plan of ailing oil-drilling-rig builder Sete Brasil Participações SA, two leading local newspapers reported on Friday. The plan would pave the way the refinancing of Sete Brasil's $3.8 billion in debt. Shareholders reached a deal for Sete to operate five drills in a joint venture with an international partner, newspapers Valor Economico and Folha de Sao Paulo reported, without disclosing sources for the information.
Sembcorp Marine: No Sete Brasil Payments This Year
Singapore's Sembcorp Marine has not received payment from Sete Brasil on drillship projects this year and may slow down the projects if the situation persists, a company executive said on Wednesday. "Basically what has been ongoing, based on the delay, I think there may be some slow down," Tan Cheng Tat, Chief Financial Officer, said at an earnings briefing. Tan confirmed that despite the non-payment, the drillship projects for Sete Brasil remained cash flow positive.
Banks Agree on $5bln Bailout of Sete Brasil
A group of five Brazilian lenders agreed to extend up to $5 billion in fresh financing for ailing rig producer Sete Brasil Participações SA, in a first step aimed at staving off bankruptcy, two sources with knowledge of the situation said opn Thursday. State-controlled lenders Banco do Brasil SA and Caixa Econômica Federal, and private-sector lenders Itaú Unibanco Holding SA, Banco Bradesco SA and Banco Santander Brasil SA will provide the financing to Sete Brasil once their boards of directors approve the plan…
