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3 Things You Should Know About Sembcorp Marine

Ser Jing - Sembcorp Marine First Quarter Result, Full Steam Ahead (pic)It may be small, but our island has the distinction of being one of the busiest ports in the world. A ship arrives or docks every three minutes with more than 60,000 containers loaded or unloaded every day.

 

What’s more, Singapore is a thriving international centre for shipbuilding, ship repairs and a global leader in the building of jack-up rigs.

One Singaporean company at the forefront of this industry is Sembcorp Marine (SGX: S51). The company is the marine and offshore engineering arm of Sembcorp Industries (SGX: U96) and provides a wide range of services across the entire value chain, from ship repair and upgrade services to specialised shipbuilding, tanker conversion and offshore and marine engineering. Sembcorp Marine is also a global leader in rig building.

The company was founded in 1963, as the Jurong Shipyard Limited, changing its name to Sembcorp Marine Ltd in 2000.

The company has a global network spanning six hubs in Singapore, China, India, Brazil, the Middle East, UK and the USA and employs over 10k people.

But did you know…

  1. Sembcorp Marine is one of the two biggest oil-rig makers in the world – the other being another Singapore-based company – Keppel Corporation (SGX: BN4).
  2. Sembcorp Marine’s shares have jumped six-fold over the last decade while the Straits Times Index (SGX: ^STI) only managed to double in the same time period.
  3. Sembcorp Marine started life as Jurong Shipyard Ltd – a joint venture between the Government of Singapore and Ishikawajima Harima Heavy Industries Co. Ltd of Japan.

Sembcorp Marine has recently announced that it has signed a contract with the US based Helix Energy Solutions Group for the construction of a semisubmersible well intervention vessel. Indeed, with a proven track record and 50 years of experience, Sembcorp Marine will always be in a powerful position to win projects from smaller companies.

But with competition from rival Keppel Corporation for offshore rig orders, as well as yards in Korea and China it will certainly be kept on its toes.

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore contributor Alison Hunt doesn’t own shares in any companies mentioned.