In a fleet status update released by Transocean yesterday, it was disclosed that the company had amended its construction contracts with Sembcorp Marine's subsidiary, Jurong Shipyard, to delay the delivery of its two newbuild, ultra-deepwater drillships by 24 months.
The two drillships are now expected to be delivered in 2Q19 and 1Q20, respectively.
The units were originally scheduled to be delivered in 2Q17 and 1Q18.
As mentioned in our recent sector report, “Still on the defensive mode”,the pressure on the yards now mainly centres on defending the existing order book in the hope that there are few order delays, discounts, or cancellations.
Maintain HOLD with S$2.77 fair value estimate on Sembcorp Marine.
Source : OCBC Investment Research