A Giant Shake‑up in Singapore’s Offshore & Marine Scene
What Was Up Before the Merger?
Last year’s rig bills were slapped in the face by endless oil price swings, a glut of supply, and a sharp drop in new orders.
The world is shifting toward clean power, squeezing traditional rig‑builders into tighter competition.
Covid‑19 slashed revenue; oil prices fell, and projects became scarcer, squeezing profits further.
With each failing project, debt climbed like a bad Japanese stock, forcing Sembmarine to raise $3.6 billion in fresh equity over the past two years, powered by the state‑backed Temasek.
The New Power‑Play
Loh Chin Hua, Keppel’s CEO and Chairman, summed it up: “We’re bringing two of Singapore’s leading offshore & marine firms together to become a stronger force that can tackle the energy transition with gusto.”
The combined entity’s pro‑forma equity is pegged at $8.7 billion, though the exact figure will fluctuate based on the share price when the new company gets listed.
Keppel shareholders will receive 46 % of the merged shares in‑specie, while Keppel itself keeps a 10 % stake.
The Workforce Side
Between shipyards in Singapore and abroad, the duo will employ a sizable crowd.
Neither company wants to talk about potential layoffs, but they’ve promised to get unions in the loop.
Final Tally
It has endured four years in the red, including a huge $1.2 billion net loss in 2021.
In 2021, Keppel decided to exit the rig‑building business and focus on infrastructure after writing off massive impairments in its offshore arm.
JPMorgan steers the deal for Keppel, Credit Suisse for Sembmarine.
Shareholder votes are set for later this year.
With a merger of this magnitude, the hopes are high that the new entity can wield the power of scale and innovation to stay afloat as the industry sails toward greener horizons.
