SEMBCORP Marine unit Sembawang Shipyard continues to boost its order book, yesterday announcing major contracts worth $130 million as well as the renewal of a long-term contract with Eitzen Group.
Vincent Wee
Fri, Feb 19, 2010
The Business Times
SEMBCORP Marine unit Sembawang Shipyard continues to boost its order book, yesterday announcing major contracts worth $130 million as well as the renewal of a long-term contract with Eitzen Group.
The first contract is for the life extension of Favoured Customer Contract (FCC) customer North West Shelf LNG Venture's LNG carrier, the Northwest Snipe. The vessel is scheduled to arrive in the shipyard in September to undergo life extension works including ballast tanks blasting and coating work, hull structural enhancement, integrated automation system renewal, HVAC and refrigeration system renewal, cargo and ballast valve actuator system replacement and boiler system renewal. This will be the yard's second longevity project for the same customer following the successful completion of life extension work on Northwest Sanderling last August.
The second contract is for major fire damage repair work on a 2005-built product tanker from a regular Taiwanese customer, believed to be the Formosaproduct Brick which was badly damaged by a fire which broke out after a collision with a bulk carrier in the Straits of Malacca last August. Work has just started on the vessel and the contract, worth $35 million, includes major steelwork renewal, complete renewal of the entire accommodation block, major electrical and instrumentation work in the engine room, mechanical work and pipework.
Other contracts include three vessel upgrading/ repair projects from cruise lines Star Cruises, Carnival Cruise Line and Indonesia's Pelni.
Meanwhile the renewal of the long-term contract with Eitzen Group is a reaffirmation of the close relationship between Eitzen and Sembawang Shipyard. It is believed that the last long-term contract was signed between the two in 2002.
Under this contract, six to eight vessels a year will come to the yard for scheduled and upgrading repairs.
The contracts are not expected to have any material impact on the consolidated net tangible assets per share and earnings per share of SembMarine for the year ending Dec 31, 2010.

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