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A global leader in marine engineering, we specialise in ship repair, newbuilding, ship conversion and offshore engineering. We have an established global presence with eight strategically located shipyards in Brazil, China, Indonesia and Singapore. With a combined docking capacity of 2.2 million dead weight tonnes (dwt), we have the largest ship repair and marine-related facilities east of the Suez.

To remain a world leader in ship repair, ship conversion and offshore engineering, we will:

Build a strong international network of shipyards through our Global Hub Strategy
We continue to strengthen our global presence with a network of strategically located shipyards. We have a substantial sphere of influence in the Asia-Pacific with four shipyards in Singapore, two in China, and one in Indonesia, while our shipyard in Brazil positions us closer to the offshore and conversion markets in the Gulf of Mexico, South America and the West African region. This global presence will enable us to continue to dominate the marine engineering market against the backdrop of increasing competitive pressure from low cost shipyards. We will also continue to explore the establishment of new hubs such as in the Middle East and the European regions.

Leverage the brands and reputation of our shipyards
Our shipyards operate as distinct brand names and have developed expertise in particular niches. We will capitalise on this strong branding, individual reputations and services to become a market leader across different segments of the global marine industry.

Focus on higher value and niche markets
We will continue to leverage our proven capability in handling complex vessels such as Very Large Crude Carriers (VLCC), container vessels, liquid natural gas/liquid petroleum gas tankers, chemical tankers and cruise ships, and will also focus on turnkey projects with high design, engineering and procurement content. We will also continue to grow our niche markets in the construction of container vessels, chemical tankers, conversion of Floating Production, Storage and Offloading (FPSO) systems and Floating Storage and Offloading (FSO) systems and the upgrading of semi-submersibles and jack-ups.

Enhance long-term partnerships and alliances
We continue to develop long-term alliance partnerships with our customers. These not only provide a stable baseload, but also help the ship owners and shipyards to further develop and improve on our systems and cost structures.

Despite continued economic gloom this year, SembCorp Marine (SembMarine) posted a record-high turnover of S$1.0 billion for the first time. This was an 18 per cent increase in turnover from 2001. This improvement was mainly due to the increased revenue from newbuildings and ship conversion contracts.

SembMarine’s Profit After Tax and Minority Interests (PATMI) contribution to the Group grew 14 per cent to S$57.3 million, making up 32 per cent of the Group’s PATMI. The improvement in profitability came from a healthy orderbook in ship conversion,
newbuilding and offshore.

Our orderbook carried over into 2003 was a healthy S$1.4 billion. In 2002, we secured a US$244 million contract with Brazil’s Petrobras Netherlands BV to convert a VLCC to an FPSO unit (P-50). On completion, the P-50 will be one of the world’s largest FPSOs.

Long-term alliances provide a stable clientele base which contributes on average 15 to 25 per cent of our ship repair revenues every year. In 2002, we secured new alliance partners when we signed the Favoured Customer Contracts with Norway’s Tschudi & Eitzen and USA’s Alaska Tanker as well as an evergreen alliance with BHP & T-Billiton of Australia. Sembawang Shipyard will exclusively retrofit and dry-dock vessels belonging to these three new alliance partners. We also launched the world’s first Ship Repair Alliance e-Collaboration Portal www.semballiance.com with Shell International Trading and Shipping Company.

We delivered two key projects this year.
A S$50 million contract, done in conjunction with SMOE of SembCorp Utilities, for the fabrication and integration of topside facilities onto an FPSO for the Shell Petroleum Development Company of Nigeria and a S$67 million Cableship ‘ASEAN Explorer’ for ACPL Marine, a leader in the submarine telecommunications fibre optic cable industry.

Our acquisition of Dalian Cosco Marine Engineering took effect in April 2002 with key personnel posted to the Dalian Cosco Marine Engineering yard in China.

Meanwhile, we streamlined our operations in Singapore. Atlantis Shipyard became a wholly-owned subsidiary, and was renamed Jurong SML. Merged with SML’s shipyard operations, Jurong SML will now operate as a mid-sized shipyard, giving us a single vehicle specialising in the repair and conversion of mid-sized vessels. We also secured the remaining 35 per cent interest in Karimun Sembawang Shipyard in Indonesia.

SembMarine divested its entire 25.5 per cent share in non-core Jurong Technologies Industrial Corporation for S$11.8 million, and disposed its 30 per cent interest in MR Tech. In December, we announced plans to unwind our cross-shareholdings in JPL Industries. SembMarine’s shareholding in JPL Industries is now 53.8 per cent while Jurong Clavon, a 50 per cent-owned associate of SembMarine, will cease to be a shareholder of JPL Corporation.

In October, the proposed privatisation of our marine engineering unit did not secure the requisite approval of SembMarine’s minority shareholders. SembMarine remains a 63.6 per cent-owned listed subsidiary of SembCorp Industries.

With our current orderbook, we expect to maintain our performance in 2003.

Ship repair will remain competitive with increasing competition from low cost centres such as China and Vietnam. However, an increase in freight rates and the more stringent requirements are expected to have positive impact on the market.

Market fundamentals for FPSO/FSOs remain strong despite short-term geopolitical uncertainties. Offshore deepwater rig utilisation remains strong particularly in West Africa, Brazil and the Asia-Pacific region. There is also a healthy on-going demand for the repair and upgrading of our existing rig fleets. Demand continues to be healthy in the niche market for product tankers, feeder container vessels and offshore supply vessels, while opportunities for the newbuilding of offshore drilling rigs remain bright due to the ageing fleets.

As of end-December 2002, our orderbook was S$1.4 billion at the Group level.

Sector Project
Client Completion Date
  Newbuilding Construction of 2 semi-submersibles
and 2 jack-ups and container vessels
448 GlobalSantaFe International Corporation and various owners 2003 and 2004  
  Ship conversion and offshore engineering Conversions to FPSO, FSO, pipe lay barge, etc 652 Various owners From 1st quarter
2003 to 2004
  Overseas Topsides and utilities modules 334 Halliburton Productos Ltda & KPSM End-2003  


Shipyard % Ownership Location
Facilities Activities
  Jurong Shipyard 100 Singapore 1,100,000 Berthing quays,
Ship repair,
ship conversion
offshore engineering
  Sembawang Shipyard 100 Singapore 710,000 Berthing quays,
Ship repair,
ship conversion and
and modification
of passenger vessels
  Jurong SML 100 Singapore 52,500 3 slipways Repair of small and
construction of mid-
sized vessels
  PPL Shipyard 50 Singapore 700 metres
water frontage,
water depth of
6.5 metres
Design and
construction of
drilling rigs
  Karimun Sembawang
100 Karimun,
65,000 Workshop and
engineering facilities
Ship repair,
steel fabrication
and piping works
  Bohai Sembawang
50 Tianjin,
85,000 Berths and workshops Ship repair,
onshore and
offshore engineering
  Dalian COSCO Marine
20 Dalian,
230,000 1,400 metre-long berths
and workshops
Ship repair,
offshore engineering
  Mauá Jurong 35 Brazil 60,000 Berths and workshops Shipbuilding,
ship repair,
topside fabrication,
conversion and construction of floating
production and
drilling units

Tan Kwi Kin
President & CEO SembCorp Marine


Key Facts


Competitive Edge



Revenue 1,006,897 850,064
PATMI 57,342 50,427
Note: Figures are taken at SembCorp Industries' Group Level for the Key Business