SMOE of SembCorp Utilities (SembUtilities), secured its first
North Sea platform contract worth S$189 million with Maersk
to build an offshore oil production platform and living quarters.
SembCorp Marine (SembMarine) disposed of its 50 per cent interest
in Neptune Associated Lines to Neptune Orient Lines (NOL)
and concurrently increased its interest in Atlantis Shipyard
to 85 per cent by acquiring a 50 per cent equity stake from
Sembawang Shipyard of SembMarine signed a long-term contract,
entitled Favoured Customer Contract, with Tschudi & Eitzen
Holding of Norway. The contract commits the retrofitting and
dry-docking of Tschudi & Eitzen's owned and managed vessels
to Sembawang Shipyard for the foreseeable future.
SMOE delivered a S$100 million water injection platform for
Vietsovpetro Oil Company of Vietnam.
SembLog signed a Shareholders Agreement with Orix Corporation
and World Logi to form a joint venture to acquire the logistics
business of Footwork Express in Japan.
SITA Environmental Solutions (formerly Pacific Waste Management),
the Australian associate of SembCorp Waste Management (SembWaste),
was awarded Australias single biggest waste contract
worth approximately S$142 million. SembWaste holds a strategic
40 per cent stake in SITA Environmental Solutions.
SembMarine divested its entire 25.49 per cent interest in
Jurong Technologies Industrial Corporation.
We completed our S$346.5 million equity placement by way of
an underwritten accelerated book-building exercise. The placement,
which was 3.6 times subscribed, was made up of 213.9 million
new shares and 106.95 million warrants.
SembWastes subsidiary SembVISY Recycling launched its
pilot recycling programme, giving 4,000 Singapore households
free, user-friendly storage crates.
SembCorp Engineers and Constructors (SembE&C) secured
a S$141 million contract from Singapores Public Utilities
Board (PUB) to build the worlds largest sludge drying
system for its Changi Water Reclamation Project.
SembMarine acquired the remaining 15 per cent interest in
Atlantis Shipyard from
Singapore Technologies Marine and merged its operations with
SML Shipyards mid-sized vessel ship repair processes.
Atlantis was renamed Jurong SML which will operate as a mid-sized
shipyard specialising in the repair of small and medium-sized
SembLog formed a 50/50 joint venture company, SembCorp Network,
with Singapore Food Industries to provide total logistics
support and services to its clients in Singapore and the region.
SembCorp Gas (SembGas) jointly launched its Compressed Natural
Gas (CNG) pilot project to introduce CNG buses in Singapore
together with Singapores Ministry of the Environment
and SBS Transit. The SembGas CNG station on Jurong Island
is the first CNG station in Singapore.
SembWaste introduced an integrated enterprise portal that
centralises all its data in a single online resource. This
is the first of its kind among waste management companies
SES Engineering of SembMarine disposed of its entire 30 per
cent interest in MR Tech.
We reduced our stake in the Wuxi-Singapore Industrial Park
Development Company from 54.8 per cent to 38.5 per cent. Management
control of the industrial park was transferred to our Chinese
SembLog Citranusa, a 70/30 joint venture between Singapore
Offshore Petroleum Services and Indonesias Citra Tubindo,
celebrated the groundbreaking of its new offshore logistics
base in Batam, Indonesia. This new facility will provide logistics
and supply chain management support to oil and gas activities
We divested our remaining 20 per cent interest in Singapore
Computer Systems for S$53 million, continuing our programme
of asset divestment and capital reallocation.
Ho Ching stepped down as one of our Directors.
SembLog invested approximately S$18 million in Infolink Systems,
the parent company of United States-based Savi Technology.
Savi Technology is a leading provider of real-time solutions
for the management and security of supply chain assets.
Lim Joke Mui joined SembCorp Industries as our Group Chief Financial Officer.
SembLog formed a 51/49 joint venture company, SembCorp Logistics
(Taiwan), with Pacific Resources Technology Corporation to
provide supply chain management solutions to multi-national
corporations operating in Taiwan.
We increased our borrowing capacity through an enhancement
of our Medium Term Note Programme from S$500 million to S$2
Sembawang Shipyard of SembMarine and SMOE jointly completed
a S$50 million contract for Shell Petroleum Development Company
of Nigeria. The contract involved the fabrication and integration
of topside facilities for a Floating Production, Storage and
Offloading (FPSO) vessel, which will operate off Nigerian
SembE&C secured a second contract worth S$160 million
with PUB to build a sludge digester facility. This forms part
of PUBs Changi Water Reclamation Plant Project.
Jurong Shipyard of SembMarine delivered a S$67 million cableship
Asean Explorer to its owner, ACPL Marine.
SembMarines Jurong Shipyard signed a US$244 million
contract with Brazils Petrobras Netherlands to begin
conversion works on what will be one of the worlds largest
SembVISY extended its enhanced recycling programme to landed
residences in five municipal sectors in Singapore. This was
a follow-on to the success of the programmes plastic
recycling crate system that was introduced in selected housing
estates earlier in the year.
Shell International Trading and Shipping Company and Sembawang
Shipyard of SembMarine launched the world's first Ship-repair
Alliance e-Collaboration Portal www.semballiance.com
Wong Heang Fine joined SembCorp Industries as the new President
& CEO of SembE&C.
The proposed privatisation of SembMarine did not secure the
requisite approval of SembMarines minority shareholders.
SembMarine remains a 63 per cent-owned listed subsidiary of
We acquired 10,015,000 ordinary shares of S$0.10 each in the
capital of SembMarine from the open market at S$0.874 per
share. Following the acquisition, our shareholding in SembMarine
increased from 62.86 to 63.57 per cent.
We transferred our wholly-owned businesses RDC and SEMES to
SembVISY Recycling Materials Recovery Facility (MRF), a 60/40
joint venture between SembWaste and VISY Recycling of Australia,
was officially opened in Tuas, Singapore.
This is Asias first automated MRF.
SembLog Orient Caspian, SembLogs 65 per cent-owned offshore
logistics subsidiary, formed a 49/51 joint venture company
with the Azpetrol group of Azerbaijan to offer integrated
logistics services for oil and gas companies operating in
the Caspian Sea region.
Karimun Shiprepair & Engineering acquired the remaining
35 per cent equity stake in Karimun Sembawang Shipyard from
SembLog announced its acquisition of the remaining 49 per
cent equity stake in its Malaysian joint venture, SembCorp
Logistics (Malaysia), from listed Haisan Resources of Malaysia.
We announced that SembE&C was expected to incur a loss
of approximately S$127 million for 2002. The anticipated loss
was principally caused by difficulties in two projects
the Tuas View B2b land reclamation project and the Kranji
Deep Tunneling Sewerage System project.
SembWaste and its business units were renamed to embrace a
single unified brand image. SembWaste was renamed SembCorp
Environmental Management (SembEnviro) and SembEnviro subsidiary
Semac was renamed SembWaste. SembWaste is now the umbrella
brand for SembEnviros activities in the collection and
post-collection of waste, industrial and street cleansing
and consultancy activities.
SembEnviro announced that it will offer biological waste treatment
services, a move that will enlarge the companys scope
of environmental management capabilities.
We divested our 75 per cent interest in Singapore Food Industries
for S$262.6 million cash by way of a renounceable preferential
offer to our shareholders.