Sembcorp Industries (Sembcorp) delivered a strong performance in the first quarter of 2012 (1Q2012). Net profit attributable to shareholders of the Company (net profit) for 1Q2012 grew 11% from S$159.9 million in 1Q2011 to S$176.7 million, while turnover was up 21% from S$2.0 billion in the previous year to S$2.4 billion. Sembcorp’s main profit contributors, the Utilities and Marine businesses, accounted for 54% and 38% of Group net profit respectively. The Utilities business delivered strong profit growth with net profit up 61% to S$99.0 million in the quarter, driven mainly by solid performance from operations in Singapore. Marine’s 1Q2012 net profit contribution to the Group was S$68.7 million compared to S$91.8 million in 1Q2011.

Return on equity (annualised) for the Group was 15.8% and earnings per share amounted to 9.9 cents for the quarter. Economic value added was a positive S$117.1 million while cash and cash equivalents stood at S$2.8 billion.

Tang Kin Fei, Group President & CEO of Sembcorp Industries, said, “Sembcorp delivered a strong performance this quarter, with our Utilities business recording a 61% growth in net profit. Our acquisition of wind power assets in China will, upon completion, also serve to accelerate our growth in the renewable energy sector. At the same time, our Marine business secured S$3.0 billion worth of contracts this year, bringing its total orderbook to S$7.4 billion. Underpinned by resilient businesses, a healthy orderbook as well as a strong pipeline of projects, Sembcorp is well-positioned for sustainable growth.”

FY2012 Outlook

Utilities
Taking into consideration our Singapore cogeneration plant’s planned major maintenance, our Utilities business is expected to deliver a steady performance in 2012.

Through the execution of our pipeline of projects as well as the active pursuit of new growth opportunities, the business continues to be well-positioned to deliver long-term growth.

Marine
Our Marine business has a current net orderbook of S$7.4 billion with completion and deliveries stretching till second quarter of 2015. This includes S$3.0 billion in contract orders secured since the start of 2012.

The fundamentals driving the offshore and marine activities remain strong. However, competition remains keen for all segments of the business.

Urban Development
While the slowdown in the global economy may affect the pace of land sales, our Urban Development business is expected to deliver a steady performance in 2012.

Group
The Group, underpinned by resilient businesses and a healthy pipeline of projects, will continue to make every effort to position our businesses for sustained growth.

Highlights from Sembcorp’s 1Q2012 Financial Results
• Turnover at S$2.4 billion, up 21%
• Profit from Operations at S$286.1 million, up 4%
• Net Profit at S$176.7 million, up 11%
• EPS at 9.9 cents
• ROE (annualised) at 15.8%
• Strong 1Q2012 performance from Utilities

*Profit from Operations = Earnings before Interest and Tax + Share of Associates and JVs’ results (net of tax).
       

– END –

 For media and analysts’ queries please contact:

Ng Lay San (Ms)
Vice President
Group Corporate Relations
DID: +65 6723 3150
Email: ng.laysan@sembcorp.com

Melissa Yee (Ms)
Manager
Group Corporate Relations
DID: +65 6723 3326
Email: melissa.yee@sembcorp.com

ABOUT SEMBCORP INDUSTRIES
Sembcorp Industries is a leading energy, water and marine group operating across six continents worldwide. With facilities with over 5,600 megawatts of gross power capacity and over seven million cubic metres of water per day in operation and under development, Sembcorp is a trusted provider of essential energy and water solutions to both industrial and municipal customers. It is also a world leader in marine and offshore engineering as well as an established brand name in urban development.

The Group has total assets of over S$12 billion and employs over 9,000 employees. Listed on the main board of the Singapore Exchange, it is a component stock of the Straits Times Index, several MSCI and FTSE indices as well as the Dow Jones Sustainability Asia Pacific Index.

Note to Editors: Please refer to the company as “Sembcorp” (with “S” in upper case and “c” in lower case), or “Sembcorp Industries” in full. Please also note that “Sembcorp” is not an abbreviation of “Sembawang Corporation” but a brand name in itself, and it is therefore incorrect to refer to our company as “Sembawang”, “Sembawang Corporation” or similar.

The agreement signifies the development of the Singapore-Sichuan Hi-tech Innovation Park (HTIP). A groundbreaking ceremony was held today witnessed by Mr Lim Swee Say, Singapore Minister, Prime Minister’s Office and Singapore Advisor to the Singapore-Sichuan Trade and Investment Committee (SSTIC); Mr Liu Qibao, Sichuan Party Secretary; Mr Jiang Jufeng, Sichuan Governor and Sichuan Advisor to the SSTIC; Mr Huang Xinchu, Chengdu Party Secretary and Mr Ge Honglin, Chengdu Mayor.

Spanning 1,000 hectares, the HTIP will be a mixed-use work-live development that supports diverse activities to create a vibrant urban environment. The HTIP will focus on attracting modern, innovative and knowledge-intensive industries such as information technology, digital media, pharmaceutical research, precision engineering, environmental services, service outsourcing, banking and insurance.

The HTIP will be developed in phases with a start-up area of 300 hectares or six million square metres gross floor area of commercial, residential and industrial space to provide for corporate headquarters, incubator firms as well as research and design businesses.

The HTIP is located within Chengdu’s Tianfu New City central business district, a newly established national-level economic development zone in China. The HTIP is a major development for Tianfu New City as it will enhance the city’s urban and commercial functions. Chengdu is the national centre for software as well as a hub for high-end manufacturing and information technology. In addition, Chengdu and Chongqing are cities identified to spearhead the development of western China.

Ms Low Sin Leng, Executive Chairman of Sembcorp Development, said, “Chengdu is undergoing tremendous transformational growth and is the gateway to the central and western regions of China. We aim to provide an integrated urban solution and hope to attract Singapore companies and other high tech international firms to reach out to this populous and fast growing market.”

The HTIP is a commercially-driven project supported by the SSTIC. The SSTIC and International Enterprise (IE) Singapore, the government agency driving Singapore’s external economy, will continue to provide the necessary assistance and support for the project development, reinforcing the strong economic ties between Singapore and Sichuan.

Said Minister Lim Swee Say, Minister, Prime Minister’s Office and Advisor to the SSTIC, “The groundbreaking of HTIP marks a major milestone for the collaboration between Sichuan and Singapore businesses. This integrated development of modern services, modern living and modern manufacturing supports the drive towards an innovation driven economy. It will generate challenging and exciting opportunities for both sides, as well as attract global investors to participate in the growth of Sichuan and western China.”

- END -

For media and analysts’ queries, please contact:

Ng Lay San (Ms)
Vice President
Group Corporate Relations
Sembcorp Industries
DID: +65 6723 3150
Email:  ng.laysan@sembcorp.com 

Mary Ann Chan (Ms)
Senior Manager
Corporate Relations
Sembcorp Parks Management
DID: +65 6723 3976
Email:     maryann.chan@sembcorp.com
 
ABOUT SEMBCORP INDUSTRIES
Sembcorp Industries is a leading energy, water and marine group operating across six continents worldwide. With facilities with 5,600 megawatts of gross power capacity and over seven million cubic metres of water per day in operation and under development, Sembcorp is a trusted provider of essential energy and water solutions to both industrial and municipal customers. It is also a world leader in marine and offshore engineering as well as an established brand name in urban development.

The Group has total assets of over S$11 billion and employs over 9,000 employees. Listed on the main board of the Singapore Exchange, it is a component stock of the Straits Times Index, several MSCI and FTSE indices as well as the Dow Jones Sustainability Asia Pacific Index.

Note to Editors:
Please refer to the company as “Sembcorp” (with “S” in upper case and “c” in lower case), or “Sembcorp Industries” in full. Please also note that “Sembcorp” is not an abbreviation of “Sembawang Corporation” but a brand name in itself, and it is therefore incorrect to refer to our company as “Sembawang”, “Sembawang Corporation” or similar.

The Pacific Class 400 jack-up drilling rig is PPL Shipyard’s proprietary design. This design is well established and is an enhanced version of PPL Shipyard’s acclaimed and successful Pacific Class 375 design series, of which 27 units are now operating worldwide. The Pacific Class 400 rig represents the latest generation of high specification jack-up rigs that are capable of operating in water depths of 400 feet and drilling to depths of 30,000 feet. The rig’s maximum drill centre is cantilevered at 75 feet aft and it has a derrick hook load capacity of 1,500,000 lbs. The rig is equipped with full hotel services for a complement of 150 men on board in 1-man cabins and 2-men cabins. This unit is scheduled for delivery end July 2014.

Dr. Benety Chang, Deputy Chairman of PPL Shipyard said “We are very pleased that Perisai has chosen the Pacific Class 400 design as its maiden jack-up drilling rig design. We have complemented several companies in growing their rig fleet and in expanding their business into the offshore oil and gas sector. We hope to contribute to our partners’ long-term success and sustainable growth in the industry.”

“We would like to thank Perisai for their confidence in entrusting their first unit to PPL. The proprietary ownership of this design gives us the flexibility to customise turnkey solutions to suit our client’s and the field operator’s requirement as the needs arise.”

“This unit represents the 8th unit of the Pacific Class 400 series since the launch in 2010.”

En. Izzet Ishak, the Managing Director of Perisai Petroleum Teknologi Bhd said “The construction of the jack-up drilling rig represents a significant moment for the Perisai Group. We are excited by this new class of asset as it represents our entry into the offshore drilling segment specifically in Malaysia and broadly in the Asia Pacific region. This construction will provide our customers with access to a technologically advanced latest generation drilling rig. The rig’s high specification matches industry best standards with regard to, amongst others, water and drilling depths and load handling capacity of drill pipes. This, together with the extensive and illustrious history of PPL Shipyard, provides Perisai with added confidence as it enters into this new and exciting segment of operations.”

The contract is not expected to have any material impact on the consolidated net tangible assets per share and earnings per share of Sembcorp Marine for the year ending December 31, 2012.

About Perisai (L) Inc.

Perisai (L) Inc. is a wholly-owned subsidiary of Perisai Petroleum Teknologi Bhd, a Malaysia based upstream oil & gas service provider listed on the Malaysian stock exchange of Malaysia. The Perisai Group owns a fleet of strategic oil & gas vessels and facilities supporting the exploration, development and production phases of offshore oil & gas fields both in and out of Malaysia. The Perisai Group continues to focus on its area of strength by seeking continuing investments in value adding, earnings accretive, strategic offshore oil & gas vessels and facilities.

About PPL Shipyard

PPL Shipyard, a subsidiary of Sembcorp Marine, is an integrated rig design and rig building yard with a proven track record in the turnkey building and delivery of jack-up and semi-submersible rigs. To-date, the yard has built and delivered over 25 Pacific Class jack-ups in the last 6 years. The first Pacific Class 400 unit (Transocean Honor) was delivered in December 2011 to Transocean, the largest rig operator in the world. Currently Transocean Honor is operating in West Africa on a long-term charter.

For media and analysts’ enquiries, please contact:

Ms Judy Han
Senior Vice President
Investor Relations & Communications
Tel No : 65-6262 7203
Fax No : 65-6261 0738
Email : judy@sembcorpmarine.com.sg
Website : http://www.sembcorpmarine.com.sg

Sembcorp Industries (Sembcorp) today announces that its wholly-owned subsidiary, Sembcorp Utilities, has signed a sale and purchase agreement with The AES Corporation (AES) to acquire part of its power asset portfolio in China for US$85.5 million (equivalent to approximately S$106.7 million).

The acquisition includes a 49% stake in four wind power assets owned through AES Huanghua, AES Hulunbeier Wind Power Co., AES Xinba’erhu Wind Power Co. and AES Chenba’erhu Wind Power Co., as well as a 25% stake in a coal-fired power plant owned through AES China Corp. The AES Corporation is a global power company listed on the New York Stock Exchange (NYSE: AES).

Commenting on the transaction, Tang Kin Fei, Group President & CEO of Sembcorp, said, “This acquisition strengthens our global energy portfolio and provides a platform to accelerate Sembcorp’s growth in the renewable energy sector. As a responsible energy player, Sembcorp aims to have a portfolio of high efficiency thermal and renewable power generation assets including a growing component of low carbon capacity. With this acquisition, our renewable energy capabilities will now include wind in addition to biomass.

“We are excited about the growth prospects and immense opportunities that this acquisition will bring to Sembcorp. We now have our first wind power assets in China, an important foothold to tap into the fast-growing and largest wind power market in the world. At the same time, this transaction is set to further extend Sembcorp’s presence in China as an established energy and water player. With the inclusion of Inner Mongolia and Shanxi, we will have utilities operations in 11 provinces across the country.”

The wind power assets comprise three wind power plants in Inner Mongolia and one wind power plant in Hebei with a total gross power capacity of 247.5 megawatts. These wind power plants are currently owned through four 49%-owned Equity Joint Ventures with Chinese partner, Guohua Energy Investment Co. (Guohua). Guohua is one of the top wind power companies in China and is owned by Shenhua Group Corporation, a listed state-owned enterprise and the largest coal company in China as well as the largest coal supplier in the world.

As part of the transaction, Sembcorp will also acquire a 25% stake in a Cooperative Joint Venture, which owns, operates and manages a 2,100-megawatt coal-fired power plant in the province of Shanxi. The Cooperative Joint Venture expires in 2016.

The aggregate total of Sembcorp’s share of the net assets of the operating joint venture companies, based on the companies’ audited accounts and management accounts for the financial year ended December 31, 2011 (prepared using PRC GAAP), is RMB1,274 million (approximately S$252 million).

The offer price was arrived at based on bilateral negotiations with AES. Sembcorp will fund the acquisition through internal resources. The acquisition is expected to be accretive to earnings from the first year of the acquisition.

The table below summarises the interests acquired by Sembcorp.

Name of subsidiary to be acquired	Name of joint venture company (JV Co) owned by subsidiary	Effective interest in JV Co	Type of plant / Gross capacity	Location	Commercial operation date
AES Huanghua	Guohua AES (Huanghua) Wind Power Co.	49%	Wind power plant / 99MW	Hebei	Phase 1: 2009; Phase 2: 2010
AES Hulunbeier Wind Power Co.	Guohua AES (Hulunbeier) Wind Power Co.	49%	Wind power plant / 49.5MW	Inner Mongolia	2007
AES Xinba’erhu Wind Power Co.	Guohua AES (Xinba’erhu) Wind Power Co.	49%	Wind power plant / 49.5MW	Inner Mongolia	2010
AES Chenba’erhu Wind Power Co.	Guohua AES (Chenba’erhu) Wind Power Co.	49%	Wind power plant / 49.5MW	Inner Mongolia	2012 (February)
AES China Corp	Yangcheng International Power Generating Co.	25%	Coal-fired power plant / 2,100 MW	Shanxi	2002

The transaction is expected to be completed in the second half of 2012 upon the satisfaction of certain conditions precedent, including approval by China’s relevant authorities. This transaction is not expected to have a material impact on the earnings per share and net asset value per share of Sembcorp Industries for the current financial year.

None of the directors or substantial shareholders of Sembcorp has any interest, direct or indirect, in the above transaction.

- END -

For media and analysts queries, please contact:

Ng Lay San (Ms)
Vice President
Group Corporate Relations
DID: +65 6723 3150
Email: ng.laysan@sembcorp.com

Melissa Yee (Ms)
Manager
Group Corporate Relations
DID: +65 6723 3326
Email: melissa.yee@sembcorp.com

Sembcorp Industries (Sembcorp) today opens its new S$34 million woodchip-fuelled biomass steam production plant capable of producing 20 tonnes per hour of process steam, providing a sustainable and competitive solution to its customers. Located in Jurong Island’s Sakra district, the Sembcorp Woodchip Boiler Plant provides process steam to commercial customers on Jurong Island, using waste wood collected and processed by Sembcorp’s solid waste collection business.

With its integrated group expertise, Sembcorp has unique capabilities to manage the entire energy-from-waste value chain. Sembcorp’s solid waste management arm, the leading operator in Singapore, collects and recovers recyclables, timber, hardcore and fines from industrial and commercial waste as well as construction and demolition waste. By recovering waste wood meant for incineration and processing it into a resource – woodchip – to fuel the plant, Sembcorp creates value from waste and improves the competitiveness of industry on Jurong Island, while reducing greenhouse gas emissions.

The Sembcorp Woodchip Boiler Plant is also designed to the Building and Construction Authority’s Green Mark Gold standard, incorporating natural ventilation and lighting, solar power and the use of recycled building material. At the same time, it is highly automated to ensure safety and efficiency, while increasing productivity.

Expansion of energy-from-waste capacity

Looking ahead, Sembcorp will maintain its strategic focus on energy-from-waste solutions and grow its capabilities in the renewable energy sector. To this end, the Group has set a target to supply one-third of its Sakra customers’ steam demand using alternative fuel by 2014.

In line with this aim, Sembcorp is pleased to announce the expansion of the woodchip boiler plant with the development of a second boiler, which will have a capacity of 40 tonnes per hour of steam. Upon completion of this second phase in the second half of 2013, the facility will be able to produce a total of 60 tonnes per hour of steam. Together, both boilers are estimated to reduce carbon dioxide emissions by an estimated 70,000 tonnes a year.

In addition, Sembcorp will be developing two new energy-from-waste boilers on Jurong Island. The energy-from-waste boilers will utilise industrial and commercial waste collected and processed by Sembcorp’s solid waste collection business to produce 140 tonnes per hour of steam for existing customers. This facility, also to be located in Sakra, will increase Sembcorp’s supply of steam from alternative fuel and further enhance its competitiveness on Jurong Island.

When completed, the Sembcorp Woodchip Boiler Plant’s second boiler and the two new energy-from-waste boilers will increase Sembcorp’s energy-from-waste capacity by ten-fold.

Ng Meng Poh, Sembcorp’s Executive Vice President, Singapore and ASEAN (Utilities), said, “Our woodchip boiler plant is significant for Sembcorp in our journey as a vital partner to the industry on Jurong Island. It is also a step forward in our strategy to grow our portfolio of renewable energy assets, and in particular, to offer sustainable and competitive energy-from-waste solutions to our customers in Sakra. This solution provides an alternative economical source of energy for our customers on Jurong Island while leveraging synergies between our solid waste management and energy businesses.”

Sembcorp Industries (Sembcorp) is pleased to announce that the Group has made good progress in its integrated urban development and power projects in central Vietnam.

In a ceremony today witnessed by Their Excellencies, Singapore President Tony Tan Keng Yam and Vietnam President Truong Tan Sang, Sembcorp’s Vietnam Singapore Industrial Park (VSIP) joint venture was awarded the investment certificate by the People’s Committee of Quang Ngai Province (Quang Ngai PC) for its fifth VSIP project. The joint venture will invest a total of US$337.82 million in VSIP Quang Ngai. The estimated total equity of US$40 million will be funded through the joint venture’s internally generated funds. VSIP Quang Ngai will comprise a 600-hectare industrial park located within the Dung Quat Economic Zone as well as a 520-hectare site zoned for commercial and residential development near downtown Quang Ngai city. To kick-start the project, the joint venture will focus on a start-up area of 160 hectares for the industrial park and 100 hectares for commercial and residential development. In addition to Quang Ngai province’s strategic location, manufacturers located in the VSIP Quang Ngai will also be offered government-supported special economic zone incentives.

VSIP is a joint venture between Vietnam’s Becamex IDC Corporation with 49% shareholding and a Singapore consortium holding 51% share. Sembcorp Development, a wholly-owned subsidiary of Sembcorp Industries, holds 79.29% share in the Singapore consortium. The joint venture currently has two projects located in the southern economic zone of Binh Duong province, and two projects located in the northern economic zone’s Bac Ninh province and Hai Phong city.

At the same ceremony, Sembcorp’s wholly-owned subsidiary, Sembcorp Utilities, was granted an in-principle approval from Quang Ngai PC to develop a 1,200-megawatt power plant, to be located in Dung Quat Economic Zone in Quang Ngai province. Sembcorp is currently assessing the feasibility of this project, for which the Group had in January 2012 signed a memorandum of understanding with Quang Ngai PC to explore.

The investment certificate for VSIP Quang Ngai and the in-principle approval for the development of the power plant were presented to Low Sin Leng, Executive Chairman of Sembcorp Development and Deputy Chairman of Sembcorp Utilities, at the ceremony held at Hanoi’s Presidential Palace. The ceremony was held in conjunction with Singapore President Tony Tan’s first presidential visit to Vietnam.

Scheduled for delivery in the first quarter of 2013, the new rig will be built based on PPL Shipyard’s Pacific Class 400 series, an established proprietary design which represents the latest generation of high-specification jack-up rigs that are capable of operating in water depths of 400 feet and drilling to depths of 35,000 feet.  Equipped with technologically advanced drilling capabilities, the rig is specially customised for the intended project and has accommodation for 150 personnel with full hotel services. On delivery, this jack-up rig will be the most technologically advanced drilling rig operating in Qatar.

Dr Benety Chang, Deputy Chairman of PPL Shipyard said “We are pleased that Gulf Drilling International has chosen our latest proprietary Pacific Class 400 series, a proven design that has been well-accepted by the industry. Since the launch of this Pacific Class 400 series, five such jack-ups have been ordered with one unit delivered and operating in West Africa. Another rig will soon be delivered and is scheduled for deployment in Thailand.”

“PPL Shipyard’s ownership of the Pacific Class 400 design gives us the flexibility of design control and the ability to customise turnkey solutions to suit our customers’ unique project requirements. Our ability to deliver early and meet Gulf Drilling International’s commitments was an added attraction for this particular rig contract. We would like to thank Gulf Drilling International for their trust and confidence in PPL Shipyard and are committed to the timely delivery of this jack-up rig. On completion, the rig would proceed to work in Qatar.”

Mr Ibrahim Al-Othman, the Chief Executive Officer of Gulf Drilling International said “We are pleased to be placing this order with PPL. We are most familiar with the PPL rig designs and consider them to be very suitable for the requirements of our clients here in Qatar. PPL is well known as a high quality rig builder and we are pleased to have placed our first order with them. I look forward to adding another high-spec premium rig to our fleet and am confident that this rig will perform to our clients’ satisfaction.”

Barring unforeseen circumstances, Sembcorp Marine expects a positive contribution to its earnings from the contract. However, the contract is not expected to have any material impact on the consolidated net tangible assets per share of Sembcorp Marine for the year ending December 31, 2012.

About Gulf Drilling International

Gulf Drilling International is a world class drilling service provider, offering safe, efficient and innovative drilling services. GDI is listed on the Qatar Exchange and has Qatar Petroleum as its majority shareholder.

About PPL Shipyard

PPL Shipyard, a subsidiary of Sembcorp Marine, is an integrated rig design and rig building yard with a proven track record in the turnkey building and delivery of jack-up and semi-submersible rigs. To-date, the yard has built and delivered over 24 rigs of various designs and specifications in the last 6 years. It has delivered the first unit of the jack-up rig built based on the Pacific Class 400 design to Transocean, the largest rig operator in the world in December 2011. Currently the rig is working in West Africa on a long-term charter.

For media and analysts enquiries, please contact:
Ms Judy Han
Senior Vice President
Investor Relations & Communications
Tel : (65) 62627203
Fax : (65) 62610738
Email : judy@sembcorpmarine.com.sg
Website : www.sembcorpmarine.com.sg

The new rig will be constructed based on the Moss Maritime CS60 design – an enhancement of the Moss Maritime CS50E MKII harsh-environment ultra-deepwater semi-submersible rigs West Pegasus and West Leo which were delivered by Jurong Shipyard to Seadrill in March 2011 and January 2012 respectively. Delivery is scheduled no later than the first quarter of 2015.

This new ultra-deepwater harsh-environment semi-submersible rig will be built for a water depth rating of 10,000 feet with a maximum drilling depth of 40,000 feet. It will be an N-Class compliant 6th generation rig capable of maintaining position dynamically in deepwater and with thruster assisted mooring in shallow water in the North Sea and the Barents Sea. The rig is also engineered and winterized to carry out year-round drilling operations in such areas.

Mr Don Lee, Jurong Shipyard’s Senior General Manager of Offshore Division, said: “We are very pleased to partner with North Atlantic Drilling in their drive to be the leading harsh-environment drilling company with high-quality premium drilling rigs. This Moss Maritime harsh-environment ultra-deepwater CS60 rig is an enhancement of the two Moss Maritime CS50E rigs that Jurong Shipyard recently delivered to Seadrill. In addition, we have successfully delivered to Seadrill four units of turnkey ExD Friede & Goldman Millennium Class ultra-deepwater semi-submersible rigs and a Gusto MSC CJ70 harsh-environment jack-up rig."

“With offshore drilling moving towards deeper waters and harsher environments, we are confident of leveraging on these emerging opportunities with our proven track record in the building of high-specification ultra-deepwater rigs. We are fully committed to the timely delivery of this Moss Maritime CS60 harsh-environment semi-submersible entrusted to us while meeting stringent quality, safety, health and environmental standards. We will continue to build on this strong partnership to achieve win-win synergy going forward.”

Mr Alf C. Thorkildsen, Chief Executive Officer in North Atlantic Management AS and Chairman of the Board of North Atlantic Drilling Ltd, said: “We are pleased to have entered into this arrangement with our proven and trusted partner Jurong Shipyard to grow our fleet of harsh-environment rigs. The combination of historical high oil prices and significant exploration successes for our customers in mature as well as frontier areas has increased the demand for quality high specification rigs. This environment has created a dynamic investment opportunity for our company to grow its activities and create further value for its shareholders.”

The contract is not expected to have any material impact on the consolidated net tangible assets per share and earnings per share of Sembcorp Marine for the year ending December 31, 2012.

About North Atlantic Drilling
North Atlantic Drilling is a leading offshore harsh environment drilling company in which Seadrill currently holds a 74 percent ownership interest. The Company has following the announced harsh environment semi-submersible newbuild order, a fleet of six harsh environment units in operation and two newbuilds under construction. North Atlantic Drilling is currently listed on the N-OTC list in Norway, but has initiated the process of listing its shares in the US with a targeted commencement of trading during third quarter 2012.

About Seadrill
Seadrill is a leading offshore deepwater drilling company. The Company operates a versatile fleet of 63 rigs (including 15 rigs under construction) for operations in shallow to ultra-deep waters in harsh and benign environments. Seadrill is listed on the New York Stock Exchange and the Oslo Stock Exchange.

About Jurong Shipyard
Jurong Shipyard, a wholly owned subsidiary of Sembcorp Marine, is a leading shipyard offering integrated services and customised solutions in ship repair, shipbuilding, ship conversion, rig building and offshore engineering to a worldwide clientele.  Apart from its proven track record in the building and servicing of jack-up and semi-submersible rigs, Jurong Shipyard is also a global leader in the turnkey conversion of tankers to floating, production, storage and offloading units (FPSOs), floating storage tankers (FSOs) and floating production units (FPU). The yard has demonstrated its strong turnkey expertise in semi-submersible construction, with the successful deliveries of four turnkey Friede & Goldman ExD Millennium Class ultra-deepwater semi-submersible rigs (West Sirius, West Taurus, West Orion and West Capricorn), two Moss Maritime CS50E MKII harsh environment ultra-deepwater semi-submersibles (West Pegasus & West Leo) and a harsh environment Gusto MSC CJ70 150A jack-up rig (West Elara) to Seadrill. In addition to the new Moss Maritime CS60 harsh-environment ultradeepwater semi-submersible, the yard is also building a Gusto MSC CJ70 150A harshenvironment jack-up (West Linus) for North Atlantic Drilling Ltd and two Friede & Goldman JU2000E high-specification jack-ups (West Tucana and West Castor) for Seadrill.

For media and analysts enquiries, please contact:
Ms Judy Han
Senior Vice President
Investor Relations & Communications
Tel : (65) 62627203
Fax : (65) 62610738
Email : judy@sembcorpmarine.com.sg
Website : www.sembcorpmarine.com.sg