SembCorp Marine Acquires Sabine Industries In USA To Streamline Operations

Dec 31, 2007

The Board of Directors of SembCorp Marine (the “Company”) wishes to announce that the Company has acquired from PPL Shipyard the entire shareholding of Sabine Industries comprising Sabine Shipyard and Sabine Offshore Services, Inc in Texas, USA as part of its strategy to streamline its operations.

Located in the Sabine Pass, Texas, USA, Sabine Industries (renamed SembCorp-Sabine Industries, Inc) and Sabine Shipyard (renamed SembCorp-Sabine Shipyard) and Sabine Offshore Services, Inc. are located approximately one mile from the Gulf of Mexico, on the Texas-Louisiana border and one and half hours from Houston and minutes from Beaumont, Port Arthur and Orange, Texas.  It has immediate access to the Texas and Louisiana offshore drilling activities and owns a total land area of 223 acres. 

The total consideration of US$4 million for the 100 per cent equity interest is based on the valuation of the net tangible assets of Sabine Industries and is derived based on a willing buyer willing seller basis.  The acquisition will be funded from SembCorp Marine’s own internal resources.

Sabine Industries, acquired by PPL Shipyard in September 2005, will be planned and outfitted as part of SembCorp Marine’s overall strategy to facilitate and serve its USA customers in offshore rig repairs, refurbishment and rig building in the Gulf of Mexico region.

The acquisition is not expected to have a material impact on SembCorp Marine’s earnings per share and net tangible asset per share for the year ending December 31, 2007.

 

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For media & analysts enquiries, please contact:

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

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