Outlook brightens at Sembcorp’s twin engines of growth

This includes two 1,320MW thermal plants in China and India.

Meanwhile, Sembcorp’s marine orderbook stands at $4.7 billion. The stabilisation of crude oil price would be positive for the marine segment, which depends heavily on development capex spending.

Although the marine segment secured only $320 million of new orders in FY16, RHB expects FY17 to be a better year.

“We expect this segment to secure $1 billion of new orderbook in FY17 coming from floaters, offshore platforms and non-drilling solutions. We also expect about 30-40 development projects to be awarded in FY17 compared to six in FY16,” says RHB.

Shares of Sembcorp are down 9 cents at $3.27.

(See also: Sembcorp’s 4Q earnings more than double to $147.5 mil)