Sembcorp Marine (SMM) will see an immediate impact to its balance sheet following its deal with Borr Drilling, say analysts.
“The sale will see SMM’s net gearing fall from 133% as of the second quarter of 2017 to about 76% by the end of 2018,” said UOB analysts Foo Zhi Wei and Andrew Chow.
The duo says the deal also positions the Singapore offshore yard group as one of the first few yards to have almost all their stranded assets taken off the balance sheet.
