Its net debt to equity ratio enhanced to 0.26 times from 0.53 times.
Sembcorp Marine declared that its net debt to equity ratio improved to 0.26 times from the ratio of 0.53 times due to cash collections made in the fourth quarter of 2022.
Whilst its proposed merger with Keppel O&M is still in process, Sembmarine said the improved numbers will be used to “pay payables and other working capital needs” for this fiscal year.
It also addressed comments that the company is fearful of its death knell if the merger fails.
“Such comments do not capture the full picture presented in our Circular. Shareholders are advised to read in full the Company’s Circular to Shareholders. Our Circular presented a balanced position on the potential consequences should the Proposed Combination not proceed,” Sembmarine said in a statement.
Sembmarine proved its point, saying that part of the circular on the merger shows that if the proposed combination does not continue, the entity can continue its normal operations.
“The risks of operating as a standalone entity are also highlighted for transparency,” read the statement.