SembMarine’s dividend downtrend is far from over

SINGAPORE (Oct 27): Sembcorp Marine’s disappointing 3Q16 results has led DBS to reiterate its “fully valued” rating with a lower target price of $1.15 from $1.20.

In a Wednesday report, analyst Ho Pei Hwa notes that forecasts for FY16 earnings have been slashed 55%, with the interim dividend of 1.5 cents in 3Q16 raising concerns over the final dividend.

“We now expect Sembcorp Marine to declare a final dividend of 0.5 cent as a token of appreciation to shareholders,” says Ho.

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