Fears of a massive cost overrun on a potential SGD 2.6bn ($1.8bn) newbuilding project may have been behind Singapore Technologies Engineering’s decision to sell its US shipyards, say analysts at Nomura.
On Monday the company announced plans to dispose of VT Halter Marine and ST Engineering Halter Marine and Offshore (STEHMO) to Bollinger Shipyards for $15m.
ST Engineering said the disposal comes following a “regular portfolio review and rationalisation to ensure that it focuses on businesses that are strategic and which yield higher returns”.
