Rigbuilders: Sete Brasil saga "about to get very ugly"
Industry insider cited that the Sete Brasil saga is "about to get very ugly", with FX losses eroding profits of Sete's vendors, whom have not receive payment in over a year.
Info from: https://sg.finance.yahoo.com/news/sete-brasil-saga-very-ugly-024000576.html
- Contract payment rates previously locked in at 1.75 USD/BRL; spot at 3.66 USD/BRL.
- Both rigbuilders' cost base in USD or EUR.
- Significant 40-50% cut in Keppel Corp & Sembcorp Marine's combined orderbook of $10-11b should Sete goes bankrupt.