Samsung pledges to quit coal construction, but not before building Vung Ang 2 plant

first_imgSamsung pledges to quit coal construction, but not before building Vung Ang 2 plant FacebookTwitterLinkedInEmailPrint分享Bloomberg:Samsung C&T Corp. will finish two more coal projects before exiting the sector.Construction of the two ventures, the Gangneung facility in South Korea and the Vung Ang 2 project in Vietnam, are scheduled to be completed in 2023 and 2024, respectively. The pledge to exit the coal industry is “unprecedented” for a non-financial firm in South Korea, the company said in a statement.The de-facto holding company of the Samsung empire has faced growing criticism over its involvement in coal amid mounting global pressure to halt use of the dirtiest fossil fuel. Activist climate investors expressed concern Samsung C&T remained committed to the two projects.Global investors are increasingly voicing concerns over the risks associated with South Korea’s overseas coal financing as the state-owned Korea Electric Power Corp., known as Kepco, continues to approve plans to invest in new projects. BlackRock Inc., the world’s biggest asset manager with a stake in the utility, urged the company to provide clear strategic rationale for its investment in new plants in Vietnam and Indonesia.Kepco’s board of directors approved a $200 million investment in the Vung Ang 2 project earlier this month. A joint venture between Samsung C&T and Doosan Heavy Industries & Construction Co. will be in charge of engineering, procurement and construction for the project, a Kepco spokesman said Oct. 6.Samsung C&T said its trading arm will also gradually exit from all coal-related businesses once its existing contracts terminate, while seeking to expand its business into LNG and renewables. The company will completely withdraw from the Gangneung project after selling all of its 29% stake, which it can do it three years after commercial operations begin in end-2023.[Heesu Lee]More: Samsung construction arm to ditch coal after 2 more projectslast_img read more

Continue reading

Noteholders Taking Over Bibby Offshore from Bibby Line Group

first_imgBibby Offshore has reached an agreement on the recapitalisation of its balance sheet with noteholders who hold 80% of the £175 million 7.5% senior secured notes due June 15, 2021 issued by its subsidiary Bibby Offshore Services. The terms of the recapitalisation should result in the Group having a debt-free balance sheet with an equity injection of £50 million to enable it to consolidate and expand its position within the offshore inspection, repairs and maintenance and construction markets.At completion of the transaction, Bibby Line Group Limited (BLG) will transfer its entire ownership in Bibby Offshore to the Group’s noteholders.Howard Woodcock, chief executive of Bibby Offshore, said:“This transaction will result in significant investment flowing into the business and will provide the Group with an excellent and robust financial platform from which to continue to weather current market conditions and to capitalise on future opportunities within the offshore services market as it improves over the medium term. The elimination of our debt service burden, when taken together with the benefits of our cost-saving initiatives, will position our business well to maximise cash flow through the current market downturn.“We look forward to continuing to provide a high quality, responsive service safely to our customers. We would also like to thank our customers and suppliers for the loyalty and patience they have shown whilst we have worked to complete this transaction, our existing shareholder BLG, for its cooperation and financial support to date, and our noteholders who have agreed to make a significant financial investment in the Group in order to support the business moving forward.”last_img read more

Continue reading