[SINGAPORE] Shares of Sembcorp dropped on Friday (Mar 14) morning after a deal inked by one of its subsidiaries to import natural gas from Indonesia fell through.
At 10.11 am, the counter fell by 4.9 per cent or S$0.30 to an intraday low of S$5.79, with 3.1 million securities changing hands. The last time it traded at such levels was February 2024.
The share price later eased back up to S$5.84, still down by 4.1 per cent or S$0.25, at 10.46 am, with 3.4 million securities having been transacted.
This comes after news broke on Thursday that the deal inked by a Sembcorp subsidiary to import natural gas from Indonesia fell through due to failure to obtain regulatory approval.
The agreement, first announced in September 2023, was between Sembcorp Gas, West Natuna Exploration, Empyrean Energy and Coro Energy Duyung to import up to 111 billion British thermal units per day of piped natural gas from the Mako gas fields in Indonesia.
Gas delivery was anticipated to commence from 2026, but the deal did not obtain regulatory approval in Indonesia.
Shares of Sembcorp Industries closed 0.7 per cent or S$0.04 higher at S$6.09 on Thursday.
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