ASL Marine announced it has secured new shipbuilding contracts worth about S$55m for 30 vessels, comprising 2 units Azimuth Stern Drive Tugs, 1 unit pipe-lay barge and 27 units cargo barges. The 2 units of Azimuth Stern Drive Tugs are scheduled for completion by the 1Q12 while the barges are scheduled for progressive deliveries by the 1Q11.
We understand that revenue from these new shipbuilding contracts will be recognised progressively over the contract period, which is based on the % of completion method.
These latest order wins are expected to boast its FY11 (Jun YE) earnings. The stock currently trades at less than 6x forward PER, based on Bloomberg estimates.
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