SembMarine: -1.7% at $4.76, extending Fri's 3.8% fall, as prospect of missing out on Petrobras 28-rig contracts continues to weigh. Concerns come after outcome of Petrobras tender exercise disclosed Friday, showing SembMarine among 1 of higher bidders….
Merrill Lynch however remains hopeful. Note that the selldown in SembMarine's share price is unwarranted, as the jury is still out on the total number of rigs that Petrobras wants to build. Cite that probability of success for SembMarine reasonable as channel check shows Petrobras may award more than 28 rigs in total….
Adds, prospects for rig-building sector not just about Petrobras' orders, but a multi-year cyclical upturn that was first driven by the demand for higher-specification rigs, and then subsequently by the supply case for replacement of older rigs. 50-day moving average, last at $4.52, eyed as near-term support.
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