STX OSV

STX OSV: Co. just completed investor’s roadshow. Sees a faster-than-expected recovery in the North Sea and recent Farstad’s two AHTS orders with STX OSV have broken an 18-mth dry spell when no large AHTS orders had been placed. With Farstad deemed as an early mover, there could be comparable AHTS orders as owners seek to capitalise on future demand.

Going by project negotiations, order pipeline should be diversified and we could hear of a variety of orders including AHTSs, OSCVs and other specialised vessels (icebreakers, coast-guard and fishing vessels) vs the series of PSV orders announced over the last 18 months. CIMB maintains Buy and lifts T to $1.88 on back of margin improvements and a strong orderbook.