Swiber: UOB Kay Hian maintains Buy and raises TP to $0.98 from $0.87, despite below expectation 4Q11 results, which was due to higher corporate tax. Mgt note that the high corporate tax of US$17.9m in 4Q11 (91% effective tax rate) was due to withholding tax in specific projects in India, but has guided a 15% group tax rate going forward based on projects in its orderbook. Otherwise, pre-tax profit of $69.4m for 2011 was within expectation.
Going forward, house cite of a robust outlook on shallow-water E&P activities. With strong contract wins of US$756m in 2011, Swiber’s orderbook is at all-time high at above US$1b. Mgt is guiding a bullish outlook on future jobs. House forecast total contract wins of US$900m for 2012 and US$1b each for 2013 and 2014.
On a separate note, DnB Nor maintains Buy with $0.95 TP and CIMB maintains O/p with $0.94 TP.
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