Cosco: A2SEA, a 51/49 JV by Danish energy giant Dong with Siemens Wind Power, has penned a US$155m deal to build a single wind turbine installation vessel at Cosco Nantong shipyard (50/50 held by Cosco, and its 51% subsidiary Cosco Shipyard Group). This is the 2nd jackup vessel which Cosco will be building for A2SEA.
Cosco’s order price compares with Keppel’s US$220m contract from Seafox to build a new wind turbine installation vessel back in Jul 2010.
The latest newbuild will hit the water in 2014. Although it has been ordered on speculation, A2SEA said it is already hunting charter coverage which will definitely see it work in the northern Europe offshore market.
In addition, A2SEA has penciled another 1-yr option for an identical vessel at Cosco Nantong.
This order comes after Thursday’s announcement that Cosco Shipyard Group will build 4 Platform Supply Vessels worth >US$105m for an American shipowner.
The stock trades at 18.7x P/E, 2x P/B.
The overwhelming bearishness from the Street have at times led to buying opportunities. There are 19 Sell calls, vs 1 Buy and 2 Holds. Consensus 12mth TP is $0.80.
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