Kreuz: DnB Nor note that the 70m shares placement, which comprises of 20m vendor shares from Kreuz's CEO as well as 50m new shares, increases the free float of Kreuz from 15% to 26%. Argue that this placement is likely to spur increased investor interest in the firm, given that both the macro and micro perspectives of the company remains bright.
Overall, believe this year could prove a brighter year on the back of strong subsea tendering outlook. Specifically, look forward to news regarding major contract work wins such as ONGC's Pipeline Replacement Project 3 which house believe Swiber is well placed for. Kreuz remains well positioned to take on some of the IRM related work from its parent Swiber. Reiterate BUY recommendation but revise down DCF backed TP from $0.45 to $0.44 after factoring in the shares that were issued.
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