STX OSV: OCBC note that Co. well-positioned to ride an upcycle. Last week, STX OSV announced that it has secured two contracts worth a total of NOK1.2bn (US$200m). As these contracts already form part of house total contract win projections for FY12F (NOK13b), are not making changes to our forward estimates.
Of noteworthy was the contract win for an Offshore Subsea Construction Vessel for DOF, which features an innovative moon pool design developed by STX OSV. Think this is further testament to the group’s ability to stay ahead of the curve for product development and garner customers’ orders. Meanwhile, optimistic on the OSV market given the improving industry fundamentals. Maintain BUY with fair value estimate of $2.25.
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