Cosco

Cosco: halt to be lifted at 3pm.
Its 51% Cosco (Nantong) Shipyard secured a contract with Seadrill to construct a self erecting tender drilling rig valued at US$75m, excluding owner furnished drilling eqpt. The rig is capable of drilling at 6500ft and up to a drilling depth capacity of 20,000 ft.
This is the last option at Seadrill to be exercised. Seadrill now has 4 rigs on order with Cosco.

Positive that the latest rig value at US$75m is ~13% higher than Seadrill past 3 rig orders (announced Apr ’11 and Feb ’11), priced at US$65-66m each. The higher rig pricing, along with Cosco’s gained experience may help lift future margins.

The stock trades at 17.6x P/E.
The stock remains a favorite Sell on the Street, with 20 Sell and 2 Hold calls, prior to this latest announcement. Consensus TP is $0.81.