Swiber

Swiber: Likely contract win of US$200m According to Upstream, Swiber’s Indonesian unit, PT Rajawali Swiber Cakrawala (PTRSC), has won a contract worth close to US$200m linked to ConocoPhillips’ South Belut subsea development in Indonesia. OCBC however estimate the parent’s share of the contract to be much lower, as Swiber recently divested a 23% stake in PTRSC. Note that group has been successful in clinching contracts, which have generally provided short-term support on the share price but have yet to reverse its longer-term decline. However, estimate Swiber’s order book has exceeded US$1.7b which provides greater earnings visibility. House tweaked estimates to incorporate contract wins target of US$950m for this year, bumping up our fair value estimate to $0.63 (prev. $0.61), although house maintains Hold.