STX OSV

STX OSV: Strong order momentum continues, in-line with grp’s guidance of a strong pipeline of orders going forward. Grp announced contracts for 2 platform supply vessels (PSVs) for Island Offshore, amounting to approximately NOK500m in total. Vessels delivery are scheduled for 4Q13 and 2Q14 respectively. We note that latest orderwins brings’ grp’s Ytd order win to approximately, Nok 7.3b and current orderbook to approximately Nok 19-20b, which bodes well vs FY11 Orderwins of Nok 11.1b and yr end orderbook of Nok16.7b. Going forward, grp has maintained margins to remain stable, with an expected Ebitda Margin of 11-13% going forward. Majority of street remains positive on stock with 13 Buy Calls and 2 Hold and a Mean TP of $1.89.