SembCorp Ind

SembCorp Ind: Positive 2Q results. 2Q rev at $2.7b +23.2% yoy with net profit at $190.7m +8.9% yoy. For 1H11 net profit was up 41% yoy with Utilities performing better than expected, turning a profit of $194m for the half on additional gas sales and contribution from Salalah IWPP. Mgmt has revised its guidance and is now expecting better performance in FY12 despite its Sg cogen plant’s major maintenance. Further projects include its desalination plant in Fujairah by 2H14. 1H Revenue from Marine was higher 30% yoy but saw net profit contribution fall 15% yoy due to initial lower margin from new design rigs. This was offset by higher interest income from deferred payments from customers. Current orderbook for Marine business stands at $6.6b Deutsche maintains Buy with TP$6.80 based on SOTP for SembMarine, Gallant and 12x P/E for Utilities business. UOB upgrades to Buy with TP$6.20 from prev TP of $5.20 on better than expected utilities results.