SembMarine

SembMarine: Secured a contract worth US$674m for construction of 8 modules and module integration works for 2 FPSOs from Tupi, a consortium owned by Petrobras Netherlands, BG Overseas Hldgs and Galp Energia. The projects are scheduled for completion in 60 mths and will be deployed in the Tupi field in Brazil. All the work will be done in co’s Brazil subsidiary Estaleiro Jurong Aracruz. The contract comes with an option to construct 4 modules and modules integration for a FPSO to be exercised within 18 mths of the contract signing. SembMarine has secured YTD orders of $9.2b DMG maintains Buy with TP$5.70. House is of view that spending for offshore projects will remain robust given Brent and WTI crude oil prices are above oil majors’ invt hurdle rate of US$75-80 per barrel OCBC maintains Buy with TP$6.09