Cosco

Cosco: has secured a US$370m contract from a European customer to construct an FPSO unit with storage capacity of up to 400k bbls of oil. Delivery is scheduled for Jun ‘15. The customer is believed to be Dana Petroleum of UK, and the FPSO could be used for devt of its US$1.6b Western Isles project in the North Sea. The FPSO is a Sevan Marine-design cylindrical FPSO. With this new contract, YTD contract wins should reach ~ US$1.6b. Cosco was previously hopeful of securing about US$2.0b for FY12F. Maybank KE maintains its Sell call with TP $0.73, on lower than expected order wins, weak shipbuilding outlook and low profitability on offshore projects.