Sembcorp Marine

Sembcorp Marine: Barclays: reiterate O/w, TP $6.20 from $6.50. Note that SMM to report results on 21 Feb, expect margins in the top quartile of peers, estimate an adjusted NP of $548mn, down 20% YoY. Its operating profit was affected by the lower-priced contracts signed in late 2010 and early 2011, and the downtime in some jack-up projects. Despite that, believe the co is on track to deliver a top-quartile margin of c14% relative to its rig/ship-building peer group. Trim 2012E-16E EPS by 4% pa on average; lowering TP to $6.20.