SMM

SMM is expected to achieve initial recognition for the first Sete Brasil drillship in 4Q12, contributing to their expectation of higher revenue for the quarter. Concurrently, up to 4 jackups and 2 semis are due to reach initial recognition stage within the 2 quarters, providing further boost to the topline. House anticipate operating margins of about 15.3% in 4Q12, and overall FY12F operating margins would then be about 13.9%. Maybank also expect final and special dividends of 15¢/share, bringing full-year dividends to 20¢/share.