STX OSV

STX OSV: Potential positive momentum on grp’s recently depressed share price, after grp announced a serious of contracts last night as below: 1) First contract worth Nok 600mil for an OSCV for Solstad Offshore. Delivery is scheduled for 2Q14. 2) Second contract is worth Nok 800mil, for an OSCV for Farstad. Delivery is scheduled for 1Q15. 3) Third contract has no disclosed value, but is for an OSCV for DOF Subsea. Delivery is scheduled for 1Q15. (Value approx Nok 500-800m) Total contract wins could add up to approx. Nok 2-2.5b. We note contracts are grp’s first contract wins for 2013 and the latest since grp’s last qtrly results, bringing total orderbook to approx. Nok15-16b, and underpinning earnings visibility for the next 2 yrs. At current levels, grp trades at a mere 4.6x P/E, which is compelling vs peers and grp’s status as the market leader in the high-specs OSV segment. OCBC maintains Buy with $1.52 TP.