Kreuz

Kreuz: UOBK reiterates Buy, lifts TP to $0.88 from $0.68, after raising earnings forecasts and ascribing a higher PE multiple to reflect Kreuz’s consistent execution track record, improved balance sheet position and operating cash flow. UOBK met with mgt, with the following takeaways: - the group will ease the current capacity constraint by chartering in one additional third-party vessel in 2014, which may lift earnings by 5-15%. - Kreuz is sitting on an in-the-money option for a second deepwater subsea vessel, which it is likely to exercise in light of buoyant subsea activity - Kreuz end 1Q13 orderbook stands at US$200m, which will be recognized over 12-18mths.