Kreuz

Kreuz: uneventful 2Q13 results. Revenue was US$76.4m, +25% yoy, mainly boosted by an increase in revenue contribution from parent Swiber (accounting for 62% of revenue, from 43% in 2Q12). Net profit grew at a slower 10% clip to US$14.6m, due to slightly narrower margins and jump in income tax. Orderbook shrank to US$145m, down from US$200m in 1Q13. Mgt remains focused on the ongoing construction o fits new state-of-the-art Dynamic Positioned Multi-purpose Support Vessel, on schedule for expected delivery in 2015, which should complement Kreuz’s ability in performing deepwater SURF (subsea, umbilical, risers and flowlines) with ongoing shallow water projects. The stock trades at 6.6x annualized 1H13 P/E, 1.8x P/B.