Swiber

Swiber: Reported a 5.4% y/y rise in revenue to US$242.1m and a 13.7% increase in gross profit to US$37.1m in 2Q13. However, higher administrative, finance and other operating expenses contributed to a 72.5% fall in net profit to US$4.2m in the quarter. Earnings are generally lumpy by quarter due to project executions. 1H13 net profit rose 2.0% and accounted for close to 40% of our full year estimate, slightly below street expectations. Still, execution remains steady and the group has a US$1.2b order book with more work expected to be carried out in 2H13. Pending an analysts’ briefing later in the afternoon, OCBC maintains BUY rating but put fair value estimate of $0.86 under review.