SMM

SMM: BNP highlights dwindling market share (16% in 2011-13 ytd, vs 27% during 2004-10), with Chinese and Korean shipyards placing pressure in the low end and high end respectively. BNP also expects Petrobras-related drillships to account for 22-31% of revenues in 2014-15, negative for overall blended operating margins. Net order book is at record of $13.5b, which extends to 2019. However, new building projects are likely to have lower margins compared to repair/conversion work. BNP maintains Hold with TP of $4.17