Swiber

Swiber - Note that its associate company Vallianz (29%) has had a recent stellar run, which could have prompted some investors to revist Swiber. Apart from that, latest news was in Nov, where Swiber reported 3Q13 net profit of US$7.7m (+4.5% y/y) and revenue of US$274.2m (+3%), with bottom-line coming in at the lower end of consensus estimates. Going forward, Swiber notes that oil prices are expected to remain at a sustainable level, which will lead to continued expenditure by the major oil and gas companies. The group will remain prudent in managing its operations and maximise cost efficiencies to provide value added solutions to its customers. With regard to the proposed divestment of its entire 57.5% stake in Kreuz, management reiterates that its expects to book a net disposal gain of ~US$90.6m. The cash proceeds of US$256.2m will be used as working capital to fund the operations of its core businesses and to undertake future business expansions, acquisitions and new investment opportunities. Swiber’s orderbook of ~US$900m is expected underpin earnings visibility over the next year.