SMM

SMM: Sembcorp Marine (SMM) secured two contracts worth $222m, which includes a design and build contract for an offshore substation platform and a repair and conversion contract of a VLCC into a FPSO vessel. The platform will be built for Dudgeon Offshore Wind Farm, granted by Siemens Transmission & Distribution, while the repair and conversion is part of the TEN Development Project from MODEC Offshore Production Systems. The new contracts bring SMM’s year-to-date contracts secured to $3.9b, on track to beat consensus' full year expectations for between $3.5b and $4.0b of order wins. We note that sentiment on SMM has been turning positive again, with at least two research houses upgrading the stock to a Buy rating last week.