Swiber

Swiber: OCBC notes its too early to turn bullish. Swiber has been quiet on the order front - last order win was in Jun and YTD new orders total only US$315m vs last year's US$588m. In addition, oil px has been sliding and should this trend continue , more exploration and dev projects may be put on hold. For instance, Upstream notes Indonesia's Pertamina has cancelled its tender for the EPIC contract for the central processing facility and two well-head platforms for its West Madura project. Swiber was one of the contenders. With an order book of US$610m (60% of FY13 revenue) , players like Swiber with high overheads and thin margins are more susceptible to any downturn in sentiment. OCBC expects 3Q results to be lacklustre, lowers valuation from 0.45x to 0.4x FY14 e P/B, keeps Hold with lower TP of $0.49 (from $0.57)