Swiber

Swiber: Swiber marked its first foray into West Africa with a US$710m award from a Houston-based O&G company, which also helped shore up its depleting revenue visibility. Swiber will provide engineering, procurement, construction, installation and commissioning services for an offshore field development project in West Africa, which is expected to commence in 1Q15 and target for completion in mid-2017. This bumps up order book from an estimated US$483m to US$1.2b, providing revenue visibility to over three years, following a 6-month drought of new orders. Maybank-KE estimates that despite the new contract, Swiber may still record a marginal loss for FY15, aside from potential execution risk in a new market. At $0.29, Swiber is valued at 0.24x P/B, compared to its 5-year average of 0.81x P/B.