Swiber: Swiber clinched US$405.6m new contracts, which includes US$333m for engineering, procurement, installation and construction services in India from an existing customer, scheduled for completion by 2Q17.
The latest awards boost group's order book to US$1.8b.
Despite having revenue visibility over the next two years, Swiber's FY14 results suggested that the group may have dived in its bids in order to secure contracts, with a loss at the gross profit level.
In addition, we are extremely concerned on Swiber's rising costs and burgeoning debt, with net gearing of 1.75x and interest expense alone exceeding gross profit by 3.7x in FY14.
We opine that an epic turnaround is gravely required for Swiber to see any profits in FY15.
At the current price, Swiber is valued at 0.16x P/B.
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