Swiber

Swiber: (S$0.205) Clinched US$133m EPIC contract
Swiber has added a new engineering, procurement, installation and construction contract worth USD133m from a repeat customer, lifting its orderbook from US$1.8b to ~US$2b.

Maybank-KE believes that the contract should be from India's Oil and Natural Gas Corporation, its third from the client this year.

The project is expected to be completed by 2Q16.

Order win momentum has been very strong for Swiber but we reiterate margin risks for its new project take-ups.

Recall, industry watchers highlighted that Swiber's project bids were at least 69% below competitors', a signal that the company may have sacrificed its margins in desperation to bag contracts.

At $0.205, Swiber is valued at forward P/E of 75.4x and 0.22x P/B.