Swiber

Swiber: UOB maintains Buy (TP $1.45 lowered from $1.54) but expects lackluster 3Q10 results due to 1)US$3-4 mark-to-mkt loss on bonds. View remains positive on large contracts won from India’s ONGC and potential large contracts in SEA region, India and Middle East. Results are expected to show in 4Q10. TP of $1.45 was lowered due to enlarged share capital by 1.1% at current 641.6m shares…

Based on PE of 13x 2011F earnings, still below Swiber’s historical PE of 25-27x during 2003-09. The PE valued is above the sector long-term mean of 9.0x indicating analyst’s view of outperformance over sector. To note: Potential large contracts are in the US$500m to US$6b range compared to Swiber’s 09 net turnover of US$393.4m.