STX OSV: Likely to continue it's recent upward climb after Co. announced it has secured another contract to design and build an offshore subsea construction vehicle with contract value of NOK600m (US$100.8m). Vessel is scheduled for delivery in Norway in 2012….
Grp has been seeing sharp gains recently on order wins, such as Monday's 8.2% rise on a platform supply vessel contract. Today's news likely to reinforce investors view that demannd for high specification vessels is only likely to rise alongside increased E&P activity, with STX OSV well-placed to ride this demand..
We note that order brings grp’s Orderbook to date at approximately Nok19.6b (US$3.3b) vs FY10 E Rev of Nok11.9b underpinning earnings visibility till 2012-13. Goldman sachs has TP of $1.54 on grp.
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