Swiber

Swiber: Reported a good set of 4Q10 and FY10 Results which were in-line, with 4Q10 Rev at US$155.9m, +56.7%YoY, while Net Profit at US$8.5m, vs a Net Loss of US$6.5mYoY. Result brings FY10 Rev to US$469.7, +19.4%YoY and Net Profit at US$37.3m, +7.4%YoY. Gross Margins also expanded YoY with FY10 Margins at 21.9% vs 14.3% in FY09…..

Going forward, grp remains confident on prospects, tipping main operations in South East Asia and South Asia to benefit from increased activities of oil companies attracted by the region’s relative political stability and growing domestic demand…

Houses are currently reviewing FY11-12 EPS forecasts and TP pending an update with
management in the post results briefing later today. We note that at current price, valuation appears fair, with grp trading at 10.9x FY10 P/E, vs peers average of 12x and historical average of 11x.