Tuesday, August 2, 2011

SembCorp Marine

SembCorp Marine: Grp has confirmed another US$444m worth of contracts, with Noble Corp exercising its option for 2 additional jackups that were agreed upon in Dec10. In addition to this, Noble has secured an additional 2 more options to replace this, under the same terms and conditions. Recent orders have seen Noble Corp ordered 6 rigs from SembMar, with options to construct another 2.

We note that while new order flows have been generally quiet over the past two mths, this latest contract affirms the positive long term outlook for SembMar, with YTD contracts secured at US$2.6b and current orderbook at S$7b. Kim Eng maintains Buy recommendation with $6.66 TP and RBS Maintains Buy with $7.00 TP.

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