Swiber

Swiber: Annouced good set of 1H11 results, which was in-line.
Rev at US$331.2m, +73.1% yoy, while net profit at US$24.5m, +9.4% yoy. 2Q11 net profit however fell 11.6% yoy due to lower gains from asset disposals and a rise in admin expenses. Gross Margins declined to 15.4% vs 21.7% previously.

Grp expects demand to pick up in Asia regardless of the slide in oil prices and volatility in fin mkts, and also announced it had won a US$30m contract from a major oil company in South Asia, which will see grp undertake platform installation services in the region beginning in the 4Q. Deal comes three days after it won US$82m of pipeline contracts.

Orderbook now stands at a strong US$752m, surpassing the US$720m in 1Q11. At current price, valuations are very compelling, with grp trading at 6.2x FY11E P/E vs historical average of 11.7x.