Cosco

Cosco: TL Offshore, an offshoot of SapuraCrest, says it has signed on for “pipelay-cum-heavylift" units at Cosco's Nantong Shipyard (50% owned by Cosco Singapore). There is no official announcement from Cosco yet.
The first, hull number 448, is set to cost US$110.25m with delivery between 3Q-4Q13. Hull number 449 costing US$116.75m will be delivered either at the end ‘13 or beginning ‘14. This puts the total purchase price at US$227m.
SapuraCrest did not mention any optional contracts.
Nor did the co did not specify if the units have been ordered against firm charter contracts, though SapuraCrest said they would "be slotted to perform marine construction contracts for major oil companies".
The Msian engineering and construction giant said it will finance the orders through a combination of cash and existing bank facilities.

While news is a positive following the recent dry spell in orders, Cosco still faces key challenges, including i) inability to capitalize profitably on its record offshore orderbook, with further provision risks and lower margins on lower priced contracts, ii) lackluster BDI suggests volume of new build contracts and ASP will remain depressed, and iii) speculative customers (eg Sevan Drilling) may face difficulty securing sufficient funds upon delivery.
Recall, Citi yday reiterated its Sell rating, with a significantly lower TP of $0.90 (from $1.50).