SMM

SMM: announced 3 contract wins worth a total of $130m in value. The first contract is for the repair and upgrading of FSO Palanca, awarded by Sonangol Pesquisa. The other 2 contracts are for the life extension of 2 LNG carriers, awarded by North West Shelf Shipping Serivce Co. FSO Palanca would be in Sembawang Shipyard for the upgrade in Aug ‘12, while the 2 LNG carriers are scheduled to enter Sembawang Shipyard in Jun and Sep this year respectively. The contracts are small, but are reflective of the continued order momentum in the O&M space. Ytd orders are $3.1b, vs $3.9b for the whole of FY11. SMM continues to be one of the top Street picks with 22 Buys and 4 Holds, and TP btwn $4.40 – 7.