STX OSV

STX OSV: Announced 1Q12 results which were broadly-inline but at the lower end of estimates. Rev at Nok2.8b, -12% yoy and -9.6% qoq, while net profit at Nok270m, -13% yoy and -57.8% qoq. Ebitda Margins normalized to 14% vs 13.8% yoy and 28.2% qoq. Operating rev were slightly lower yoy due to normal fluctuations in the project portfolio, and amounted to NOK 2,811 million, while grp’s Ebitda margins improved yoy on back of continued stable operations, efficient project execution, and successful delivery of vessels. During the qtr, grp secured 4 new vessel orders amounting to NOK 2,342m, bringing STX OSV’s total order book to 53 vessels worth NOK 16.0b, underpinning earnings visibility till 2014-15. Going forward, grp note that strong mkt fundamentals are expected to support growth, especially in the subsea support and construction segment. Add that charter rates for large AHTS have continued their climb, underpinning demand in this segment. Remain confident in ability to seize opportunities in a mkt upturn, and will continue to invest in technology to reinforce competitive edge. Grp’s overall fundamentals remain strong with grp in a net cash position of Nok2.8b. Ratings as follow: DBSV Maintains Buy with $2.00 TP Goldman maintains Buy, pending analyst conference.