STX OSV

STX OSV: CIMB is advocating investors to pay attention to the stock, with potential sizeable orders worth up to US$530m or Nok3b soon. Industry publications report that Petrobas could award 7 Pipe Laying Support Vessels (PSLV) charter contracts worth abt US$6b, with some sources pointing 20th April as the cut off date for the announcement. CIMB exepct at least 2, 300-tonne PLSVs to be contracted to Technip-Norskan, with construction eyed at STX OSV’s new Brazilian yard, Promar. Yard prices for the two units could total US$560m, or NOK3bn, translating about 27% of house FY13 order target of NOK11bn. Deliveries are expected by late-2016. In any case, share price at the offer price of $1.22 offers limited downside to stock.