Swiber

Swiber: 3Q13 revenue edged up 3% to US$274.2m, net profit advanced 4.5% to US$7.7m, as a tripling in share of profit from associates to US$15.9m helped offset the jump in admin expenses to US$17.2m (+33%). Revenue was driven by growth in the SE Asia segment, while gross margins remained flat at 14.2%. Associate contribution was likely partially lifted by the strong contribution from Vallianz, which posted a surge in 3Q13 net profit to US$2.1m from US$0.1m y/y. Mgt remains confident about the strong outlook for the offshore oil and gas industry, and reiterates its focus on the proposed disposal of its entire 57.5% stake in Kreuz for $0.80 per Kreuz share, which is expected to net a disposal gain of US$90.6m. Based on the $0.67 last close, the counter trades at an attractive 10.3x annualized 3Q13 P/E, 0.6x P/B.