Seatrium (formerly known as SembMarine)

[winston]

Not vested. From CIMB:-

SembCorp Marine Ltd - Revival of interest

Upgrade from Neutral to Outperform; higher target price of S$5.23 (from S$4.30),
still based on blended 15x CY12 P/E and DCF valuations.

Sembmarine has just secured US$384m worth of contracts for two premium jack-up rigs with options for another four from Seadrill. This brings YTD order win to about S$2.3bn.

We upgrade our non-Petrobras order assumptions to S$3.5bn for 2010 and S$4bn for 2011-12.

We continue to keep our Petrobras order expectation of about S$6.9bn for 2011. Following our adjustments, our earnings estimate rises by 10% for FY12.

We believe its recent order momentum is an indicator of revived interest in the rig and drillship market.

We upgrade the stock to Outperform, expecting catalysts from:
1) stronger-than-expected non-Petrobras orders; and
2) margin expansion.

[winston]

Not vested. From DBS:-

PE 14; No EPS growth ?

Maintain BUY, TP raised to S$5.25.

Our FY10-12 earnings forecasts are raised by 1-8% to account for
1) slight adjustment to FY10 revenue recognition schedule, and
2) higher FY10 order wins assumption.

Our SOTP-based TP is raised to S$5.25 as we roll forward our valuation to blended FY11/12 PE (prev FY11 PE) to better capture orderbook visibility ahead of more contract
wins, earnings recovery, and expected Petrobras orders.

http://www.remisiers.org/cms_images/res ... y_DBSV.pdf

[winston]

Not vested

SEMBCORP MARINE - Sembcorp Marine, the world's second largest rig-builder, on Thursday reported a doubling in third quarter net profit, helped by a write-back of S$53 million.

The company, owned by Sembcorp Industries , posted a net profit of S$296 million for the quarter ended September, up from S$145 million a year ago.


Source: Reuters

[winston]

Not vested

Sembcorp Marine , the world's second largest rig-builder, may be in focus after it said it has signed a $195 million contract to sell a jack-up rig to drilling contractor Transocean .


Source: Reuters

[winston]

Not vested

RESEARCH ALERT-Citi cuts Sembcorp Marine to "hold" from "buy"

SINGAPORE, Nov 19 (Reuters) - Citigroup has downgraded Singapore's Sembcorp Marine , the world's second-largest rig-builder, to "hold" from "buy" but raised its target price to S$5.60 from S$4.60.

STATEMENT: Citi has downgraded its rating for Sembcorp Marine as its valuations have become less attractive after its strong rally.

"Our earlier upgrade to buy was premised on orderbook returning, and we believe share prices at this level have already factored in strong wins," said Citi in a report.

However, Citi has raised its 2010 earnings per share estimate for Sembcorp Marine by 21 percent to S$0.37 and by 9 percent to S$0.28 for next year, citing faster delivery schedule and strong third quarter earnings.

The 2010 earnings include a one-time gain from the settlement of a longstanding dispute over foreign exchange losses.

Shares of Sembcorp Marine rose 0.59 percent to S$5.10 at 0228 GMT, and have gained about 38 percent so far this year.


Source: Reuters

[winston]

Not vested

Singapore shares were also weighed by losses in rigbuilder Sembcorp Marine , after Brazilian state-run oil company Petrobras said shipyard Estaleiro Atlantico Sul (EAS) submitted the lowest bid in a tender for the building of seven of its drilling rigs.

This could put Sembcorp Marine, the world's second largest rig builder, out of the running for the projects.

"It will be challenging for Sembcorp Marine to secure orders from Petrobras, as many players are eying the pie and may price more competitively for the contracts," said Ng.

Sembcorp shares fell 1.2 percent to S$4.78, with over 7.2 million shares changing hands.


Sosurce: Reuters

[winston]

Not vested

Sembcorp Marine is likely to be in focus after its unit secured two contracts worth $400 million from Noble Corporation to build two jackup rigs, with options for another four that could lift the total value to $1.2 billion.


Source: Reuters

[winston]

Not vested

Fully valued

We reduced our net profit forecasts for 2011 by 7% and 2012 by 1% because of higher SG&A costs and lower interest income expectations.

We also lowered our SOTP target by 5% to S$5.00. Relative to its history and peers,
Sembcorp Marine is fully valued at 18.3x 11CL PE.

In the near term, the stock may continue to be driven by order wins but we believe it will adjust on a 12- month basis.

The main risk to our view is sustained oil prices above US$100.


Source: CLSA

[winston]

Not vested

RESEARCH ALERT-OCBC ups target for Sembcorp Marine to S$6.17

SINGAPORE, Feb 8 (Reuters) - OCBC Investment Research has raised its target price for Sembcorp Marine , the world's second largest oil rig builder, to S$6.17 from S$5.70 and kept its buy rating.

STATEMENT: OCBC said it has increased its net profit forecast by 9.3 percent for Sembcorp Marine's 2011 financial year after incorporating higher margin assumptions.

The brokerage said the prices of recent jack-up orders secured by Sembcorp Marine are on average 12 percent lower than those clinched in the peak years of 2007-2008, which is better than OCBC's expectations.

It added that if new orders continue to flow, the number of available rig slots at prominent yards will decrease and Sembcorp Marine may enjoy greater pricing power.

Based on recent analyst briefings of three U.S. drillers, OCBC also noted increasing optimism about the general outlook for the rig market in various parts of the world, though activities in the Gulf of Mexico are expected to remain low due to few new licenses for oil drilling.

At 0121 GMT, Sembcorp Marine shares were down 0.6 percent at S$5.38 on a volume of 480,000 shares.


Source: Reuters

[winston]

Not vested

Singapore's Sembcorp Marine , the world's second largest rig-builder, may be in focus after it reported a 19.5 percent fall in fourth quarter earnings to S$239.4 million ($186.9 million) on lower sales.

The result was, however, better than expected.


Source: Reuters