Seatrium (formerly known as SembMarine)

[kennynah]

• A good set of results, but nonetheless, are backward looking.

this should be placed under "words of wisdom"....

[iam802]

• A good set of results, but nonetheless, are backward looking.

this should be placed under "words of wisdom"....

Second that... and vote it as 'Quote of the Week'

[millionairemind]

Published March 12, 2010

SembMarine unit clinches US$130m Petrobras deal

Share surges but analysts are wary over lack of substantial new orders

By VINCENT WEE

SEMBCORP Marine's Jurong Shipyard unit has secured a US$130 million floating production storage and offloading (FPSO) vessel pre-conversion contract for Petrobras' Dutch unit.

Extensive work will be carried out on the very large crude carrier (VLCC), MT Suva. This includes hull structure steel renewal, fabrication and installation of new steel work and refurbishment of accommodation. The vessel is scheduled for completion in the second quarter of next year and will be renamed FPSO P62 before being deployed in the Roncador field offshore Brazil.

The FPSO P62 is part of the fourth phase of the Roncador Field development plan and will be installed in about 1,600 metres of water. It will be capable of processing more than 180,000 barrels of oil per day, injecting more than 250,000 barrels of water per day, six million cubic metres of production gas and have a storage capacity of 1.6 million barrels of oil. It is designed to remain offshore for up to 25 years without drydocking.

SembMarine shares leapt 14 cents to close at $4.11 yesterday but as the end of the first quarter looms, the continued lack of substantial new orders is starting to worry analysts. This is just the second new contract announced so far this year. The previous one last month was also for $130 million for a slew of upgrade, maintenance and repair contracts. There have been no new rig orders yet.

DMG and Partners yesterday downgraded SembMarine to a 'sell' while maintaining its target price at $3.51. Citing a sharp run-up in share price since above-expectation results last month, DMG said SembMarine, with a FY'10 P/E of 14.9x, is now trading at a premium to peers such as Keppel Corp (12.7x) and Korean rig builders such as Hyundai Heavy Industries (7.0x), Samsung Heavy Industries (6.8x) and Daewoo Shipbuilding and Marine (6.1x).

'The new $130 million Petrobras order is positive but YTD (year-to-date) awards lag consensus expectation. The latest order lifted SembMarine's YTD new orders to $260 million, 10 per cent of our new order estimate for FY'10 but sharply behind consensus expectation of $5 billion to $7 billion,' DMG concluded.

[winston]

Not vested. From DMG:-

Wide P/E premium to peers; downgrade to SELL

We maintain our target price of S$3.51. There is no change in our target price or valuation methodology. Our S$3.51 target price is based on SOTP and values the stock at 15.4x FY11 P/E.

For exposure to the offshore & marine sector, we prefer Keppel Corp as a better bet for returning rig building orders.

Downside risks to our forecast are:
(1) SMM winning the Petrobras drillship order;
(2) sharp rise in oil price to above US$100/bbl, leading to aggressive rig newbuilding.

[winston]

Not vested. Refreshing to see someone against the crowd ..

SembCorp Marine: S$550m new contract from ConocoPhilips (SELL, S$4.02, TP S$3.51)
Jason Saw (6232 3871, [email protected])

Biggest new award YTD. Sembcorp Marine (SMM) announced that its wholly owned subsidiary, SMOE, has secured a S$550m contract from ConocoPhillips to construct the Ekofisk accommodation topside, which will be installed in the North Sea. Construction of the project is expected to start in 3Q2010 and ready for delivery in 2013.

Key impact of the new award:
(1) The contract lifts YTD new awards to S$810m and brings total outstanding order book to S$6.3b. YTD new awards accounted for 32% of our FY10 new orders estimate.
(2) Based on 10% net margin assumption, and project duration of two years, we estimate the topside project to contribute S$27m net profit pa over FY11-12F, equivalent to 5-6% of our earnings forecast.

Maintain EPS and target price. We maintain our FY10-11F net profit forecast and target price at S$3.51 based on SOTP as we have factored in S$2.5b new awards for FY10 and S$3.5b for FY11. Share price is now trading at 14.6x FY10 P/E and 17.7x FY11 P/E vs. 13.5x FY10 P/E and 14.6x FY11 P/E for Keppel.

We re-iterate our SELL rating on the stock:
(1) SMM’s share price has surged ahead of fundamental improvement in terms of new order wins and recent run-up (+21% since start of Feb 2010) is an opportunity to take profit.
(2) Pace of new order win remains below existing order book burn rate and this will lead to lower order book level by year-end. Based on our estimates, the slowdown in new order wins in the past 12 months will
result in two consecutive years of earnings decline: -19% in FY10 and -17% in FY11.

[millionairemind]

May 7, 2010, 5.29 pm (Singapore time)

Sembcorp Marine's Q1 net profit grow 24%

By JOYCE HOOI

SEMBCORP Marine saw a 23.8 per cent growth in net profit from $120.2 million to $148.8 million for the first quarter ended Mar 31, 2010, supported by stronger operating margins.

Revenue for the group dipped 0.3 per cent to $1.36 billion for the same period.

[winston]

RESEARCH ALERT-Phillip raises Sembcorp Marine price target

SINGAPORE, May 10 (Reuters) - Following is a list of Singapore stock price target changes and rating changes on Monday.

COMPANY RIC BROKER RATING (PVS)
TARGET PRICE (PVS)
Phillip BUY (BUY) S$4.74 (S$4.72)

We expect Sembcorp Marine to report lower earnings of S$640m in FY2010F, which is a decline of 8.5% from S$700m in FY2009, mainly due to a drop in its order book as fewer orders have been secured in FY2009.

However, we anticipate an improvement in its order book after the financial crisis. This is because the increase in demand for oil will encourage oil companies to drill for oil, which requires more oil rigs and offshore production platforms. This is likely to boost its profit by 7.6% to S$689m in FY2011F and 10.9% to S$764m in FY2012F.

The company has been receiving more inquiries. In 1Q FY2010, it clinched an S$550m order from ConocoPhililips Skandinavia AS and an S$130m order from Petrobas.


Source: Reuters

[millionairemind]

Published June 22, 2010

SembMarine starts construction of new yard at Tuas View Extension

Singapore's first integrated yard will be built in 3 phases

By JASLENE PANG

IN A major milestone in its expansion, Sembcorp Marine broke ground yesterday to launch the start of phase one construction of its new yard. The facility, at Tuas View Extension, will also be Singapore's first integrated yard.

Growth phase: When fully completed, the yard will boost Sembcorp Marine's total dock capacity by 62% to some three million dwt

Minister for Trade and Industry Lim Hng Kiang, who was the guest of honour at the ceremony, said: 'Sembcorp Marine contributes nearly 30 per cent of the industry's manufacturing output in Singapore, and their investment in building capacity will have a strong spin-off effect for the entire industry cluster.'

Sembcorp Marine chairman Goh Geok Ling said that the 206-hectare integrated yard facility will be built in three phases.

Phase 1 is scheduled to be completed by the end of 2013 with partial operations starting in the second half of 2012. When fully completed, the custom-designed yard will boost Sembcorp Marine's total dock capacity by 62 per cent to some three million deadweight tonnes.

Mr Lim said: 'Sembcorp Marine's new yard reflects their commitment towards raising productivity levels . . . Boosting productivity levels will be a key factor in ensuring that our marine and offshore industry continues to grow and achieve long-term sustainable competitiveness.'

Touching on the government funding of $2 billion for a National Productivity Fund to encourage greater productivity growth across 12 priority sectors, including the marine and offshore sector, Mr Lim also urged companies in the marine and offshore sector to come forward and tap on these funds.

The marine and offshore industry is one of the fastest growing sectors in Singapore's economy, growing by a compounded growth rate of 18 per cent in the past five years.

During the global downturn in 2009, manufacturing output of the sector was close to $20 billion, about 10 per cent of Singapore's total manufacturing output.

[millionairemind]

August 3, 2010, 5.46 pm (Singapore time)

Sembcorp Marine says Q2 net profit up 28%

SINGAPORE - Sembcorp Marine, the world's number two oil rig builder, reported on Tuesday a better-than-expected 28 per cent rise in second quarter net profit, helped by higher margins and earlier completion of projects.

The company, 61 per cent owned by Sembcorp Industries, earned $176.1 million in the April-June period, up from $138.1 million a year ago.

The result beats the $141.6 million forecast of two analysts surveyed by Reuters.

Sembcorp Marine said its orderbook stood at $4.3 billion. -- REUTERS

[winston]

Not vested

Sembcorp Marine ST: the RSI is oversold <SCMN.SI>

Click here to see our chart:
http://www.tradingcentral.com/chart/SMM ... 012810.gif

Our pivot point stands at 3.93.

Our preference: the downside prevails as long as 3.93 is resistance.

Alternative scenario: above 3.93, look for 4.03 and 4.08.

Comment: the RSI is below 30. It could either mean that the stock is in a lasting downtrend or just oversold and therefore bound to retrace (look for bullish divergence in this case).

The MACD is below its signal line and negative. The configuration is negative. Moreover, the stock is trading under both its 20 and 50 day MA (standing respectively at 3.94 and 3.92).

Supports and resistances: 4.03 *3.93 **3.89 3.83 last 3.7 3.65 **3.59 *


Source: Reuters