Seatrium (formerly known as SembMarine)

[winston]

Not vested

RESEARCH ALERT-DMG upgrades Sembcorp Marine to buy; target S$5.95

SINGAPORE, Feb 24 (Reuters) - DMG & Partners has upgraded Singapore's Sembcorp Marine , the world's second largest rig-builder, to buy from neutral and raised its target price to S$5.95 from S$5.30.

STATEMENT: Sembcorp Marine reported on Wednesday a 19.5 percent fall in fourth quarter earnings to S$239.4 million ($186.9 million) on lower sales. [ID:nL3E7DM0E7]

DMG said Sembcorp Marine's earnings were above its expectation of S$165 million and the street estimate of S$140 million, adding that the firm posted higher-than-expected operating margins for 2010.

The brokerage, whose orders forecast for 2011 is S$4.5 billion, said that Sembcorp Marine has secured contracts for eight jack-up rigs and options for another 10 rigs since the fourth quarter.

"We believe Sembcorp Marine can achieve our new orders forecast -- the 10 newbuild options are worth around $2 billion and newbuild enquiries are strong," DMG said in a report.

Sembcorp Marine management indicated the firm had clinched the environmental license needed for its proposed shipyard in Brazil and is still in the running for seven drillship contracts from Brazilian oil company Petrobras, DMG said.

Sembcorp Marine shares closed flat on Wednesday at S$5.21.


Source: Reuters

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Sembcorp Marine , the world's second largest oil rig builder, may be in focus after it said on Monday its subsidiary Jurong Shipyard had secured an order worth $450 million from Seadrill to build a jack-up rig.


Source: Reuters

[winston]

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Singapore Hot Stocks-Sembcorp Industries up on China water venture

SINGAPORE, April 14 (Reuters) - Shares of Sembcorp Industries , a rig-building and engineering conglomerate, rose over 2 percent on Thursday after it said it was considering building water treatment plants as well as a large commercial, residential and industrial zone in eastern China.

At 0245 GMT, Sembcorp Industries shares were traded at S$5.44 with over 3.7 million shares changing hands.

One of its units, Sembcorp Utilities, has signed a letter of intent with China's Jinan Quancheng Water to explore the formation of a joint venture to build, own and operate water treatment plants in the east of Jinan City, the capital of China's Shandong province.

"The water venture is positive for the company as it is diversifying its business from the Middle East to China, where waste water treatment is a big thing for the government now," said a local trader.


Source: Reuters

[winston]

Not vested

Singapore's Sembcorp Marine , the world's second largest oil rig builder, may be in focus after it said first quarter net profit rose 1.2 percent as revenue fell, while margins improved due to greater operational efficiency.


Source: Reuters

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RESEARCH ALERT-C. Suisse ups Sembcorp Marine to S$6.60; keeps outperform

SINGAPORE, May 10 (Reuters) - Credit Suisse has raised its target price on Singapore's Sembcorp Marine , the world's second-largest oil rig builder, to S$6.60 from S$6.30 and maintained its outperform rating.

STATEMENT: Sembcorp Marine said on Monday first quarter net profit rose 1.2 percent though revenue fell, while margins improved due to greater operational efficiency.

Credit Suisse said Sembcorp Marine's margin performance has surprised on the upside over the past 24 months primarily due to increased efficiency and better pricing of orders. The brokerage lifted its 2011 margin forecast to 17 percent from 15 percent.

It also raised its order intake estimate for 2011 to S$5 billion ($4.1 billion) from S$4 billion. Year to date, Sembcorp Marine has won S$1.5 billion of orders and has another S$2 billion of options in hand, Credit Suisse said.

The brokerage said it believes orders are likely to pick up in the second half of 2011 due to a combination of strong oil prices, the resumption of drilling in the Gulf of Mexico and positive commentary from offshore drillers.

At 0148 GMT, Sembcorp Marine shares were up 0.5 percent at S$5.61 on a volume of 1.3 million shares.


Source: Reuters

[winston]

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RESEARCH ALERT-Daiwa raises SembMarine to S$6.05; keeps outperform

SINGAPORE, May 30 (Reuters) - Daiwa Capital Markets has raised its target price on Singapore's Sembcorp Marine , the world's second-largest oil rig builder, to S$6.05 from S$5.90 and maintained its outperform rating.

STATEMENT: Daiwa said Sembcorp Marine's year-to-date new contract wins were S$1.6 billion ($1.3 billion), trailing its closest competitor, Singapore's Keppel Corp , at S$6.6 billion.

However, Daiwa said Sembcorp Marine has eight options for new-build rigs worth around $1.6 billion granted to customers who have previously placed orders, and it expects most of these options to be exercised in 2011.

The exercise of the options would put Sembcorp Marine on track to meet the 2011 order win forecast of S$5 billion, Daiwa said, adding that share price catalysts are new contracts secured and the return of semi-submersibles orders to the market.

At 0141 GMT, Sembcorp Marine shares were flat at S$5.33 on a volume of 177,000 shares. The stock is down around 0.7 percent so far this year, compared with a rise of around 10 percent for Keppel Corp shares.

Source: Reuters

[winston]

Not vested

Sembcorp Marine , the world's second largest rig builder, may also be in the spotlight after reporting a worse-than-expected 15 percent fall in second quarter net profit, despite stronger margins.


Source: Reuters

[winston]

Not vested

Sembcorp Marine (S$3.95/BUY/TP: S$6.25)

Little FY11 earnings downside risk. Share price slumped 25% since end-Jul 2011 on growing concerns over the global economy and the impact on future order book. We see little downside risk to FY11 earnings but prolonged slowdown in order wins could lead to 20-30% earnings downgrade in FY12.

We continue to like Sembcorp Marine:
(1) balance sheet is the strongest amongst rig builders with net cash of S$1.6b or 19% of its market cap;
(2) 3Q11 results will be boosted by lumpy earnings recognition of Songa Eclipse semi-sub rig;
(3) new yard in Tuas will be fully completed in 2013 and provides timely new capacity to undertake more ship repair and survey jobs.

SMM is trading at 12.2x FY12F P/E and offers 3.8% yield.

Our SOTP-derived TP implies 19x FY12F P/E.

Source: DMG

[winston]

not vested

RESEARCH ALERT-OCBC cuts Sembcorp Marine target to S$5.70

SINGAPORE, Sept 6 (Reuters) - OCBC Investment Research has cut its target price for the world's second-largest rig builder, Sembcorp Marine , to S$5.70 from S$6.30 and kept its buy rating.

STATEMENT: OCBC said it has cut its target price for Sembcorp Marine to take into account the unfavourable macroeconomic conditions for cyclical companies like rig builders, with the increasing risks of a U.S. economic recession.

However, OCBC said with oil prices hovering above $75 per barrel, this will sustain most capital expenditure in deeper water projects.

"Though the fall in Sembcorp Marine's share price is understandable with the negative market sentiment and correction in oil prices, the stock looks over-sold at current levels," OCBC said in a report.

At 0322 GMT, shares of Sembcorp Marine were 0.79 percent lower at S$3.78 and have fallen about 30 percent since the start of the year.

Source: Reuters

[winston]

Not vested. Counter dropped alot today so it's time to make some positive announcement

Singapore's Sembcorp Marine wins $100 mln LNG contract

SINGAPORE Oct 18 (Reuters) - Singapore rig builder Sembcorp Marine said on Tuesday its subsidiary had won a contract worth around $100 million for module assembly work on a liquefied natural gas facility on Curtis Island, Australia.

The Singapore company said in a statement that the value of the contract, which was awarded by Bechtel Overseas, could increase to more than $150 million.

Source: Reuters