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Latest Forum Topics / SembMar    Last:4.51   Vol:9252k    +0.03   Rate This Topic  Post Reply
Sembmarine
krisluke
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10-May-2013 10:39      About krisluke      Contact       Quote this Post!          
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The offshores continues to show strength yesterday. 

Kepcorp was the stronger performer yesterday. It managed to continue its rebound after its bullish reversal confirmation. Lower low formation has definitely been formed and Kepcorp will be heading higher to form a higher high formation. The immediate resistance level that Kepcorp will face will be 11.80 level. It will likely to test this resistance level in this few days.

Sembmar also managed to head higher yesterday but its bullish attempts seems to be countered by sellers. A second shooting star was formed at the 50ma line which shows that the resistance at 4.39 level is firm. If Sembmar closes lower than 4.39 level today, it will indicate a possible retracement action to come.

Sembcorp struggled yesterday and ended up on the negative zone. Its 20ma resistance at 4.98 level is still preventing Sembcorp from trading higher. There is a need of a stronger catalyst to help Sembcorp to break this resistance level or else it will still remain in the downtrend momentum.

Overall, the offshores will continue to show its bullish strength today while attempting to test their resistance levels again.
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krisluke
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09-May-2013 21:42      About krisluke      Contact       Quote this Post!          
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SembCorp Marine Ltd. Technical Analysis Chart | SCMN | SG1H97877952 | 4-Traders
Full-screen chart


SembCorp Marine Ltd. Technical Analysis Chart | 4-Traders

 
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krisluke
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09-May-2013 16:42      About krisluke      Contact       Quote this Post!          
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Alert Admin 		NEW Contracts announcement  plus HIGHER  volume would be sweet .
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krisluke
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09-May-2013 16:31      About krisluke      Contact       Quote this Post!          
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The offshores were seen attempting to rebound yesterday and managed to gain a little yesterday.

Sembcorp attempted to break its 20ma resistance line at 4.98 level and failed to close above it. Its dividend gap resistance level between 5.02 5.11 levels might have prevented it from trading higher. Sembcorp will likely to attempt to trade higher again today.

Sembmar showed bullish strength but it faced resistance at 4.39 level. It managed to break this resistance level during the day but the resistance level stayed firmed. This could be probably due to the 50ma resistance line at 4.39 level that is reinforcing the resistance. Sembmar will continue to attempt to break this resistance level today.

Kepcorp managed to confirm its bullish reversal candle yesterday. This will indicate a rebound towards its immediate resistance level of 10.80.

Overall, the offshores does still have bullish strength to rally before it reaches its resistance levels.
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krisluke
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08-May-2013 17:36      About krisluke      Contact       Quote this Post!          
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Alert Admin 		could be affected by  SCI .. ...

krisluke      ( Date: 30-Apr-2013 09:30) Posted:



R = $4.37

S = $4.28

... ...
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krisluke
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08-May-2013 16:49      About krisluke      Contact       Quote this Post!          
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REVIEW :::: what have been said by local analysts  this far....

From OCBC:
Sembcorp Marine: Pick up a quality stock on the cheap
Sembcorp Marine (SMM) reported a 11.4% YoY rise in revenue to S$1.05b and a 5% increase in net profit to S$118.7m in 1Q13, both accounting for about 20% of our full year estimates and in line with our expectations. Operating margin increased from 10.8% in 4Q12 to 13.7% in 1Q13, and the significant uptick could be partly because revenue recognition of the Sete Brasil drillship in the last quarter was not very significant. Management reiterated that enquiries remain healthy across the various business segments. SMMs share price has underperformed the STI by about 15% YTD although there has been no change in the companys fundamentals. In our view, investors seeking to hold a quality company for the longer term would find value in SMM. Maintain BUY with S$5.64 fair value estimate. 


From UOB KH:
Sembcorp Marine- 1Q13: Mixed signals.
(SMM SP/HOLD/S$4.26/Target: S$4.60)
FY13F PE(x): 17.1
FY14F PE(x): 14.5
Below consensus expectation. Sembcorp Marine (SMM) reported a net profit of S$119m (+5% yoy) on the back of a turnover of
S$1,050m (+11% yoy). 1Q13 net profit appears to be below consensus expectation, but within our expectation. 1Q13 net profit
accounts for 20% of consensus 2013 forecast of S$604m, but 23% of our 2013 forecast of S$516m.
Our 2013-15 earnings forecasts are largely unchanged. We maintain our contract win assumptions of S$5b p.a. for 2013-15 (2012: S$11b). Ytd, SMM has won S$1.7b worth of new contracts. Orderbook stands at S$13.6b with project deliveries stretching
to 2019. The seven drillships for Sete Brasil make up 49% of SMMs orderbook.
Maintain HOLD. We lower our target price marginally from S$4.85 to S$4.60 due to valuations for SMMs own shipyard business
(15x 2014F earnings vs 16x previously) and CSG following a cut in the latters earnings. We have widened SMMs shipyard valuation vs Keppels (we have ascribed an 18x 2014F PE valuation to Keppel). Keppels O& M margins appear to be more resilient.
We suggest entry at S$4.10. 


From DBS:
SembCorp Marines 1Q13 results below expectations, net
profit up only 5% on slower than expected revenue
recognition. Our analyst has cut FY13/14 net earnings by
8%/4%, factoring in slower revenue recognition. Healthy rig
demand but keen competition could cap margins recovery.
Maintain HOLD with a lower TP of S$4.70 (Prev S$ 5.00).
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krisluke
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08-May-2013 16:45      About krisluke      Contact       Quote this Post!          
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Alert Admin 		Sembcorp Marine: Pick up a quality stock on the cheap




By Low Pei Han
Mon, 6 May 2013, 09:19:14 SGT

Sembcorp Marine (SMM) reported a 11.4% YoY rise in revenue to S$1.05b and a 5% increase in net profit to S$118.7m in 1Q13, both accounting for about 20% of our full year estimates and in line with our expectations. Operating margin increased from 10.8% in 4Q12 to 13.7% in 1Q13, and the significant uptick could be partly because revenue recognition of the Sete Brasil drillship in the last quarter was not very significant. Management reiterated that enquiries remain healthy across the various business segments. SMMs share price has underperformed the STI by about 15% YTD although there has been no change in the companys fundamentals. In our view, investors seeking to hold a quality company for the longer term would find value in SMM. Maintain BUY with S$5.64 fair value estimate.

1Q13 results in line
Sembcorp Marine (SMM) reported a 11.4% YoY rise in revenue to S$1.05b and a 5% increase in net profit to S$118.7m in 1Q13, both accounting for about 20% of our full year estimates. This is in line with our expectations 1Q figures also accounted for about 20% of the full year numbers in FY11-12. Meanwhile, what was surprising was a 55% fall in share of results of associates and JVs to S$6.2m in the quarter, due to poor performance from Cosco.

Operating margin recovers in the quarter
The increase in revenue was mainly due to higher revenue recognition from rig building activities. Operating margin increased from 10.8% in 4Q12 to 13.7% in 1Q13, and the significant uptick could be partly because revenue recognition of the Sete Brasil drillship in the last quarter was not very significant. Meanwhile, two jack-up rigs for Noble were recognized in the quarter and none of the semi-submersibles were recognized.

Optimistic on order flow
Management reiterated that enquiries remain healthy across the various business segments of ship repair, conversion, offshore platforms and rig building. Though pressure on margins remains due to stiff competition, we still see the group securing a good share of orders in certain niche areas. For instance, SMM is contending with Daewoo Shipbuilding & Marine Engineering to build two harsh environment CJ70 jack-ups for Maersk, according to Upstream.

Maintain BUY
After securing new orders worth about S$1.68b YTD (accounting for 42% of our full year estimate), the groups net order book stands at S$13.6b with completion and deliveries till 2019. SMMs share price has underperformed the STI by about 15% YTD although there has been no change in the companys fundamentals. In our view, investors seeking to hold a quality company for the longer term would find value in SMM. Maintain BUY with S$5.64 fair value estimate.


 
Disclaimer for Research Report

This report is solely for information and general circulation only and may not be published, circulated, reproduced or distributed in whole or in part to any other person without our written consent. This report should not be construed as an offer or solicitation for the subscription, purchase or sale of the securities mentioned herein. Whilst we have taken all reasonable care to ensure that the information contained in this publication is not untrue or misleading at the time of publication, we cannot guarantee its accuracy or completeness, and you should not act on it without first independently verifying its contents. Any opinion or estimate contained in this report is subject to change without notice. We have not given any consideration to and we have not made any investigation of the investment objectives, financial situation or particular needs of the recipient or any class of persons, and accordingly, no warranty whatsoever is given and no liability whatsoever is accepted for any loss arising whether directly or indirectly as a result of the recipient or any class of persons acting on such information or opinion or estimate. You may wish to seek advice from a financial adviser regarding the suitability of the securities mentioned herein, taking into consideration your investment objectives, financial situation or particular needs, before making a commitment to invest in the securities. OCBC Investment Research Pte Ltd, OCBC Securities Pte Ltd and their respective connected and associated corporations together with their respective directors and officers may have or take positions in the securities mentioned in this report and may also perform or seek to perform broking and other investment or securities related services for the corporations whose securities are mentioned in this report as well as other parties generally.

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For and on behalf of OCBC Investment Research Private Limited:

Carmen Lee
Head of Research

Co.Reg.no.:198301152E

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krisluke
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08-May-2013 10:11      About krisluke      Contact       Quote this Post!          
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The offshores were mostly able to trade higher yesterday. 

Sembmar made the most gains yesterday while it manages to trade above its 20ma line again. It will likely to attempt to break its recent high of 4.37 level in order to reverse its current downtrend status. Breaking this resistance level will lead to testing of the next resistance at 4.42 level.

Kepcorp was also attempting to rebound and ended its day with a bullish reversal candle. If Kepcorp is able to close higher than 10.52 level, it will likely to be able to confirm the reversal and head towards its resistance at 10.80 level.

Sembcorp was seen struggling yesterday and ended lower.  It will likely to continue to attempt to rebound today.

Overall, the offshores will likely to gain bullish momentum to rebound today.
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krisluke
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07-May-2013 15:14      About krisluke      Contact       Quote this Post!          
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Rig builders: Keppel and SembMarine to gain from surge in jack-up rig orders, say analysts

It is no secret that Singapores two rig builders Keppel Corp and Sembcorp Marine have underperformed the benchmark Straits Times Index in recent months. Since the start of the year, shares of Keppel and SembMarine have taken a beating, falling 4% and 11% respectively, compared with a rise of 7.2% in the STI. The stocks have been dogged by concerns of margin pressure as both yards take on the construction of new and more costly rigs. Meanwhile, competition is rising from low-cost builders in China as well as the more experienced South Korean yards.

But things could be looking up for the rig builders soon. Keppel and SembMarine are on the verge of winning a slew of fresh orders for their in-house designed, latest generation CJ-70 jack-up rigs that could make shares of the two yards look attractive at their current levels, notes research house Barclays. That is because Norwegian oil and gas (O& G) producer Statoil is beginning to award contracts for the development of its Mariner heavy-oil field in the UKs North Sea, and will require the use of a CJ- 70 jack-up rig to carry out drilling works at the field in the first few years of its development. The company expects to start production from Mariner in 2017 following its development. The field is estimated to contain about two billion barrels of oil and produce for up to 30 years.

Statoil, which has announced a budget of more than US$7 billion ($8.63 billion) to develop the Mariner oil field together with its partners, is reportedly in favour of awarding the first CJ-70 jack-up contract to New York-listed Noble Drilling, according to O& G newspaper Upstream. The driller is currently in talks with two Statoil-nominated yards SembMarines Jurong Shipyard in Singapore and Daewoo Shipbuilding & Marine Engineering in South Korea for the construction of the rig, and is expected to announce the award of a construction contract with the selected yard this month.

Tailored for work in harsh conditions, CJ-70 jack-up rigs can operate in water depths of about 500ft, drill to depths of over 35,000ft and command day rates of up to US$400,000. Costing up to US$600 million each to build, the rigs are also able to accommodate more than 100 personnel and house heavy-duty drilling equipment.

Besides the potential contract to Noble Drilling, Statoil is also expected to announce separate contracts for the construction of two CJ-70 jack-up rigs this month. The rigs, which will be owned by Statoil but managed by a selected operator, are intended to develop the Gullfaks and Oseberg oilfields off the Norwegian coast over a period of eight years from 2016, according to Upstream.

With both [Keppel and SembMarine] the only yards globally with a track record in constructing [CJ-70] rigs, we believe they could be poised to benefit from any new orders, write analysts from Barclays in an April 26 research note. Based on earlier orders with both yards, we estimate that the price of each
[CJ-70] rig could range from US$450 million to US$600 million. The potential award of the three [Statoil] newbuilds could add US$1 million to US$2 billion to the order books of both companies.

Meanwhile, other major drillers could be looking to add to their rig counts in the coming quarters too. Danish rig operator Maersk Drilling is looking to invest in more CJ-70 jack-up rigs for work elsewhere in the North Sea, and is reported to be exploring its options with SembMarine and Daewoo Shipbuilding
& Marine Engineering. The first of the two new jack-ups under negotiations is intended for a potential five-year contract from early 2016 in the Norwegian North Sea, according to Upstream. Maersk Drillings last newbuild CJ-70 jack-up contract was with Keppel in June 2012, which included an option for another
unit that has since lapsed. It has so far awarded three CJ-70 jack-up rig construction contracts to Keppel.

Barclays also believes established drillers such as Rowan Companies, Transocean, Atwood Oceanics and Diamond Offshore Drilling, which are current or past customers of Keppel and SembMarine, may also be planning to boost their inventory of jack-up rigs. Just last month, Keppel secured a US$225 million contract to build a B Class jack-up rig for driller Ensco. When completed in 1Q2015, the rig will be the fourth jack-up built by Keppel in Enscos fleet. Over the years, Keppel has delivered 16 newbuild projects to Ensco, with another four on order, including the latest contract.

We believe the key beneficiaries within our coverage from a strengthening jack-up market could be the Singapore yards, especially Keppel, which has established a reputation for being the go-to yard for jack-ups, Barclays writes in a recent research note. There are concerns that a record year of deliveries for the company in 2013 and a large number of jack-ups entering the market in 2013 could result in a slowdown of new orders, it adds. However, we believe an improving demand outlook and a rig replacement cycle could help alleviate some of these concerns as rig owners continue to retire older units and high-spec their fleets.

 

Image: A Keppel Corp employee stands in front of the Transocean Andaman jack-up rig, built for Transocean. Credit: Bloomberg



 

 

 

Credit: Bloomberg



KEPPEL IN FAVOUR
Of the two rig builders, Barclays is more bullish on Keppel, which recently announced revenues of $2.8 billion for 1Q2013, down 35% from the year before, while earnings were down 56% to $331 million during the same period, owing to the erratic performance in Keppels property sector. Today, Keppel has built about 50% of the worlds jackup rigs delivered since 2000, Keppel CEO Choo Chiau Beng told analysts and reporters at the companys 1Q2013 results briefing last month. We also have a suite of 27 proprietary offshore rig designs in various stages of commercialisation.

Indeed, Keppel has secured seven new B Class jack-up rig contracts in 1Q2013, as well as the Ensco contract and an order to build a US$226 million B Class jack-up rig from Singapore-listed Falcon Energy in April, taking new orders for 2013 to US$1.8 billion so far. The company is also seeing an increase in enquiries to build semi-submersible rigs from various customers, although it warns that these contracts could take some time to come through. And while the execution of new rig products such as semi-submersibles will likely result in lower margins as the yard improves on its abilities, operating margins for the rig building segment increased to 14.1% from 13.5% in 4Q2012, thanks to the early delivery of five B Class jack-ups.

We believe Keppels ability to yet again deliver a sector leading margin despite the headwinds faced by the industry underlines its operational strength and strong outlook, writes Barclays. The research house has an overweight call on Keppel and values the stock at $13.80, representing an upside of 30%.



SEMBMARINE CATCHES UP
Meanwhile, Lim Siew Khee of CIMB Research recently changed her top pick in the sector to SembMarine from Keppel following news of the potential Statoil contracts. She points out that SembMarine will likely win the lions share of the CJ-70 jack-up work from Noble Drilling and Maersk Drilling as Keppel focuses on executing its other jackup rig contracts. While an order book decline could cap Keppels share price, a 9% potential increase in order book by end-2013 and order newsflow could catalyse SembMarines [share price], she writes in an April 29 note. Lim is also expecting the rig builder to announce an improvement in its 1Q2013 margins when it releases its results on May 3. She is overweight on the stock, with a price target of $5.01, representing an upside of 16.8%.

Elsewhere, Yeak Chee Keong of Maybank Kim Eng also prefers SembMarine over Keppel. He is expecting 1Q2013 earnings to rise by 29% y-o-y to $146 million on the back of a 41% y-o-y rise in revenues to $1.3 billion for SembMarine. Sequentially higher margins this quarter would not be difficult, given the low level of 10.8% registered last quarter writes Yeak in an April 25 report. While Keppel offers better downside risk protection, we believe that SembMarine will outperform on an uptrend. We think that concerns on margins are overdone and expect upside this year. [SembMarines] current share price is unjustifiably low. Yeak is calling a buy on the stock with a price target of $5.40, representing an upside of 26%.
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krisluke
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07-May-2013 14:52      About krisluke      Contact       Quote this Post!          
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Alert Admin

The offshores were mostly trading slightly lower yesterday.

Kepcorp was seen closing lower for 3 consecutive days and there was no clear signs of reversal from the candles formation yet. Surprisingly, bullish signal was being triggered in the Histogram which can lead to a reversal movement. To confirm the reversal, Kepcorp must be able to close higher than 10.54 level today.

Sembmar failed to show any bullish movement yesterday and continues to face resistance pressure from its 20ma line at 4.28 level. With its modest reporting of its 1st quarter earnings, it will unlikely to have much impact on the price action today.

Sembcorp is also facing resistance from its 20ma line yesterday. Resistance at 5.00 levle held well and prevent Sembcorp from trading higher. It will likely to continue to do so today.

Overall, the offshores will not be able to show any strong performance today as they are still unable to derive a good rebound.
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krisluke
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06-May-2013 18:00      About krisluke      Contact       Quote this Post!          
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Sembcorp Marine pops the champagne on $13.6b orderbook



Deliveries are extending up to 2019.

According to Nomura, Sembcorp Marine reported 1Q13 PATMI of SGD119mn, up 5% on y-y  basis though significantly lower than consensus of SGD158mn on sales  of SGD1.05bn (up 11.4% y-y). 

Higher profitability vs. 1Q12 was largely  attributable to strong EBIT margins at 13.7% during the quarter (12.2%  in 1Q12) which offset the strong decline in associate income and lower  interest income.

Here's more from Nomura:


Results were down sharply vs. 4Q12 though, with revenue coming in 23% lower while PATMI at SGD119mn was down 28.7% q-q. The sharpest decline in revenue was registered in the rig building segment (-31% q-q) followed by conversion and offshore (-12%).

EBIT margins, though, recovered strongly to 13.7% during the quarter (10.8% in 4Q12) as general and administrative expenses declined 37% q-q.

Management has maintained its positive outlook on the sector, citing  strong enquiry levels across business divisions and healthy  fundamentals for the offshore & marine sector driven by the projected  rise in offshore exploration and production spend.

Given strong  competition for new orders, the group will focus on improving productivity  and operational efficiency and ensuring timely and within-budget delivery  of orders to clients.

According to management, demand for ship repair  and upgrade work too remains high. The group has a strong orderbook  of SGD13.6bn with deliveries extending to 2019 while new orders  secured during the quarter amounted to SGD1.7bn.
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krisluke
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06-May-2013 12:26      About krisluke      Contact       Quote this Post!          
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SembMarine (S51.SG) is up 0.7% at $4.29, slightly outperforming the STI's 0.4% rise, despite reporting 1Q13 net profit of $118.7 million, up 5% on-year, but below some analysts' expectations.

" The revenue was a bit light for the quarter, but margins recovered a bit from the previous quarter," says Vincent Fernando, an analyst at Religare Capital, adding the market is likely relieved there wasn't a repeat of the fourth-quarter margin. But he notes, " the long-term outlook for margins is still down it's hard to extrapolate any major margin recovery," adding, SembMarine is also still warning about competition and margin pressure ahead.

Orderbook quotes suggest the stock isn't likely to retest its $4.32 intraday high.
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krisluke
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06-May-2013 12:22      About krisluke      Contact       Quote this Post!          
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Target S$4.70 (Long Term: Trading Buy)

Sembmarine achieved 13.7% operating margin in 1Q13 and maintained its guidance of 10-13% for FY13. Quarterly margins could still fluctuate but we believe that it has bottomed out. Order wins and steady margins could be the stockfs key catalysts. 1Q13 net profit met our expectations, at 22% of our FY13 forecast but 20% of consensus. We up FY13-15 EPS by 1% for higher revenue from Sete Brasilfs drillships, offset by lower Cosco profits. It remains a Trading Buy but not an Outperform due to uncertainty in Brazil. We cut our target price for a lower CY14 target P/E of 13.5x (prev. 15x), 10% lower than the O& M mid-cycle valuation, in line with our KEP downgrade.


1Q13 net profit met our expectations, at 22% of our FY13 forecast but 20% of consensus. We up FY13-15 EPS by 1% for higher revenue from Sete Brasil's drillships, offset by lower Cosco profits. It remains a Trading Buy but not an Outperform due to uncertainty in Brazil. We cut our target price for a lower CY14 target P/E of 13.5x (prev. 15x), 10% lower than the O& M mid-cycle valuation, in line with our KEP downgrade. 

Good margins but could be lumpy in 4Q13 
As expected, 1Q13 operating margin improved to 13.7% from 10.6% in 4Q12 given the lack of 1) provision for the Noble rig accident, and 2) initial recognition of the first drillship for Sete Brasil. With no more provisions to be made for the rig accident (rebuilt rig to be delivered in 3Q13), margins could remain steady until 4Q13 when it is expected to recognise the first 20% of the second drillship (the 7th unit that is due for delivery in 2016). We shift our Sete Brasil revenue recognition and assume lower profits for Cosco. This results in a lower operating margin assumption of 12.6% (previously 13.2%) for FY13. 

Order book up 4% end-13 
Management expects to recognise about S$4bn revenue in FY13 from the current order book, excluding ship repair. This would still mean a 4% rise in order book by end-2013, assuming Sembmarine meets our order win target of S$4.5bn. YTD, it has secured S$1.7bn, taking the order book to S$13.6bn now. 

Downside limited
Sembmarine remains our top pick in the big-cap O& M sector given its superior earnings and order book growth vs. KEP. It is trading close to its 12-month trough and has underperformed the index by 12% YTD. With c.4% dividend yield, we expect 14% total return.
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krisluke
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06-May-2013 12:08      About krisluke      Contact       Quote this Post!          
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Alert Admin 		  2013-05-06 03:01:00

Update on supports and resistances.

Pivot: 4.4

Our preference: Short positions below 4.4 with targets @ 4.1 & 3.8 in extension.

Alternative scenario: Above 4.4 look for further upside with 4.6 & 4.85 as targets.

Comment: as long as the resistance at 4.4 is not surpassed, the risk of the break below 4.1 remains high.

Key levels
4.85
4.6
4.4
4.28 last
4.1
3.8
3.6

Copyright 1999 - 2013 TRADING CENTRAL

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krisluke
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06-May-2013 11:59      About krisluke      Contact       Quote this Post!          
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Alert Admin 		What is the news?

Sembcorp Marines 1Q13 net profit of S$119mn represents 20% of both our FY13E (S$595mn) and consensus (S$604mn) forecast. 1Q13 operating margin of 13.7% was above our expectation of 12.0% and consensus 12.3%. Management attributed the rise in margins (from 10.8% in 4Q12 to 13.7% in 1Q13) to high-margin ship repair activity and recognition of 2 repeated design jack-up rigs awarded by Noble.

How do we view this?



1Q13 earnings of S$119mn (-7.7% qoq, +5.0% yoy) were slightly below expectation despite higher operating margin, due to lower 1Q13 revenue of S$1.05bn (-23.8% qoq, +11.4% yoy), which accounts for 19% of both our FY13E (S$5.392bn) and consensus (S$5.524bn) forecast. Managements guidance for long-term operating margin is around 10% -13%. We note that initial revenue recognition for Sete Brasil 7th drillship is likely to be in 4Q13, and the new integrated yard in Singapore will be commercially operational in 2H13. We expect margins to remain under pressure in 2H13 as they continue to execute on the drillship orders from Brazil.

Investment Actions?



Management continues to see healthy enquiry levels for deepwater rigs from Africa, Gulf of Mexico and the North Sea. Stock currently trades at 13.8x forward P/E, above its long-term average of 12.3. We are lowering our FY13-14E earnings by ~6%, factoring the higher margins on lower revenue. Our target price falls from S$4.69 to S$4.42. We maintain Neutral.

Source: PhillipCapital Research - 6 May 2013
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krisluke
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06-May-2013 11:45      About krisluke      Contact       Quote this Post!          
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Alert Admin 		Strong margin outperformance. Sembcorp Marine (SMM) reported 1Q13 revenue of SGD1.05b (+11% YoY, -24% QoQ), along with PATMI of SGD118.7m (+5% YoY, -29% QoQ). While revenue and PATMI was lower than our expectations, this is a matter of recognition timing and not much of a concern. What is significant is the magnitude of the sequential upswing in operating margin to 13.7% (from 10.8%), which came in as a pleasant surprise, and we expect a positive market reaction. Reiterate Buy with SOTP-based TP of SGD5.40.

Sustainable margin? The higher than expected 1Q13 operating margin supports our view that consensus are overly pessimistic in their margin outlook. However, we caution against extrapolating this for the full-year. We believe that SMM could adopt conservatism in cost recognition for some of its semisubs and the second unit of Sete Brasil drillship, due for initial recognition in in subsequent quarters. We maintain our 12.9% operating margin forecast for the full-year, which is higher than consensus.

Second drillship could achieve recognition in 4Q13. No semisubs reached the stage of initial recognition in 1Q13 which explains that lower revenue as compared to our forecast in our results preview note. Two more Noble jackup units achieved initial recognition this quarter. Management also guided that they are working towards initial recognition of the second Sete Brasil drillship by 4Q13.

Healthy enquiries support positive order outlook. Net orderbook stood at record high of SGD13.6b and YTD contract wins amount to SGD1.7b. SMM maintains a positive order win outlook citing the healthy pipeline of enquiries from Mexico, the North Sea and Africa. Our forecast of SGD5.2b in order wins for FY13F remains on track.

Reiterate Buy. We continue to like SMM for its strong revenue visibility and pure-play exposure to the offshore & marine sector. We think that margins could continue to outperform market expectations, reverting its share prices relative underperformance. We adjust our forecasts for weaker associate contributions from Cosco Shipyard Group. Maintain Buy and preference for SMM over Keppel Corp.

Source: Maybank Kim Eng Research - 6 May 2013
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krisluke
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06-May-2013 10:40      About krisluke      Contact       Quote this Post!          
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Alert Admin

Sembcorp Marine - Credit Suisse cut 2013 EPS by 8%. Maintain its NEUTRAL rating and target price of S$4.00.

Sembcorp Marine: Pick up a quality stock on the cheap. Maintain BUY with S$5.64 fair value by OIR.

Sembcorp Marine- 1Q13: Mixed signals. Maintain HOLD. UOBKH lower its target price marginally from S$4.85 to S$4.60.
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krisluke
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06-May-2013 09:13      About krisluke      Contact       Quote this Post!          
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Alert Admin

SMM: 1Q13 results slightly below. Revenue was up 11% yoy to $1.05b, but was below expectations due to fewer projects reaching revenue recognition milestone. Net profit rose 5% yoy to $119m, but was also slightly below expectations at 20% of Street of forecasts, dragged by disappointing associate income due to poor performance of Cosco. Operating margins however surprised positively at 13.7% (+2.9 ppts qoq), vs Street expectation of 12.0-12.5%. Even after adjusting for one-offs (US$7m gain for settlement of FX related claims), core operating margin was still respectable at 13.0%, supported by lower other expenses and surge in other income. YTD order wins stand at $1.7b, on track with full year estimates of $5.5b. Net order book is at $13.6b, with visibility until 2019. Keppel and SMM have indicated that order enquiries remain healthy and they are leading contenders for new jobs from North Sea, GoM as well West Africa region.

Deutsche keeps at Hold with TP $4.20.

Credit Suisse has Neutral with TP $4.00

Nomura maintains Buy with TP $5.20

CLSA keeps at Buy with TP $5.60
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edchai
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03-May-2013 19:00      About edchai      Contact       Quote this Post!           Mood: happy
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Alert Admin 		Good news but would it moves the share price on next Monday ?
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krisluke
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03-May-2013 18:53      About krisluke      Contact       Quote this Post!          
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Alert Admin 		Bill Lehane 

  03 May 2013 10:19 GMT        upstream news

Singapores Sembcorp Marine has lifted net profits by 5% year-on-year to $119 million in the first quarter as boosted margins in rig building and ship repair added to the bottom line.


The fabrication group said net profits were offset by a 64% drop in associate contributions from Cosco Shipyard Group to $4.2 million, as well as the absence of a year-ago benefit from interest income on deferred payment to customers.

The contractor raised revenues 11% over the three-month period to $1.1 billion, which it put down to higher revenue recognition in the rig building segment.

Sembmarine booked $1.7 billion in rig orders and offshore platform contracts since the start of the year to take its order book to $13.6 billion.

The contractor said overall outlook was healthy, while warning that competition is intense and impacts margins.

It said it expects strong demand for rig building, especially high-spec units in an era of increased focus on safety.
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