Stock Name: Swiber
Company Name: SWIBER HOLDINGS LIMITED
Research House: DMG
It estimates Swiber has a net outstanding order book of around US$870 million, equivalent to 1.8X FY10 revenue. “The various chartering contracts are expected to boost its fleet utilisation rate which is hovering around 60%-70%.”
The house makes no changes to its EPS estimates and $0.85 target, and maintains its Neutral call. “We keep our earnings forecasts unchanged as we have assumed US$350 million new job wins in 2011. We remain lukewarm on the stock as: we believe earnings will be unexciting this year due to poor order flow in 2H10; and Swiber needs significant order wins to offset the cost of maintaining a growing fleet.”
Company Name: SWIBER HOLDINGS LIMITED
Research House: DMG
Swiber (AK3.SG) is up 2.6% at $0.805 in active trade after it says it secured various contracts worth US$27 million ($34.2 million) in total, mainly for the charter of offshore construction and support vessels. DMG says with this new announcement of job wins, the third this month, YTD 2011 new orders hit US$186 million, 53% of its full-year forecast.
It estimates Swiber has a net outstanding order book of around US$870 million, equivalent to 1.8X FY10 revenue. “The various chartering contracts are expected to boost its fleet utilisation rate which is hovering around 60%-70%.”
The house makes no changes to its EPS estimates and $0.85 target, and maintains its Neutral call. “We keep our earnings forecasts unchanged as we have assumed US$350 million new job wins in 2011. We remain lukewarm on the stock as: we believe earnings will be unexciting this year due to poor order flow in 2H10; and Swiber needs significant order wins to offset the cost of maintaining a growing fleet.”
The March peak of $0.830 may cap in the near term.
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