Stock Name: Swiber
Company Name: SWIBER HOLDINGS LIMITED
DMG & Partners Research in a Mar 27 research report says: "Swiber announced that it has secured another sizeable EPIC contract from an oil major in Gulf of Mexico through a local collaboration with Dragados Offshore, totaling approximately US$273 million for offshore construction work.
"The latest contract win came as no surprise to us as we expected the group to win a total amount of US$850 million worth of contracts for 2012. Swiber had won a US$525 million thus far and we expect them to win another US$325 million before year end. Though we are positive on the latest deal, execution may be a potential concern given its inexperience in that area.
"In addition, margins will continue to be weighed down by operating leases expenses, unless the group has enough equity funding to buy back vessels. Unchanged target price of 66 cents. MAINTAIN NEUTRAL."
Company Name: SWIBER HOLDINGS LIMITED
| Research House: DMG | Price Call: HOLD | Target Price: 0.66 |
DMG & Partners Research in a Mar 27 research report says: "Swiber announced that it has secured another sizeable EPIC contract from an oil major in Gulf of Mexico through a local collaboration with Dragados Offshore, totaling approximately US$273 million for offshore construction work.
"The latest contract win came as no surprise to us as we expected the group to win a total amount of US$850 million worth of contracts for 2012. Swiber had won a US$525 million thus far and we expect them to win another US$325 million before year end. Though we are positive on the latest deal, execution may be a potential concern given its inexperience in that area.
"In addition, margins will continue to be weighed down by operating leases expenses, unless the group has enough equity funding to buy back vessels. Unchanged target price of 66 cents. MAINTAIN NEUTRAL."
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