Stock Name: SembMar
Company Name: SEMBCORP MARINE LTD
Barclays says Sembcorp Marine's (S51.SG) US$596 million ($753 million) contract win from Noble Corp. (NE) is a big positive following a quiet 2Q thus far. The house notes that this contract brings Sembcorp Marine's year-to-date order wins to $2.4 billion and it expects the company to win further orders. Maersk Drilling and Statoil may look for further ultra-high-spec jack-ups, and Sembcorp Marine and Keppel Corp (BN4.SG) are the only yards with recent experience in this category of rigs, Barclays says. "Hence we see this contract award emphasizing the importance the industry still places on operational and delivery track records. We remain positive on the outlook for a sustained rig-order cycle and expect Singapore yards to continue to benefit from the strong demand for offshore drilling rigs." The house rates the stock Equal Weight with a $4.41 price target. The stock is recently up 0.9% at $4.45.
Company Name: SEMBCORP MARINE LTD
| Research House: Barclays | Price Call: HOLD | Target Price: 4.41 |
Barclays says Sembcorp Marine's (S51.SG) US$596 million ($753 million) contract win from Noble Corp. (NE) is a big positive following a quiet 2Q thus far. The house notes that this contract brings Sembcorp Marine's year-to-date order wins to $2.4 billion and it expects the company to win further orders. Maersk Drilling and Statoil may look for further ultra-high-spec jack-ups, and Sembcorp Marine and Keppel Corp (BN4.SG) are the only yards with recent experience in this category of rigs, Barclays says. "Hence we see this contract award emphasizing the importance the industry still places on operational and delivery track records. We remain positive on the outlook for a sustained rig-order cycle and expect Singapore yards to continue to benefit from the strong demand for offshore drilling rigs." The house rates the stock Equal Weight with a $4.41 price target. The stock is recently up 0.9% at $4.45.
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