the individual whom Viking bought its stake from).. Viking Offshore &

Unlikely to exercise put-and-call option.

given for the divestment exercise, with this transaction, it now seems unlikely

that Viking will exercise its put-and-call option for the remaining 45% interest

in MAPL in the next two years.While no official reasons were

Lower revenue estimate for FY10

revenue is expected to exceed S$100m in FY10, but since MAPL has now

ceased to be a subsidiary company of the group, the latter's revenue will

not be consolidated into Viking's results. As such, the revised revenue

expectation is projected to be in the range of S$80m to S$82m in FY10.

On the other hand, the disposal is not expected to have a material impact

on Viking's net profit (we estimate low single digit net profit margin for

MAPL).. Viking had previously guided that

Recovery in rig orders should support earnings

the outlook for the group is turning more positive as new rig orders are

starting to come in again. Both local rigbuilders, Keppel Corp and Sembcorp

Marine, have collectively secured 10 new rig orders with options for 14

more since Oct 2010, and we note that Viking has obtained work from both

companies before. Meanwhile, Viking is also planning to grow its presence

in China. We maintain our

based on sum-of-the-parts valuation, after updating the market values of

Viking's quoted equity investments. . Despite the hiccup,BUY rating and our fair value estimate of S$0.32,(Low Pei Han)