SMM: may outperform relative to KEP today, after announcing a contract worth US$291.6m to build an accomodation semi-sub rig for Prosafe. The vessel will be delivered in 2Q14. The contract comes with options for two more units.
The semi-sub has a capacity for 450 persons and will be equipped with DP3 systems, to work in harsh environments alongside various fixed and floating platforms. Such rigs are used to provide additional living quarters for offshore personnel, primarily during hook-up and commissioning in the development phase, as well as for maintenance and upgrading during the production phase.
This contract brings YTD orderwins for SMM to $3.7b, compared to KEP’s $8.4b as at end 3Q. SMM appears to have followed KEP’s footsteps with regards to customer payment terms, ie. 20% initial deposit and 80% payment on delivery. This may have helped SMM secure a new customer in Prosafe.
The stock trades at 10.3x P/E.
DMG reiterates Buy with TP $5.16.
Post Reply
1161-1180 of 3003
Charge up too much. It will collapse soon..Day lights is too wide apart..
bishan22 ( Date: 11-Jan-2012 12:16) Posted:
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Still charging like mad..... better wait for a while. 
Anyone know why is SMM spiking today?
Gd to consider for a short..
mtan71 ( Date: 11-Jan-2012 11:28) Posted:
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how abt today ..where it is heading
impressive run up today. Too bad I sold too early
On Tuesday, Sembmar re-test the resistance at $3.90 and closed at $3.88 with LOW volume of 1.89 million shares traded.
A black candle stick with long lower shadow affirms on the profit taking.
RSI & MACD are flat as RSI trend sideways.
Important Resistance of Sembmar: $3.90
Immediate Support of Sembmar: $3.65
Currently prices are resisted by 50 days MA at $3.90.
Since 13/Oct, prices have ................... READ MORE
OSK/DMG (23 Dec): Our Top Pick is SMM (TP $5.25)
http://www.remisiers.org/cms_images/research/Research-26Dec 30Dec_2011/OffshoreMarine231211dmg.pdf
" Petrobra s engaging in direct negotiations to get the 21 rigs. In a new twist to the Petrobras tender for 21 Brazilian-built drilling rigs, news sources reported that Petrobras has decided to cancel the tender process and begin immediate direct negotiations with Sete Brasil and Ocean Rig to get the best offers. No reasons were provided for the change in tender process. In our view, while no other details were available, we believe the change in approach to get the rigs could be positive, as this may signal shorter time-to-award for the shipyards. Yesterday, Sete Brasil has awarded a newbuild semisub contract to Keppel and last week, Sembcorp Marine (SMM) broke ground on its new US$550m Brazilian shipyard.
We believe Keppel and SMM are well positioned to win a significant portion of thePetrobras newbuild rigs given their strong track record and commitment to invest in Brazil. We are overweight on the Offshore & Marine sector given the robust sector outlook and undemanding valuations. Our top pick is SMM."
Warrant Strategy: Put - 4.50 - 16/02/2012 - OY3W - Macquarie Bank - SEMBCORP MARINE MBL EPW120216
Pivot: 4
Our preference: Short positions below 4 with targets @ 3.47 & 3.25 in extension.
Alternative scenario: Above 4 look for further upside with 4.2 & 4.35 as targets.
Comment: the RSI lacks upward momentum.
Key levels
4.35
4.2
4
3.89 last
3.47
3.25
3.05
Click to view chart in actual size.
Sembcorp Marine: Ground-breaking at new yard in Brazil
Summary: Sembcorp Marine (SMM) has announced the ground-breaking of Estaleiro Jurong Aracruz to mark the commencement of the yard’s construction works. This new yard is close to the rich oil and gas basin of Espirito Santo, one of Brazil’s giant pre-salt reservoirs. Recall that the freehold site was acquired in 2010 with this ground-breaking event, we think that the award of Petrobras’ rig tender should be finalised soon, probably by 1Q12. Although full completion of the yard is scheduled for end 2014, it will be developed in stages and we think certain offshore work could be done in tandem with yard construction. Preliminary projection of the development costs is estimated to be around US$550m, and will be funded with debt and internal funds generated from operations of existing yards. Meanwhile, SMM also announced yesterday that Sembawang Shipyard has won a US$140m contract from Equinox Offshore Accommodation to convert a ropax vessel to a DP2 accommodation and repair vessel. Maintain BUYwith S$5.63 fair value estimate. (Low Pei Han)
Dbs Vickers
SembCorp Marine's Sembawang Shipyard unit has won a US$140m contract for a ship conversion to be completed next year. The contract is awarded by Singapore-based ship conversion services firm Equinox Offshore Accommodation. Together with the US$292m contract clinched last week, these contracts will bring new order wins for this year to S$3.8b, and raise order book to S$5.9b (excluding 4Q11 deliveries).
Despite the recent contracts, the group's YTD new orders are still 16% short of our forecast of S$4.5b. With two more weeks till year end, the award of Petrobras contracts is likely to be deferred till 1Q12 and two of SMM's 8 outstanding options for jack ups will expire by Dec 2011. No change to our forecast and Buy recommendation, but there is downside risk to our earnings in the event order wins continue to slow in the next quarter.
Sembcorp Marine: Ground-breaking at new yard in Brazil
Summary: Sembcorp Marine (SMM) has announced the ground-breaking of Estaleiro Jurong Aracruz to mark the commencement of the yard’s construction works. This new yard is close to the rich oil and gas basin of Espirito Santo, one of Brazil’s giant pre-salt reservoirs. Recall that the freehold site was acquired in 2010 with this ground-breaking event, we think that the award of Petrobras’ rig tender should be finalised soon, probably by 1Q12. Although full completion of the yard is scheduled for end 2014, it will be developed in stages and we think certain offshore work could be done in tandem with yard construction. Preliminary projection of the development costs is estimated to be around US$550m, and will be funded with debt and internal funds generated from operations of existing yards. Meanwhile, SMM also announced yesterday that Sembawang Shipyard has won a US$140m contract from Equinox Offshore Accommodation to convert a ropax vessel to a DP2 accommodation and repair vessel. Maintain BUYwith S$5.63 fair value estimate. (Low Pei Han)
Summary: Sembcorp Marine (SMM) has announced the ground-breaking of Estaleiro Jurong Aracruz to mark the commencement of the yard’s construction works. This new yard is close to the rich oil and gas basin of Espirito Santo, one of Brazil’s giant pre-salt reservoirs. Recall that the freehold site was acquired in 2010 with this ground-breaking event, we think that the award of Petrobras’ rig tender should be finalised soon, probably by 1Q12. Although full completion of the yard is scheduled for end 2014, it will be developed in stages and we think certain offshore work could be done in tandem with yard construction. Preliminary projection of the development costs is estimated to be around US$550m, and will be funded with debt and internal funds generated from operations of existing yards. Meanwhile, SMM also announced yesterday that Sembawang Shipyard has won a US$140m contract from Equinox Offshore Accommodation to convert a ropax vessel to a DP2 accommodation and repair vessel. Maintain BUYwith S$5.63 fair value estimate. (Low Pei Han)
Sembcorp in $140m conversion score
Sembcorp Marine has scooped a $140 million contract to convert a ship into a floating accommodation and repair unit for work off Brazil for Petrobras.
Eoin O'Cinneide 19 December 2011 10:05 GMT
The Singaporean yard group’s affiliate Sembawang Shipyard will take delivery of the cargo/passenger vessel, known as a ro-pax, in January.
Singapore’s Equinox Offshore is named by Sembcorp as the deliverer of the vessel, the current name of which has not been revealed.
Conversion work will finish in the fourth quarter when the unit, to be renamed ARV3, will move to offshore Brazil to begin a five-year contract for Petrobras.
It will be able to accommodate 450 people when finished and will be a diesel electric DP2 high specification vessel.
Sembcorp breaks ground at Brazil yard
Sembcorp Marine subsidiary, Jurong Shipyard, has started construction of its first overseas integrated new yard facility in Brazil.
Josh Lewis 20 December 2011 07:34 GMT
The Estaleiro Jurong Aracruz shipyard is being built on an 82.5 hectare site with 1.6 kilometres of coastline in Aracruz, Espirito Santo state.
Sembcorp said it had chosen to build a yard in Brazil due to recent discoveries being made in the country’s giant pre-salt fields, requirements for local content in Brazil’s offshore platform projects and its close proximity to fields in the Atlantic, Gulf of Mexico and West African sectors.
Artists impression: Sembcorp has started construction on its Estaleiro Jurong Aracruz shipyard in Brazil
Image courtesy of SEMBCORP MARINE
Estaleiro Jurong Aracruz will have the capable of building drillships, semi-submersible and jack-up rigs, platforms, supply vessels, topsides modules and integrating floating production, storage and offloading vessels. The yard will also carry out traditional activities such as rig repair and modification works.
The new yard will include a drydock, one kilometre berthing quay, along with ancillary piping facilities and steel fabrication workshops.
Sembcorp chief executive Wong Weng Sun said the company had already constructed a total of 18 exploration, production and storage platforms for Brazilian oilfields which currently contributed about half of the country’s daily output.
“The ground-breaking for the development of Estaleiro Jurong Aracruz will provide a clear signal to the Brazilian oil and gas market that Sembcorp marine is completely committed to continue its services to them, in their country,” Wong added.
“With our two decades of experience servicing the Brazilian oil and gas industries, Estaleiro Jurong Aracruz will substantially strengthen our ability to meet our major clients' needs especially in developing the recently discovered giant pre-salt oil and gas reservoirs.”
Sembcorp said the development costs of the new yard were expected to total about $550 million, based on preliminary estimates.
The yard will be constructed over a three-year period, with full completion scheduled for the end of 2014.
Published: 20 December 2011 07:34 GMT | Last updated: 20 December 2011 07:34 GMT
SembCorp Marine: Announced it has won a US$140m contract from Equinox Offshore to convert a ropax vessel to an Accommodation and Repair Vessel. Vessel is expected to arrive in the shipyard in Jan12 for the conversion and modification works, which is scheduled for completion in 4Q12. We note that latest wins brings Ytd Order wins of S$3.9b, while orderbook now stands at approx.S$5.75b.
On another note, grp has marked an important milestone in its growth and expansion strategy with the ground breaking of Estaleiro Jurong Aracruz, the Group’s first overseas Integrated New Yard Facility in Brazil. The construction and develop incorporated new Brazilian shipyard is in-line with grp’s strategy to further strengthen its foothold in Brazil.
DMG maintains Buy, and increase TP to $5.25 from $5.16. Note that more orders 4Q11 order win more than S$1.1b. Add that grp has strong revenue visibility for FY12 as 79% of revenue forecast is backed by existing order book and recurring ship repair work.
Nomura similarly reiterate Buy, TP $4.50, Ordering activity still going strong. Believe the current order along with the US$292mn contract from Prosafe last wk is indicative of the strength in demand for deepwater exploration, production and accommodation units.
On another note, grp has marked an important milestone in its growth and expansion strategy with the ground breaking of Estaleiro Jurong Aracruz, the Group’s first overseas Integrated New Yard Facility in Brazil. The construction and develop incorporated new Brazilian shipyard is in-line with grp’s strategy to further strengthen its foothold in Brazil.
DMG maintains Buy, and increase TP to $5.25 from $5.16. Note that more orders 4Q11 order win more than S$1.1b. Add that grp has strong revenue visibility for FY12 as 79% of revenue forecast is backed by existing order book and recurring ship repair work.
Nomura similarly reiterate Buy, TP $4.50, Ordering activity still going strong. Believe the current order along with the US$292mn contract from Prosafe last wk is indicative of the strength in demand for deepwater exploration, production and accommodation units.
Prosafe SE :Prosafe orders harsh environment semi-submersible accommodation rig
* Reuters is not responsible for the content in this press release.
Wed Dec 14, 2011 11:30am EST
Prosafe has entered into a turnkey contract for the construction of a semi-submersible accommodation rig at Jurong Shipyard Pte Ltd. in Singapore. The new unit will be the most advanced and efficient harsh environment accommodation rig in the world and will be constructed to comply with Norwegian regulations.
The rig will be constructed according to the GVA 3000E design and will be equipped with a DP3 (dynamic positioning) system as well as 12 point mooring arrangement. This will allow for operations in harsh environments both in DP and anchored mode, providing maximum cost efficiency and flexibility. The unit will have the capacity to accommodate 450 persons in single man cabins.
GVA is an experienced designer of semi-submersible rigs and its track-record includes numerous vessels operating in harsh environments. The GVA 3000E design is an enhanced and enlarged version of previous GVA designs and incorporates long operational experience. Prosafe currently has three GVA rigs in the fleet.
Jurong Shipyard is one of the world's leading constructors of semi-submersible rigs. The yard has to date delivered 13 semi-submersible DP vessels and has three on order. Jurong has delivered a number of other offshore vessels, including vessels designed for operation on the Norwegian Continental Shelf. Prosafe has chosen Jurong Shipyard due to its demonstrated capabilities and strong commitment as a rig builder.
Delivery from the yard is scheduled for the second quarter of 2014 and all-in cost including yard cost, owner-furnished equipment, project management and financing is estimated at USD 350 million. 20 per cent of the yard cost is payable at signing of the contract, while the remaining 80 per cent will be paid at delivery. The investment can be funded over the current balance sheet without impacting the dividend policy. The contract with Jurong also includes options for two more units, valid for approximately 12 and 18 months, respectively.
The new rig is ordered on the back of a positive market outlook. The majority of production installations in the North Sea are in a mature stage. At the same time, many of the larger fields are expected to continue producing well beyond the initial estimated depletion date. This development is supportive for the long-term demand for assets and services related to maintenance, modifications and redevelopments. Furthermore, the recent large discoveries in Norway, combined with continued high exploration effort, indicate strong demand related to hook-up and commissioning activities.
With the addition of the new harsh environment rig, Prosafe reinforces its leading position in the high-end accommodation rig segment, strengthening the company's ability to meet clients' needs related to increasingly complex operations in a growing market.
Prosafe is the world's leading owner and operator of semi-submersible accommodation/service rigs. Operating profit reached USD 221.1 million in 2010. The company operates globally, employs 500 people and is headquartered in Larnaca, Cyprus. Prosafe is listed on the Oslo Stock Exchange with ticker code PRS. For more information, please refer to www.prosafe.com.
Larnaca, 14 December 2011
Georgina Georgiou, General Manager
Prosafe SE
For further information, please contact:
Karl Ronny Klungtvedt, Chief Executive Officer
Prosafe Management AS
Phone: +47 908 81 657
Sven Børre Larsen, Chief Financial Officer
Prosafe Management AS
Phone: +47 909 43 673
Cecilie Helland Ouff, Finance and IR Manager
Prosafe AS
Phone: +47 991 09 467
The rig will be constructed according to the GVA 3000E design and will be equipped with a DP3 (dynamic positioning) system as well as 12 point mooring arrangement. This will allow for operations in harsh environments both in DP and anchored mode, providing maximum cost efficiency and flexibility. The unit will have the capacity to accommodate 450 persons in single man cabins.
GVA is an experienced designer of semi-submersible rigs and its track-record includes numerous vessels operating in harsh environments. The GVA 3000E design is an enhanced and enlarged version of previous GVA designs and incorporates long operational experience. Prosafe currently has three GVA rigs in the fleet.
Jurong Shipyard is one of the world's leading constructors of semi-submersible rigs. The yard has to date delivered 13 semi-submersible DP vessels and has three on order. Jurong has delivered a number of other offshore vessels, including vessels designed for operation on the Norwegian Continental Shelf. Prosafe has chosen Jurong Shipyard due to its demonstrated capabilities and strong commitment as a rig builder.
Delivery from the yard is scheduled for the second quarter of 2014 and all-in cost including yard cost, owner-furnished equipment, project management and financing is estimated at USD 350 million. 20 per cent of the yard cost is payable at signing of the contract, while the remaining 80 per cent will be paid at delivery. The investment can be funded over the current balance sheet without impacting the dividend policy. The contract with Jurong also includes options for two more units, valid for approximately 12 and 18 months, respectively.
The new rig is ordered on the back of a positive market outlook. The majority of production installations in the North Sea are in a mature stage. At the same time, many of the larger fields are expected to continue producing well beyond the initial estimated depletion date. This development is supportive for the long-term demand for assets and services related to maintenance, modifications and redevelopments. Furthermore, the recent large discoveries in Norway, combined with continued high exploration effort, indicate strong demand related to hook-up and commissioning activities.
With the addition of the new harsh environment rig, Prosafe reinforces its leading position in the high-end accommodation rig segment, strengthening the company's ability to meet clients' needs related to increasingly complex operations in a growing market.
Prosafe is the world's leading owner and operator of semi-submersible accommodation/service rigs. Operating profit reached USD 221.1 million in 2010. The company operates globally, employs 500 people and is headquartered in Larnaca, Cyprus. Prosafe is listed on the Oslo Stock Exchange with ticker code PRS. For more information, please refer to www.prosafe.com.
Larnaca, 14 December 2011
Georgina Georgiou, General Manager
Prosafe SE
For further information, please contact:
Karl Ronny Klungtvedt, Chief Executive Officer
Prosafe Management AS
Phone: +47 908 81 657
Sven Børre Larsen, Chief Financial Officer
Prosafe Management AS
Phone: +47 909 43 673
Cecilie Helland Ouff, Finance and IR Manager
Prosafe AS
Phone: +47 991 09 467
This information is subject of the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.
SMM
Rig builders
Rig builders: Spore O& M names likely to see weakness today, after Chevron and Transocean declined 2.9% and 3.9% last night in US trading.
Brazilian prosecutors urged a federal court to halt operations of Chevron and Transocean in Brazil, and pay 20b reais (US$10.7b) in damages after an oil spill last mth.
Chevron, the 2nd largest US crude producer after Exxon Mobil, is being audited by Brazil’s petroleum regulator for the oil leak at the Frade project off the coast of Rio de Janeiro last mth.
Transocean, the operator of the rig at Chevron’s Frade project, “continues to cooperate with the authorities.”
Both SMM and KEP count Transocean amongst their customers.
Brazilian prosecutors urged a federal court to halt operations of Chevron and Transocean in Brazil, and pay 20b reais (US$10.7b) in damages after an oil spill last mth.
Chevron, the 2nd largest US crude producer after Exxon Mobil, is being audited by Brazil’s petroleum regulator for the oil leak at the Frade project off the coast of Rio de Janeiro last mth.
Transocean, the operator of the rig at Chevron’s Frade project, “continues to cooperate with the authorities.”
Both SMM and KEP count Transocean amongst their customers.
Korean Exchange require Daewoo to confirm by this afternoon if this is true. Daewoo's win means loss to SembMarine & Keppel?
Daewoo Shipbuilding In Talks With Petrobras To Build 21 Rigs, Drill Ships
SEOUL -(Dow Jones)- Daewoo Shipbuilding & Marine Engineering Co. (042660.SE) said Friday that it is in talks with Brazil's state-run oil company Petroleo Brasileiro SA (PBR), or Petrobras, to build oil-drilling facilities for the country's offshore development project.
" The project involves a total 21 semisubmersible drilling rigs and drill ships, and we aim for a portion of the offshore facilities," a company spokesman said by telephone. The company didn't provide further details on the negotiations.
-By Kyong-Ae Choi, Dow Jones Newswires 822-3700-1903 kyong-ae.choi@dowjones.com
(END) Dow Jones Newswires-December 08, 2011 19:28 ET (00:28 GMT
I notice this guy is very strong today despite STI drop more than 50. why is this ?
Tomorrow I try :) see can go up or not
niuyear ( Date: 07-Dec-2011 16:36) Posted:
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