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DMG cuts Sembcorp Marine target to $5.16
DMG & Partners has lowered its target price for the world’s second-largest rig builder, Sembcorp Marine, to $5.16 from $5.46, but maintained its buy rating.
Sembcorp Marine reported on Thursday a 25% fall in its third-quarter net profit to $222.5 million, hurt by higher costs of sales. This was in line with DMG’s expectations, it said.
DMG has cut its 2011-2013 earnings per share forecast for Sembcorp Marine by 2-8% as it expects lower margins for its new jack-up projects.
The brokerage has also cut its target price for Sembcorp Marine to account for a lower valuation for its 30% stake in Cosco Shipyard.
DMG maintained its rating as the company is seeing more bids for ultra-deepwater rigs and its share price could rise if it wins orders from Brazil’s Petrobras.
At 10:21 a.m., shares of Sembcorp Marine were up 2.4% at $4.20. The shares have fallen about 22% since the start of the year.
Any one holding position over e week end ...
SembMarine (SMM): 3Q11 results above the Street average. But note the wide range of estimates, hence SMM appears to have beat, met and missed forecasts, depending on the research house.
3Q11 net profit came in at $223m, +49% qoq, -25% yoy, vs Bloomberg consensus of $195m.
Revenue reached $1.3b, +57% qoq, +17% yoy, driven by the resumption of revenue recognition on semisub, Songa Eclipse, upon delivery.
Gross margin reached 19.5%, -300bps qoq, due to shift in revenue mix as rig building turnover more than doubled (68% of sales vs 48% in 2Q11).
Operating margins at 16.2% continue to pale compared to KEP O& M’s 26%. Mgt guides to close the year with 15-18% Op margin and says the margin for new builds has fallen to 12-15% now.
Note that bottom line was given a near $40m boost, as interest income surged to $47.2m from $6.1m yoy, from interest received for deferred payment grated to customers.
Ytd order wins amount to $3.2b, with order backlog at $5.2b. Mgt noted a higher level of enquiries for semisubs (vs 2Q11) and believes day-rate strength (~US$500k/day on certain contracts) on recent fixtures are indicative of cycle outlook moving forward. SMM currently has 8 options with the majority expected to expire in early ’12.
Citi keeps at Buy with TP $4.76.
BNP keeps at Buy, raises TP to $4.74 from $4.67, says hard to rule out a special div given $1.9b net cash and zero debt.
HSBC keeps at Overweight with TP $6.05.
Deutsche keeps at Buy, but lowers TP to $5.80 from $6.20.
To play safe already took profit today at $4.10 before the result announcement in case all sell on news.
REFRESH : )
2nd Q 11
REDUCED revenues from rig-building sent net profit for the second quarter down 15 per cent at Sembcorp Marine.
Earnings for the three months to June 30 were S$149.7 million, down from $176.1 million a year ago and well under the $188 million forecast from a Bloomberg poll of two analysts.
3rd Q 11
reported a 25 percent fall in its net profit, partly due to higher cost of sales.
The company, controlled by Singapore-listed infrastructure conglomerate Sembcorp Industries Ltd , earned S$222.5 million ($175 million) in the three months ended September compared to S$296 million million a year ago.
The profit figure beat the average estimate from analysts of S$196 million.
~A good sign for investor on QoQ 11, can lock in profit if investment objective has been achieved... ...
NB: Analysts report tmr, do take note.
Earnings beat analysts estimation.
Buy on dip
or
Sell on news
depending on ur appettite
adobepie ( Date: 03-Nov-2011 22:22) Posted:
| -25%....tomoro can short? |
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-25%....tomoro can short?
More to watch this Nov.
Exercise of rig options.
Or
Plate cutting ceremony ? ??
we estimate net profit of S$230m, up 54% QoQ but down 24% YoY as 3Q10 was boosted by a one-off
gain of S$53m from forex settlement with SocGen and resumption of recognition for a
CJ70 rig.
Wow ! !! dmg almost hit the jackpot krisluke ( Date: 28-Oct-2011 22:40) Posted:
Sembcorp Marine: S$54m gain from tax refund Jason Saw (6232 3871, jason.saw@sg.oskgroup.com) The news: Sembcorp Marine (BUY, TP: S$5.46) SMM to gain from IRAS refund. SMM will recognise a gain of S$54.4m in 2011 as Jurong Shipyard, a wholly owned subsidiary, has been allowed deduction of its losses from forex transactions for tax purposes for the Years of Assessment 2008 and 2009. The tax had been provisionally paid and a refund will be received from IRAS. We estimate the refund to boost our FY11F EPS by around 8%. SMM will release its 3Q11 results on Thursday, 3 Nov 2011, and we estimate net profit of S$230m, up 54% QoQ but down 24% YoY as 3Q10 was boosted by a one-off gain of S$53m from forex settlement with SocGen and resumption of recognition for a CJ70 rig. Our thoughts: Maintain BUY on SMM with a TP of S$5.46. We prefer SMM over Keppel as we expect stronger newsflow for SMM given more capacity to bid for jobs and higher impact from potential Petrobras win. > > > dmg is supporting sembcorp marine |
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Sembcorp Marine Q3 net profit down 25 pct
SINGAPORE, Nov 3 (Reuters) - Sembcorp Marine Ltd , the world's second largest rig-builder, on Thursday reported a 25 percent fall in its net profit, partly due to higher cost of sales.
The company, controlled by Singapore-listed infrastructure conglomerate Sembcorp Industries Ltd , earned S$222.5 million ($175 million) in the three months ended September compared to S$296 million million a year ago.
The profit figure beat the average estimate from analysts of S$196 million.
Sembcorp Marine, which competes with top-ranked Keppel Corp, and other Asian rivals, has a net order book of S$5.2 billion with completion and deliveries stretching to the second quarter of 2014.
Rig builders around the world have seen a recovery in demand since late last year as oil prices stabilised.
($1 = 1.272 Singapore Dollars) (Reporting by Harry Suhartono and Cerelia Lim)
Pivot: 2740
Our preference: Long positions above 2740 with targets @ 2915 & 3010 in extension.
Alternative scenario: Below 2740 look for further downside with 2665 & 2576 as targets.
Comment: even though a continuation of the consolidation cannot be ruled out, its extent should be limited.
Key levels
3100
3010
2915
2804.01 last
2740
2665
2576
Sembcorp Marine: First Nine Months 2011 Net Profit At $523 Million.
03 Nov 2011 17:11
Sembcorp Marine achieved a net profit of $523 million for the first nine months of 2011 with Earnings per share at 25.14 cents. Return on equity was 29.2%. For the nine months, Group turnover at $2,963 million was 17% lower as compared with the same period in 2010. The lower turnover was attributable to the timing in progressive revenue recognition of projects in the three different sectors. The rig building sector saw a 33% decline in turnover as nine of the thirteen new jack-up rigs secured since the fourth quarter of last year are still in the planning stage with no revenue recognition. The corresponding period in 2010 saw more turnkey semi-submersible rig building projects, the resumption of revenue recognition on the delivery of semi-submersible PetroRig III and the sale of CJ-70 harsh environment jack-up rig whereas in 3Q 2011, one semi-submersible rig unit, the Songa Eclipse, saw revenue recognition upon completion and delivery...Attachments:
Within half a week from the optimistic end to outcome of the EU summit, uncertainty from Europe debt crisis uncertainty returned in full swing after Greek PM unexpectedly call for a referendum to the Greek people regarding last week’s debt deal.
The Greeks had been unhappy about accepting the deal because it means more painful austerity measures. Ahead of thereferendum that is likely to take place only over the next 2 months, the Greek PM will submit himself to a vote of confidence this Friday that coincides with the 2nd day of the G20 summit.
We had rightfully highlighted that STI’s recent strong rebound should pause around 2920. We added that the anticipated pullback should find immediate support at 2780-2830 but a break below 2780 will be a negative sign that introduces uncertainty. Ending at just 9pts above 2780 yesterday, STI looks set to fall below this immediate support level in the current session, which suggests that the recent rebound has ended at last Friday’s high of 2905
Aside from the volatility cause by the fresh uncertainty out of Europe, the market will also be whipsawed by the corporate reporting season that is still ongoing and the heavy week on economic data releases. The next immediate support in 1-2 sessions is anywhere from 2700-2750 with resistance at 2780-
2800.
DBS VICKERS
Morning commentary
This baby is too dynamic.
Rebound up first, but up the lorry even faster
krisluke ( Date: 01-Nov-2011 19:37) Posted:
Uncertainty about how Europe can raise the funds needed to contain the sovereign crisis led to profit taking in global equities yesterday.
This is within our expectations on how the market would trade in the immediate term
i.e. a halt in the recent rebound as investors start to scrutinize the EU summit measures last week.
Recap immediate term range for the STI is at 2780- 2830 support 2920-2945 resistance.
Thus, we expect bargain hunting when the STI dips closer to around the 2800 level.
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Uncertainty about how Europe can raise the funds needed to contain the sovereign crisis led to profit taking in global equities yesterday.
This is within our expectations on how the market would trade in the immediate term
i.e. a halt in the recent rebound as investors start to scrutinize the EU summit measures last week.
Recap immediate term range for the STI is at 2780- 2830 support 2920-2945 resistance.
Thus, we expect bargain hunting when the STI dips closer to around the 2800 level.
closed 2 cents above 40 days ema.
Got to watch mid bollinger band
cci has turns oversold.
today is tuesday.
thursday report earning... ...
.... .....
-33cts ! Up fast down even faster...!
sudden plunge to 3.89 closing today.. down more than 7 % ... wt...
Has vivian hsu took profit today
hand signal " SIX"
Iocbc is truly fundamental .... She mentions oct is the busiest month for sembmar.
dmg is truly a faithfully follower of rig updates and begins to love sembmar
WELL...
dbs vicker ? ?? I think they're advicing their customers for profit taking due to contra play
The BOLLINGER BAND POLICE MAN ? ??
Kim Eng .... ...
Worry !!!
This thursday EQ3 result GOOD, I believe KE surely will APPEAR(L)
nb : THE last letter of APPEAR can be inter changable
