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when come to announ new contracts
it appear Kep smarter than semb ??
Sembcorp Marine Ltd
Sembcorp's orders, for the design and construction of five drillships, will be built in Brazil and be chartered to Brazilian state-led oil firm Petrobras
The rest of Sete Brasil is owned by an investment fund backed by Brazilian pension funds such as Previ and banks Santander
(Reporting by Charmian Kok and Jeb Blount Editing by Chris Gallagher) ((charmian.kok@thomsonreuters.com)(+65 6403 5666)(Reuters Messaging: charmian.kok.reuters.com@reuters.net)) Keywords: SEMBCORPMARINE ORDERS/SETE
SMM
http://info.sgx.com/webcoranncatth.nsf/VwAttachments/Att_FFED3A0099CBE17A48257A53007FB2D6/$file/SCMPressRelease8Aug2012.pdf?openelement
Semcorp Marine secures contract worth USD4.032billion !!!
The Samba finale!
Petrobras’ semi-sub boost for KEP orderbook at new
record high.
new semisubmersibles worth US$4.1bn. Including the first
semisub order secured in December 2011, we estimate
this series of rigs contracts will yield pretax profits of
S$500m, based on 8% EBIT margin, over FY13 to FY19.
Total current orderbook of S$13.4bn has now exceeded
its previous peak, with a high book-to-bill ratio of 2.2x.
KEP has finally firmed up contracts for 5SMM next in line for the Samba dance.
also signed contracts with Sete Brazil late last week for six
drillships to be built at SMM’s greenfield yard in Brazil.
This will pave the way for SMM to finalise contracts for
five more drillships, estimated at US$4.0bn. The contracts
could potentially boost SMM’s FY12 YTD order wins to
S$8.0bn, a record year for SMM, and bring its
outstanding order backlog to S$11.5bn, translating to a
strong book-to-bill ratio of 2.4x.
Petrobras hasThe next lap – FPSO projects worth US$4.5bn.
from the 28-rig newbuilding program,
reported that Petrobras is set to imminently award
contracts worth US$4.5bn for the construction of topsides
for the first 6 of 8 FPSO vessels the contracts for the
remaining 2 units to be awarded in the next 18 months.
KEP and SMM are among the three leading bidders in line
to secure 1 to 2 floater integration jobs each, while the
remaining two will be split between the best performing
among the initial contract winners. Each FPSO is worth
about US$750m.
ApartUpstream hadTime for SMM to play catch up.
BUY calls on KEP (TP S$13.20), SembCorp Industries (TP
S$5.90) and SMM (TP S$5.85), we expect SMM’s share
price to catch up on relative performance vs. SCI, being a
direct beneficiary of the forthcoming Petrobras contract
for both drillships and FPSOs.
At current price, SMM offers a cheaper direct proxy to
ride on the upcycle of deepwater rigs – trading at 13.3x
FY13 PE with an attractive dividend yield of 5% vs. 15x
FY13 PE for the offshore & marine earnings via
SembCorp Industries, after stripping off the value of
Utilities. SCI offers a lower upside of 13% to our target
price, and dividend yield of 3%.
kepple already announce contract from Sete Brazil, next announcement from Semcorp marine soon!!
There is no doubt that Sembmarine’s
and Keppel’s order wins will hit a
record this year. We expect Keppel to
clinch S$10.2bn and Sembmarine
S$11.2bn. Maintain Overweight, with
stronger-than-expected contract
awards being the key catalyst. SCI is
still our top pick for its valuation and
resilient utilities business.
What Happened
Petrobras announced that it has
come to agreement with Sete Brasil,
Queiroz Galvao, Petroserv, Odfjell
and Seadrill on 15-year chartering of
12 floating platforms to be built in
Brazil with national content of
55-65%. These 12 rigs are part of the
21 units negotiated with Sete Brasil.
Petrobras also confirmed that six
semi-subs will be built by Keppel’s
BrasFELS in Angra dos Reis and six
drillships will be built by
Sembmarine’s Jurong Aracruz.
Delivery will start in 2016. Petrobras
has evaluated the shipyards’ capacity
including deadlines, local content
ratios, suppliers of equipment
packages, environment licensing and
financials.
What We Think
We expect Brazilian orders to
dominate sector newsflow in the
coming weeks. The remaining five
semi-subs/drillships each by Keppel
and Sembmarine could be
announced in a staggered fashion,
split by rig operators.
Out of the six semi-subs by Keppel,
three will be operated by Queiroz
Galvao, two by Petroserv and one by
Odebrecht. Three of Sembmarine’s
drillships will be operated by Odfell
and three by Seadrill. Petrobras
could also award two FPSO topsides
each to Keppel and Sembmarine,
potentially above US$750m (see our
20 Jul report).
Although operating margins for
Petrobras contracts are high
single-digit, we see upside from
efficiency as repeated units will be
delivered by 2017. LT margins
guided by Keppel are 10-12%. SMM
is more bullish, guiding 14-15%.
What You Should Do
Stay invested. We believe that
sizeable contracts can boost share
prices.
http://gcaptain.com/petrobras-signs-newbuild-contracts/
http://www.agenciapetrobras.com.br/default_en.asp
U need to sign up.
Rio de Janeiro, August 3, 2012 – Petróleo Brasileiro S.A. – Petrobras today entered into agreements with Sete Brasil, Queiroz Galvăo, Petroserv, Odebrecht, Odfjell and Seadrill for the chartering and operation of 12 floating drilling platforms to be constructed in Brazil with a national content of between 55 and 65%. After construction, the rigs will be chartered by Petrobras for 15 years. These 12 rigs are part of a package of 21 platforms negotiated with Sete Brasil.
Of the six semi-submersible platforms to be built by Estaleiro BrasFELS in Angra dos Reis (RJ), three will be operated by Queiroz Galvăo, two by Petroserv and one by Odebrecht.
The other six will be of the drilling vessel type and will be built by Estaleiro Jurong Aracruz (ES). Three will be operated by Odfjell and the other three by Seadrill.
Petrobras conducted a prior analysis of the shipyards in order to evaluate their capacity to meet the contractual commitments associated with the construction of the platforms, including the deadlines and minimum national content ratios. Various aspects were verified, including the suitability of the installations, evidence of commitments with suppliers of inputs and main equipment packages, environmental licensing, management of HSE (health, safety and the environment) and contractual management, as well as legal and financial aspects.
The 12 units will be delivered as of 2016 and will mostly be used for drilling wells in the pre-salt areas of the Santos Basin, including the onerous assignment areas. They can operate in depths of up to 3,000 meters, with a drilling capacity of up to 10,000 meters.
Sincerely,
Investor Relations.
CIMB Research and DMG & Partners Securities cut their target prices on Singapore's Sembcorp Marine Ltd
CIMB cut its target price to S$5.85 from S$6.50, after reducing its earnings per share (EPS) estimates by 6-11 percent for Sembcorp's 2012-2014 fiscal years. CIMB said Sembcorp's first-half core net profit was weaker than expected as the company executed lower-margin projects secured during the 2009-2010 order drought.
The weakening U.S. dollar and euro also dragged margins down, it added. But sustained high oil price, stronger pick-up in the second half of 2012 and order flows could be the stock's catalyst, said CIMB, which has an outperform rating on Sembcorp.
DMG lowered its target price to S$5.70 from S$5.80, after cutting its EPS estimates by 5 percent for the 2012 fiscal year and by 10 percent for 2013 on lower margin assumptions, and kept its buy rating. Sembcorp maintained its operating margin target of 14-15 percent for 2012 as it expects margins to improve once the higher-priced jack-up rig orders are executed, the broker noted.
(Reporting by Eveline Danubrata in Singapore eveline.danubrata@thomsonreuters.com) ($1 = 1.2495 Singapore dollars) Keywords: MARKETS SINGAPORE STOCKSNEWS/SEMBCORPMARINE
Sembcorp Marine
Sembcorp Marine: Expecting more in 2H12
Sembcorp Marine (SMM) reported a 46.4% YoY rise in revenue but saw a 4.6% fall in net profit to S$142.8m in 2Q12, such that 1H12 net profit accounted for about 40% of both ours and the street’s full year estimates. However we had noted in our earlier report “More going for SMM in 2H12” (27 Jun 2012) that we expect SMM’s earnings to pick up in 2H12 as higher margin contracts contribute to the group’s results.
Operating margin was 13.1% in 2Q12 but the group is still striving to achieve 14-15% for the year. Enquiries remain healthy and we expect them to consequently add to the group’s current order book of S$6.6b (vs S$5.1b as at end 2011). Meanwhile, construction at the Singapore and Brazil yards are progressing well. We tweak our estimates and update the market value of Cosco Corp in our SOTP valuation.
As such, our fair value estimate slips slightly from S$5.71 to S$5.69. Maintain BUY. (Low Pei Han)
watch out for likely petrobras contract wins
Expect good news from
Petrobras
Management is confident of the final
award for the remaining five
drillships (about US$4bn) from Sete
Brasil in 2H12, together with two
FPSO topsides (more than US$750m)
from Petrobras. YTD, Sembmarine
has secured about S$3bn worth of
orders along with S$5.7bn backlog.
We keep our order forecast of
S$11.2bn for 2012 (Petrobras:
S$7.2bn, non-Petrobras: S$4bn).
DYODD gd luck!