Reuters logo
STOCKS NEWS SINGAPORE-CIMB ups target on Sembcorp Marine
April 5, 2012 / 1:51 AM / 6 years ago

STOCKS NEWS SINGAPORE-CIMB ups target on Sembcorp Marine

CIMB Research raised its price target on Sembcorp Marine Ltd , the world’s second-largest rig builder, to S$6.32 from S$6.28 and maintained its outperform rating.

On Thursday, Sembcorp said its PPL Shipyard unit secured a $218.5 million contract to build a jack-up rig.

Sembcorp’s spare capacity had helped the yard to clinch the rig contract, which offers superior margins, CIMB said, adding that Sembcorp still had capacity for one or two more projects for 2013 delivery.

“We increase our non-Petrobras contract assumption to S$2.5 billion from S$2 billion in view of the recent rush in orders,” CIMB said in a report.

“We are expecting further frenzy in rig ordering in the next few months, especially for harsh-environment equipment and ultra-deepwater drilling rigs, which will benefit the builders.”

Sembcorp’s shares were flat at S$5.2, while shares in rival Keppel Corp Ltd, the world’s largest rig builder, were also little changed. Sembcorp’s shares have gained 37 percent so far this year, while Keppel is up 17 percent.

0945 (0145 GMT)

(Reporting by Eveline Danubrata in Singapore; eveline.danubrata@thomsonreuters.com)

***********************************************************

8:38 STOCK NEWS SINGAPORE-Singapore index futures flat

Singapore index futures were flat on Thursday, indicating a lacklustre start for the benchmark Straits Times Index.

Seoul and Tokyo shares opened lower on Thursday, weighed down by a weak Spanish debt auction and dashed hopes of further U.S. stimulus. The Korea Composite Stock Price Index (KOSPI) was down 0.4 percent, while the Nikkei shed 0.8 percent.

0837 (0037 GMT)

Reporting by Eveline Danubrata in Singapore; eveline.danubrata@thomsonreuters.com

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below