Swiber has raised S$100m from the domestic bond market. We believe the
funds could be used to finance part of the
equipment for its new deepwater drilling barge. A recent contract worth
a total of US$250m from CUEL Thailand for
offshore installation and engineering work has increased Swiber's
earnings visibility till 2013 and bringing its
order book to about US$760m, compared to only US$176m at end-1Q07. With
plans to expand its fleet to six vessels by
end-08, we believe Swiber could be grooming its 30% Indonesian-based
associate, OBT Holdings to tap into the strong
coal transhipment sector. Maintain Outperform. Our earnings estimates
remained intact and our target price of S$5.05
is still based on 15x CY09 earnings on the back of 59% 3-year CAGR
through to 2010.
Quick Takes
* Olam International (S$2.07) - Preferential offering at
S$1.97 per share
* Land Transport Sector - Cash for scrapping cars being
studied
News of the Day
* MAS likely to retain $ policy, or tighten it
* US Treasury to call for broad overhaul of financial
regulation
* Singapore sees small flow of QDII funds
* Swissport finds the going tough at Changi
* Cosco may quote contracts in yuan
* K-Reit may raise more funds after its rights issue
* Cash exit offer for ICIL 'not reasonable': Omega
Technical Trading Ideas
* STI Weekly Outlook, China Hongxing Sports and C&G Industrial
Holdings
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