Swiber   

Swiber

At a Glance

• 1Q10 recurring net profit down 30% y-o-y, but within expectations. • YTD order wins of US$307m, net orderbook of US$856m. • 80% of FY10 revenues backed by secured orders; expect sequential earnings improvement. • Maintain BUY, TP of S$1.42.

Comment on Results

Right in line. 1Q10 headline net profit of US$8.0m was down 18% y-o-y. However, excluding exceptionals, we estimate recurring net profit to be US$4.3m, down 30% y-o-y, but exactly in-line with expectations. While revenue was flattish y-o-y at US$84.5m, gross margins improved 1ppt to 21.2%. EBIT margin of 8.9% was 4.4ppt lower y-o-y due to an increase in opex to support expansion and a larger net forex loss. Strong operating cash flow. Swiber recorded strong 1Q10 operating cash flows of US$88.5m, due mainly to decrease in receivables and WIP, and increase in payables. Net gearing edged down slightly to 0.80x. Net orderbook US$856m. To cap off its strong start of the year, Swiber just announced a small T&I contract worth US$17-27m to be executed over 2Q12. This brings total value of work secured YTD to US$307m, vs. our back-end loaded order wins assumption of US$800m for FY10.

Recommendation

Keeping FY10/11 numbers intact. While 1Q10 accounts for only 7% of our FY10 recurring earnings estimate of US$64m, we expect sequential improvement in quarterly performance as the group executes on its large orderbook over the year. We estimate that our FY10 revenue forecast is 80% backed by secured orders. Maintain BUY, with TP of S$1.42. This remains pegged to 10x PE on recurring FY10 EPS. We believe near term catalysts include more contract wins. Separately, Swiber also announced plans to list its subsea services business on Catalist. This, however, is subject to regulatory approvals and prevailing market conditions.

 

Swiber Holdings Limited reported that revenue was relatively stable at US$84.5 million in 1QFY2010 as compared to US$87.1 million in 1QFY2009. The Group’s 32.2% decline in net profit in 1QFY2010 to US$8.1 million from US$11.9 million in 1QFY2009 was mainly attributable to higher administrative expenses, other operating expenses and finance costs.

 

Like real ?? too bad the share price can't move as people scare got germs !

 

Swiber Secures Letter of Award for Transportation and Installation of Heavy Structures

Friday, May 14, 2010

Swiber Holdings Limited (“Swiber” or together with its subsidiaries, the “Group”), a world class integrated construction and support services provider to the offshore industry, today announced a Letter of Award from a leading oil and gas operator in South East Asia.

The scope of work comprises the transportation and installation of heavy structures. The contract sum will range between US$17 million to US$27 million depending on the options provided in the contract. The work will commence in Q2 2012 and is expected to be completed in two months.

Said Mr. Raymond Goh, Executive Chairman and Group Chief Executive Officer of Swiber, “This is our fourth contract win for 2010, adding to the contracts that we have secured earlier this year: the consortium awards of US$306 million worth of contracts and the US$148 million EPIC contract which we announced a week ago.

In the Offshore Industry

“This contract win illustrates the Group’s capabilities as a one-stop service provider for the region’s leading oil and gas players. We provide a full suite of offshore services to support our customer’s requirements in various areas. In this way, we strengthen our position as a trusted and reliable partner of choice.”

Mr. Goh added, “Swiber has the capability to undertake contracts of varying complexities as well as durations, from as short as two months, as in the case of this latest contract, to as long as between two to five years for some of our other contracts. Our sophisticated and versatile fleet comprising 43 support and construction vessels gives us the flexibility to allocate our resources to meet the various needs of our customers.”

ozone2002      ( Date: 14-May-2010 17:41) Posted: think swiber got a letter of award..

 

think swiber got a letter of award..

 

• Maintain Outperform; results above. 1Q10 core net profit of US$7.9m (+12% yoy) was slightly above our expectation of US$7m, forming 20% of our full-year forecast and consensus. 1Q10 reported net profit of US$8m was below our expectation, forming 15% of our full-year forecast due to lower-than-expected gains from the disposal of assets in its sale and leaseback programme. However, our earnings estimates are intact as we expect the disposal of these assets to take place in subsequent quarters. Our target price is still S$1.65, set at 12x CY11 P/E. We see catalysts from more order wins, the successful delivery of new vessels and strong project execution.

• Revenue was stable at US$84.5m, mainly from the execution of a transportation and installation project in Myanmar that was secured in Nov 09. Project completion is expected in 2Q10.

• Positive swing in margins. Gross margins surged qoq to 20% (comparable to 1Q09) as construction vessels required for its projects were delivered in 2009, with less reliance on third party-charters. Swiber’s current fleet is 45 vessels. Its margin strength was also aided by the execution of transportation and installation projects which typically fetch higher margins. We believe blended gross margins could trend lower to about 18% in subsequent quarters with the execution of more EPCIC jobs.

• US$839m order book. Swiber won about US$454m worth of contracts (inclusive of consortium projects) in 1Q10. We believe the momentum could continue as it is bidding for two more projects from ONGC’s B-193 project (subsea and processing platform packages) worth about US$200m in total. We expect ONGC to award its contracts in 2Q10.

• Listing of subsea services on Catalist. Separately, Swiber announced its plan to list its subsea services business (Kreuz Subsea Group) on Catalist, subject to SGX’s approval. No further information was provided. Kreuz Offshore Subsea Services contributed about US$14m (4%) to Swiber’s revenue in FY09, while Kreuz Engineering owns two subsea support vessels and two deepwater AHTS vessels (US$108m in total).

 

no dividend again...

 

FIRST QUARTER RESULTS * FINANCIAL STATEMENT AND RELATED ANNOUNCEMENT

* Asterisks denote mandatory information

 

"DISCLAIMER:- This announcement was prepared and issued by the below mentioned listed issuer to the Exchange. The Exchange assumes no responsibility for the correctness of any of the statements made, opinions expressed or reports contained in this announcement and is posting this announcement on SGXNET for the sole purpose of dissemination only. In the event of any queries or clarification required in respect of any matters arising from this announcement, such queries are to be made to the listed issuer directly and not to the Exchange. The Exchange shall not be liable for any losses or damages howsoever arising as a result of the circulation, publication and dissemination of this announcement."

 

Name of Announcer *	SWIBER HOLDINGS LIMITED
Company Registration No.	200414721N
Announcement submitted on behalf of	SWIBER HOLDINGS LIMITED
Announcement is submitted with respect to *	SWIBER HOLDINGS LIMITED
Announcement is submitted by *	Goh Kim Teck
Designation *	Executive Chairman and CEO
Date & Time of Broadcast	13-May-2010 18:39:07
Announcement No.	00172

 

 

>> ANNOUNCEMENT DETAILS

The details of the announcement start here ...

 

For the Financial Period Ended *	31-03-2010
Description	Please refer to attachments.

 

Attachments

Swiber.FY20101Q.13May2010.pdf   PressRelease.Swiber1QFY2010.pdf Total size = 368K (2048K size limit recommended)

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