Sembcorp Marine - OCBC Investment 2017-01-17: In the running for Statoil’s FPSO contract

Sembcorp Marine - OCBC Investment 2017-01-17: In the running for Statoil’s FPSO contract SEMBCORP MARINE LTD S51.SI

Sembcorp Marine - In the running for Statoil’s FPSO contract

  • According to Upstream, Norway’s Statoil will host key meetings this month with a group of contractors vying to build the hull and living quarters for a newbuild FPSO vessel for its Johan Castberg project in the Barents Sea. 
  • Upstream’s sources said that three South Korean players (Daewoo, Hyundai, Samsung) and one Singaporean yard (Jurong Shipyard) are in the running for this contract , though Wood Mackenzie has pointed out that a final investment decision could slip into 2018 due to “project economics, complexity and Statoil’s stretched finances”. 
  • It is encouraging to hear of talks about new capital expenditure; we had been expecting new order wins of about S$1.5b for SMM in 2017, mostly relating to production rather than drilling, as well as potential wins from Gravifloat. 
  • Should new order flows be greater than expected, we would relook our estimates. 
  • Meanwhile, we maintain our HOLD rating and S$1.43 fair value estimate on SMM.




Low Pei Han OCBC Investment | http://www.ocbcresearch.com/ 2017-01-17
OCBC Investment SGX Stock Analyst Report HOLD Maintain HOLD 1.430 Same 1.430



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