PACC OFFSHORE SVCS HLDG LTD.
U6C.SI
PACC Offshore Services Holdings - Not the lowest bidder in Petrobras tender
- According to Upstream (“Low bidder emerges in Petrobras flotel tender, 6 Sep 2016), Dutch player OOS International has submitted the lowest bid in a tender to supply Petrobras with an accommodation and maintenance unit in the Santos basin.
- Recall that our earlier report on 1 Sep 2016 on PACC Offshore Services Holdings (POSH) highlighted that the company is one of three leading in the race, and that POSH had offered the POSH Xanadu for this tender. According to Upstream, OOS had offered a vessel with a charter rate of US$148.3k/day while POSH Xanadu was looking for US$154k/day.
- Given the small difference (~4%) in dayrates, we would not write off POSH as a contender just yet, though chances may not be high as OOS could possibly negotiate a reduction in dayrate with Petrobras to secure the charter.
- Maintain HOLD with S$0.29 fair value estimate on POSH.
Low Pei Han CFA
OCBC Investment
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http://www.ocbcresearch.com/
2016-09-09
OCBC Investment
SGX Stock
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