SembMarine - US$650mn Contract Surprise

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SGX Stocks and Warrants

SembMarine - US$650mn Contract Surprise

kimeng

Publish date: Mon, 02 Apr 2012, 10:34 AM

Warrants Highlight

SembMarine - US$650mn Contract Surprise

Macquarie is pleased to list the following new warrants this morning:

Code	Name	Type	Expiry	Exercise Price
P8OW	SembMar MBeCW121001	Call	01-Oct-12	5.80
P8PW	Wilmar MBeCW121001	Call	01-Oct-12	5.50

SembMarine wins race to US$650mn order
On Friday, Upstream reported that SembCorp Marine has won the race to secure a US$650m order from Seadrill for a harsh environment Semi-sub. It was reported that two other Korean yards were in the fray and that the official announcement will come next week.

The Semi-sub order comes from Seadrill, a Norwegian contractor and one of the top players in the new Ultradeepwater market. Seadrill had previously only ordered from Korean yards.

Takes lead over Keppel Corp
Its counterpart Keppel Corp said last week that it signed a letter of intent for a US$315mn Semi-sub order from Floatel.

The US$650mn order takes SembMarine’s total contract wins in the last three months to $2.6bn while Keppel Corp has only bagged S$580mn worth of order year-to-date.

SembMarine closed at $5.28 on Friday.

Key Macro Data this week;
On the macro front, markets may see a quiet start to the new quarter as most indices are shut for the Easter holiday. Singapore and most of Asia will be closed on Friday, April 6 while Hong Kong is shut on Wednesday April 4 for Ching Ming. As such, Macquarie will not be providing markets over the HSI warrants listed in Singapore on that day.

Mon 2 Apr: U.S ISM Manufacturing (Mar)
Tue 3 Apr: China Non-Manufacturing PMI (Mar)
Wed 4 Apr: U.S ADP Employment Change (Mar)
Thu 5 Apr: China HSBC Services PMI (Mar), Hong Kong PMI (Mar)
Fri 6 Apr: U.S Change in Non-Farm Payrolls (Mar), U.S Unemployment Rate (Mar)

Quick look at Singapore single stock warrants to leverage on
Investors keen to take a leveraged view over single stocks in Singapore may wish to consider the below revised list of warrants for each respective single stock underlying. (click "more")

Singapore Market Wrap

Spectacular Q1 for STI

The STI closed at 3,010.46 on Friday, rising 0.7% week-on-week. With 13.8% gains in the past three months, 1Q12 was STI's best quarterly performance since 2009. The Singapore market capitalisation is now at $817.6bn, compared to $716.3bn at the end of last year. However, the index has been struggling sideways around the 3,000 psychological level throughout March.

Apr Call STI 2950MBeCW120430 (P1JW) exercise level 2,950.*
Apr Put STI 3000MBePW120430 (P3FW) exercise level 3,000.*

Longer dated Call STI 3100MBeCW130131@ (PA7W) exercise level 3,100.*
Longer dated Put STI 2800MBePW130131@ (PA8W) exercise level 2,800.*

Biosensors back above $1.50
Blood stent manufacturer, Biosensors, rose 2.0% last week to $1.505. Last Monday, the company announced that it incorporated a new subsidiary in Spain which will be engaged in marketing activities and securing new tenders with Spanish hospitals.

Call BiosensoMBeCW120905 (P2IW) exercise price $1.65.*

NOL U-turn on fund raising
NOL was one of the best performing counters in the STI last week, gaining 2.5% to $1.415. The company announced on Tuesday that it will raise cash through an offering of SGD denominated perpetual capital securities. However, on Friday after market, the management decided to postpone the proposed issue "in view of the current market conditions"

Call NOL MB eCW120903 (P1AW) exercise price $1.50.*
Long Dated Call NOL MB eCW130603 (M8OW) exercise price $2.60.*

Overnight Market Wrap

S&P Gained 12% in Q1

The S&P500 rose 0.4% on Friday to bring its 1Q gains to 12% this year. European stocks rallied after European finance ministers meeting in Copenhagen agreed to boost their rescue fund to about EUR 800bn.

On economic news, US consumer purchases surged 0.8% in February, the largest gain since July. A big contributor to the increase was the rising gasoline prices. Over the weekend, the Chinese manufacturing PMI was higher than expected at 53.1.

Overnight Markets

Indices	Last	Change
STI	3010.46	0.6%
HSI	20555.58	-0.3%
DJIA	13212.04	0.5%
Nasdaq	3091.57	-0.1%

Corporate News

Corporate Announcements

DBS Group has entered into a conditional share purchase agreement with Fullerton Financial Holdings to which DBS will acquire all the shares in Asia Financial (Indonesia) Pte. Ltd. for an aggregate purchase price of IDR45.2 trillion (approximately S$6.2 bn. DBS Group has requested to be on a trading halt this morning.

Results Announcement
Tue 17 Apr: SGX 3Q12

Ex-Dividend Date
Wed 25 Apr: Keppel Corp ($0.26), SembMarine ($0.20)
Wed 26 Apr: STX OSV ($0.10)
Fri 27 Apr: OCBC ($0.15)
Mon 30 Apr: Cosco ($0.03)
Fri 4 May: Wilmar ($0.031)
Mon 7 May: UOB ($0.40), CapitaLand ($0.08)
Wed 9 May: DBS ($0.28)

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