For FY13, Swiber Holdings reported a 11.2% rise in revenue to US$1058.9m and a 36.0% increase in PATMI to US$62.1m, such that FY13 revenue and net profit accounted for 93% and 137% of our full year forecasts, respectively. We judge net profit to be above expectations, mostly due to a stronger-thananticipated share of profits from associates. The topline increase was mainly due to a higher contribution from SE Asia, and net profits up from firmer sales contribution from associates and a fair value gain from an option agreement between Swiber and Vallianz. Gross margin for the year at 15.9% was again within expectations – and the order book now stands at S$800m. Maintain HOLD with our fair value estimate of S$0.72 under review.

Source: OCBC Research - 27 Feb 2014