Swiber Holdings reported a 35.6% YoY fall in revenue to US$199.5m but saw a 139.3% increase in net profit to US$48.0m in 1Q14, boosted by a US$95.1m gain on disposal of subsidiaries (Kreuz). Excluding this one-off and a US$20.9m fair value on financial liabilities, the group saw a core net loss of US$26.2m in the quarter, below our expectations.

The group has a current orderbook of US$650m, of which a significant portion of projects will commence in 4Q14. We will have more details at the analyst briefing later in the afternoon, but with the disappointing results and dim earnings outlook for the next two quarters, we put our Hold rating and fair value estimate of S$0.72 under review.

Source: OCBC Research - 15 May 2014