Maintain Outperform. No changes to our EPS estimates or target price, still at 0.7x CY12 P/BV (3-year mean). Contract awards of its jack-ups and a stronger 2H could catalyse its share price, we believe.''

We met newly appointed CEO Bruce Gemmell, CFO Siriwan Chamnannarongsak and the subsea operational team, who outlined initiatives to turn around the subsea business. Improvement in utilisation day rates and margins are reflective of the work done so far (i.e. aggressive bids for jobs, relocation of commercial base from Thailand to Singapore, tighter costs controls). We expect subsea to make further headway with plans to integrate the three subsea business units into one. This enables the group to more effectively deploy personnel and assets across markets to maintain utilisation.

Earnings risks are on the upside, as we have conservatively projected a 68% utilisation rate for FY12 'comparable to the 69% in FY11. Average projected day rates are also lower at about US$48,000 as compared to the US$52,000 achieved in FY11.