Singapore Stock Market News

Oil & Gas - Equipment and Services

StockFanatic
Publish date: Fri, 01 Feb 2013, 09:30 AM
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Saipem spA issued a profit warning last night - may cause knee jerk reactions to OSV stocks
Singapore offshore oil-service stocks could succumb to near-term weakness from Saipem's profit warning last night. However, we believe it is too pessimistic to assume similar fates for companies with different compositions and geographical focuses.

Maintain Overweight on the sector with catalysts still expected from order wins and better earnings. No change to our stock ratings, EPS or target prices for Ezra and Swiber. Catalysts for Ezra could include a stronger-than-expected margin recovery for its offshore division and an earnings recovery in 2H13. Swiber's successful execution of projects in India and South-East Asia could also catalyse its stock.
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