Singapore Stock Market News

Swiber Holdings - Still better than peers

StockFanatic
Publish date: Wed, 14 Aug 2013, 02:02 PM
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Forays into new markets such as Mexico could have stalled Swiber's margin expansion. Still, it is better off than its international peers (Saipem and McDermott), which are reeling from profit warnings and project operating losses.

1H13 was below our expectation (49% of FY13) and 46% of consensus; we had expected front-loading with 1H at about 60%. The shortfall was due to lower-than-expected revenue and margins. We cut our EPS by 10% for FY13 accordingly. Nevertheless, maintain Outperform and target price at 0.9x CY13 P/BV (30% below its 5-year mean). Stronger order wins are still expected to catalyse its shares.
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