Sembcorp Marine - Secured FPSO conversion contracts worth S$600m. - TopicsExpress



          

Sembcorp Marine - Secured FPSO conversion contracts worth S$600m. Maintain BUY and target price of S$4.80: DBS Vickers Sembcorp Marine’s wholly-owned subsidiary Sembawang Shipyard has secured a Floating Storage Production Offloading (FPSO) conversion contract worth about S$600m from Saipem SA, France for the conversion of two FPSOs for the Kaombo Project in Offshore Angola. The first VLCC, Olympia, is expected to enter Sembawang Shipyard in third quarter 2014 while the second VLCC, Antartica, will be in the shipyard in first quarter 2015. The total project duration will be 32 months. With these contracts, SMMs YTD wins are lifted to S$2.54bn, forming 51% of our full year assumption of S$5bn. The projects underscore SMMs strength of its capabilities and established track record in the field of FPSO conversion. Maintain BUY and target price of S$4.80.
Posted on: Mon, 21 Jul 2014 02:01:16 +0000

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