Maintain BUY rating and S$2.00 TP.
Secures orders from Farstad PSV worth NOK700m
Building on its recent order wins momentum, STX OSV has announced new orders for two PSVs from Farstad Shipping worth a total of NOK700m (c.US$117m). These were the potential orders we had highlighted in our note dated 18 June 2012.
The PSVs will be built to STX OSV’s own PSV 07 design with 5,600 DWT capacity. The first unit is scheduled to be delivered from STX OSV Langsten in Norway in 2Q 2014. The second unit will be delivered from Vung Tau yard in Vietnam in 3Q 2014.
Including the two orders announced last week (assuming they are finalised), STX OSV’s FY12 YTD order wins stand at NOK6.8bn (c.US$1.1bn). This suggests it is on track to meet our full year order win assumption of NOK10.0bn.
These latest orders will enhance earnings visibility, raising book-tobill ratio to 1.52x. The latest orders are indicative of the robust underlying fundamentals in the O&M sector and support our positive view on the sector and STX OSV, notwithstanding the overhanging macro uncertainties and Euro worries.
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