SembMarine: 1Q11 results missed consensus, largely due to revenue recognition issues.
Net profit came in at $151m, flat yoy, -37% yoy, vs consensus estimates of $171m.
The shortfall was from revenue, which came in at $829m, -39% yoy, -16% yoy...
ben_oh: This was due to i) many of the jack-ups that were secured at end-2010 still being in the planning stages hence having very little recognition in 1Q11, and ii) 1Q10's number being inflated by more turnkey semisub projects and resumption of revenue recognition of Petrorig 3 that was previously deferred...
1Q11 operating margins at 20% were significantly better than the 12% recorded in 1Q10, but in line with the annual average margin achieved in FY10. This was driven by higher operational efficiency and productivity gains through execution of repeat rig orders...
Net order book stands at $5.2b with completion and deliveries stretching till 1Q14. YTD, the group has secured $1.5b in new contracts and mgt appears optimistic on prospects, on the back of healthy industry fundamentals, replacement opportunities with the rapidly ageing rig fleet, and focus on high-spec units and industry safety. In addition, SMM has 8 rig construction options outstanding, collectively worth a further ~$2.5b. About 20% of these options will expire in early 2012...
A number of houses raise EPS estimates, on higher margin assumptions also lift target prices. Credit Suisse (TP $6.60 from $6.30), JPM ($6.70 from $6.40), Goldman (TP $5.50 from $5.40), reiterate Buy/ Outperform ratings.
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Sembmarine
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Jackpot2010
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21-May-2011 10:40
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'No deadline' for Petrobras capex planNews wires
21:03 GMT 20. May 2011 | last updated: 21:04 GMT 20. May 2011 |
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uncleti88
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21-May-2011 07:09
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 Looks like this counter has been having a good run. The COT Proxy is approaching the convergence point, not sure if it is good to go long at this moment, proxy is showing a downtrend, I believe better to wait a few more weeks to see a clearer direction. It can either go up or down from here. |
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krisluke
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21-May-2011 01:07
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Still quiet on contract news... Do watch out for the gap !! | ||||
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krisluke
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19-May-2011 20:59
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Sell In May And Buy In July-August |
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rickyw
Master |
18-May-2011 15:18
Yells: "keep happy..." |
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agree...waiting for announcement new contract...will shoot up to above 5.50 again...
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krisluke
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10-May-2011 19:35
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Sembcorp Marine 1Q11 net profit of S$151m (+25% yoy) was slightly below consensus and our expectations. We expect stronger quarters ahead as revenue catch up with more projects reaching initial recognition milestones. Maintain OUTPERFROM and TP S$6.80. ///cimb Sembcorp Marine’s 1Q11 results below expectations on deferred earnings recognition. EBIT margins in line, +8ppt y-o-y to 20%. Outlook for new orders intact, with SMM in the running for several projects. We expect a stronger 2H11. Maintain BUY and S$6.63 TP, with potential near term catalysts from order wins. ///bdsv Summary: Sembcorp Marine (SMM) reported a 39% YoY fall in revenue to S$828.9m and a 1.2% increase in net profit to S$150.6m in 1Q11, such that the latter accounted for 21% and 22% of ours and the street’s full year estimates. Gross profit margin at 23.5% was significantly higher in 1Q11 compared to 14.1% in 1Q10, and we are expecting better financial performance in the coming quarters. Besides the premium jack-up rig market in which SMM is still positive about, the group is also looking to secure more FPSO conversion and fixed platform orders. Meanwhile, SMM has a net order book of S$5.2b with completion and deliveries stretching till 1Q14. This excludes eight jack-up rig options that may be exercised from now till early next year, depending on the specific rig. No option has expired so far with the owner choosing not to exercise the option. With the positive outlook of the industry, we maintain our BUY rating and fair value estimate of S$6.30 on SMM. (Low Pei Han) iocbc |
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krisluke
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10-May-2011 19:33
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SembMarine |
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cheekong22
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10-May-2011 17:39
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SembCorp Marine Ltd- Company Results (Nicholas Low) Recommendation: BUY Previous close: S$5.58 Fair value: S$6.60 · 1Q11 results in line with expectations. Revenue and net profit met 23% and 19% of our FY11 forecast respectively. · Margins continue to impress and rescue the firm from lower turnover. · Expect revenue and margin recognition of Songa Eclipse in 3Q11 to boost FY11 bottom-line. · Maintain BUY recommendation with target price unchanged at $6.60. | ||||
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krisluke
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09-May-2011 19:24
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congratulations on the +$
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krisluke
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09-May-2011 19:23
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when sing dollars turn stonger, it is traditionally bad news for sembcorp marine. The reason is obvious as most of their contracts are sign and paid in US dollars. Let's see how the CEO and CFO work the thingys out for their business.
seems oil going for a rebound today !! DXY turns weak liao
With AUD to slide to less than 1 dollar against USD and sing dollar to be strengthened by $0.01/2 by year end.... SMM got to Butt up and search for new contracts... |
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krisluke
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09-May-2011 18:37
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Sembcorp Marine Q1 net profit up 1.2% Singapore’s Sembcorp Marine (SCMN.SI), the world’s second largest oil rig builder, said on Monday first quarter net profit rose 1.2% as revenue fell while margins improved due to greater operational efficiency.
Sembcorp Marine earned $150.6 million in the three months ended March, up from $148.8 million a year ago.
Revenue fell 39% to $828.9 million due to lower revenue recognition from projects in the pipeline as some jack-up rigs were still in the planning stage. Sembcorp Marine was bullish about prospects, saying the fundamentals driving the offshore oil industry remained intact “given the increase in the exploration and production spending budgets of major oil companies and firm oil prices”.
The group has a net order book of $5.2 billion with completion and deliveries stretching till first quarter of 2014, including $1.5 billion in contract orders secured since the start of 2011.
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eplepl
Master |
09-May-2011 15:20
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yes very lucky.... 200 bucks profit.
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krisluke
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07-May-2011 13:45
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1st quarter on monday 9th may 2011. Hope it will close $5.56 and above for more upside my view, Good luck and happy trading to those vested.
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krisluke
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06-May-2011 23:45
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The key to watch is $5.40 and $5.30. Do watch out on the volume as well. It was seems to me that the BBs were unwillingly to push the price higher at $5.56. If the selling pressure was formed at $5.40-$5.30, the most likely scenerio would be the directors are selling for PROFITS. Anyway, next will be 1st quarter report day. stay tune.. let's hope it will get back to $6xx again 
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hlfoo2010
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06-May-2011 09:25
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Then let us know early when u sell by mistake again !!!!!!!!!!
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ysh2006
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06-May-2011 08:36
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Hi I think coming soon contract win from Burma /Thailand Oil Field this month...also good result announcing next week ... This marine stock alway kanna press down by BB pre result time and chong after result ,the BB trick us investors to sell cheap to them.....   
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krisluke
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05-May-2011 22:23
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Only one hope to rescue sembmar from blood bath... Announce new contracts.
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rotijai
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04-May-2011 17:00
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sold by mistake?? u mean u actually shorted it last week?
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eplepl
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04-May-2011 16:57
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sold by mistake @ 5.79 now lower than 5.45 5.43 |
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lowchia
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03-May-2011 21:58
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On Tuesday, Sembmar re-test the support at $5.52 and closed at $5.55 with regular volume of 5.35 million shares traded. A long black candle stick with short lower shadow indicates investor are selling this stock down without any hesitant. Both RSI & MACD are bearish as RSI trend downwards. Important Resistance of Sembmar: $5.78 Immediate Support of Sembmar: $5.52 Currently prices are resisted by 50 days MA. Prices re-test the ............ READ MORE |
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