SembMarine (S51.SG) may gain on better-than-expected 3Q10 results, management's upbeat outlook, says Dow Jones.
Net profit more than doubles to $296 million vs $144.6 million year earlier on higher margins, $53 million write-back of payout to Societe Generale over disputed FX transactions.
Excluding write-back, net profit +68% at $243 million vs $180 million tipped in Dow Jones poll. Despite revenue down 27% due to fewer projects, gross margins rose to 29.8% from 13.6% on improved productivity.
Existing orderbook at $4.7 billion. Company expects more ship-repair jobs in coming months, increased rig-upgrading orders following lift of US government ban on drilling Gulf of Mexico.
“The guidance is very much skewed towards the upside given the rising demand for high-specification jack-ups and floaters given the potential replacement demand,” says BNP, which has Buy call with $5.58 target. Stock down 0.4% at $4.74 Thursday (market closed Friday for public holiday), expected to take out recent $4.79 52-week high.